(Yicai Global) July 9 -- The share price of China's wealth management platform Noah Holdings plunged almost 21 percent today after its unit provided funds to Camsing International Holding, which is suspected of fraud.

Noah's stock [NYSE:NOAH] dropped 20.43 percent to USD35.60, while shares of asset management platform Camsing [HK:2662] were in free-fall today, closing 26.67 percent down at HKD0.66 (USD0.08 cents) after their 80 percent nosedive yesterday.Online retail colossus JD.Com also got caught up in the ruckus, with damage claims asserted against it sending its shares [NASDAQ:JD] down 1.48 percent yesterday.
Noah owns no shares in Hong Kong-based Camsing, though it appears on its stockholder list because one of its private equity funds and a subsidiary Noah Finance Leasing penned an equity pledge contract with it to "supply chain financing involving third-party companies related to Camsing," the Shanghai-based firm, which is among China's largest private wealth managers, said in a statement yesterday.

The fund, Shanghai Gopher Asset Management, has filed various lawsuits to protect the interests of its fund investors, including one against JD.Com.

The Shanghai Public Security Bureau's Yangpu district branch arrested Camsing's controlling shareholder, founder and Chief Executive Ching Lo on June 20, the company said in a July 5 statement, without explanation.

The investment target provides financing for the accounts receivable of Camsing and JD.Com, financial media China Fund reported today, citing an internal mail Noah Chairman Wang Jingbo circulated.

JD.Com has nothing to do with the debt and Camsing is guilty of fraud by falsifying its business contracts with it, the Beijing-based e-commerce giant deemed potentially ultimately liable in the case told Yicai Global today, adding it was shocked by the act and had already reported the case and is cooperating with victims.

Camsing's domestic A-share listed arm Jiangsu Boxin Investing & Holdings' stock [SHA:600083] hit the 10 percent limit down bourse rules impose at opening and limit up at closing yesterday. Its shares also nudged the one-tenth limit up today to stop trading at CNY14.86 (USD2.16).

Editor: Ben Armour