A Chinese businessman who made massive investments in Panama has been arrested in Shanghai

Gao Tianguo, now the former president of Shanghai Gorgeous, is collaborating with Chinese authorities who are investigating activities related to former executives of investment firm Anxin, related to issuing loans without following proper review procedures.

Gorgeous, which owns 52.4% of Anxin shares and is building a container port and a natural gas-based power generation plant in Panama, said in a statement signed by Kenneth Zhang, that Tianguo "is not under precautionary measures. judicial deprivation of liberty, nor has he been convicted of any illegal activity ”.

However, last week the Chinese publication Caixin Global reported that Gao had been detained by the Shanghai police on suspicion of violating a law that prohibits irresponsible credit practices resulting in large losses, according to Anxin reported to the Stock Exchange. Shanghai Stock Exchange.

Shanghai Gorgeous Group acknowledged that the investment company Anxin is in the process of reorganization, but that this does not affect in any way the continuity of operations of the other related companies, "or any other business sector where Shanghai Gorgeous operates." .

In the statement, the company also clarifies that there is no process in China or in any other jurisdiction, against the Shanghai Gorgeous Group or any director of the company.

It said that the two projects that Gorgeous develops in Panama, through Sinolam Smarter Energy will create hundreds of direct jobs and thousands of indirect jobs in the province of Colón after the state of a national health emergency is lifted by the government of Panama, " thus generating jobs, energy, and well-being for the Republic of Panama ”.

The projects have  an investment of approximately $1,8 billion  but the percentage of construction progress is unknown.