Detained Shanghai tycoon Zhou's brother-in-law, nephew also held

SHANGHAI, July 17 (AFP) - The chairman of Fuyou Securities Mao Heping has been detained in a case apparently linked to Shanghai property tycoon Zhou Zhengyi, state press reported Thursday.

Mao, who is also Zhou's brother-in-law and a director of Zhou's Shanghai Nongkai Development Group, is being held by authorities for a possible criminal investigation, the China Securities Journal reported.

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The newspaper gave no details of Mao's possible crimes.

In addition, Zhou Zhengyi's nephew, Zhou Weiyan, a director of Nongkai Development, has also been detained while several other employees of the company are also under investigation, it said.

Official newspapers have previously said that Fuyou Securities allegedly made irregular use of client bonds and other funds.

Nongkai Development is estimated to owe several domestic banks about 4.5 billion yuan (540 million dollars) in principal plus interest, according to the China Securities Journal.

Zhou Zhengyi, a Shangahi property developer and one of China's richest entreprenuers, was reported detained at the end of May for his involvement in alleged fraudulent loans of 1.5 to 1.7 billion yuan from the Bank of China.

Zhou allegedly used the loans to buy shares in the listed Hong Kong companies, Shanghai Land and Shanghai Merchants, two companies under his effective control.

Chinese authorities have so far only acknowledged that Zhou's flagship company Nongkai is under official investigation.

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