(Yicai) July 8 -- Hu Xingrong, the actual controller of Kangnan Technology, a Chinese investment firm best known as the largest shareholder of textile maker CHTC Helon, has been placed under compulsory measures in China.

Hu has been made subject to “compulsory measures by the competent authorities,” CHTC Helon announced yesterday, citing information it received from Wenzhou-based Kangnan.

CHTC Helon did not provide a reason, but “compulsory measures” typically fall into two categories: criminal and administrative. The former include summons, bail pending trial, residential surveillance, detention, and arrest, while the latter include restrictions on personal freedom, sealing of premises or property, asset confiscation, and the freezing of deposits and remittances.

“Competent authorities” refers to law enforcement agencies authorized to investigate, freeze, and seize funds. They include the courts, prosecutors, public security agencies, tax authorities, and customs.

The announcement follows rumors that the 45-year-old Hu, who made it onto the Hurun Global Rich List with a net worth of CNY13 billion (USD1.9 billion) in 2024, has not been seen in public recently.

Hu has never held any position at CHTC Helon and does not participate in its daily operations nor its key decision-making, the firm said, adding that its board of directors and management are working as normal, and all production and business activities are unaffected.

CHTC Helon’s shares [SHE: 000677] closed 2.7 percent higher at CNY1.55 (23 US cents) each today, while the broader Shenzhen market gave up 1.9 percent. CHTC Helon is down 65 percent since the end of last year.

At the end of the first quarter, Kangnan was CHTC Helon’s biggest shareholder, with a near 16 percent stake. Hu owns almost 100 percent of Kangnan. He is also the founder of Duofu Group, a large private enterprise ranked among the top 500 companies in the country.

Since his last public appearance in October 2025, Hu has largely disappeared from the public eye, and Duofu is reportedly facing liquidity issues.

Duofu ranked 143rd on the Fortune China 500 list in 2024, with annual revenues of CNY218.9 billion (USD32.2 billion) and total assets of CNY143.3 billion. It employs over 10,000 people and operates in multiple sectors, including smart manufacturing, urban construction, trade, aviation, new energy, and cultural tourism real estate.

Editor: Tom Litting