The Chinese government has confirmed that it is investigating Yang Bin, the man chosen by the North Korean government to run its first economic zone for inward investment, Reuters reported. Yang Bin, who holds Dutch nationality, was placed under house arrest at his home in Shenyang, while the authorities investigated his orchid-exporting firm Euro- Asia Agriculture (Holdings) for suspected illegal activities. Yang has already admitted owing Yn10m in taxes, but said that this was unrelated to his company.
China's foreign ministry played down reports of a rift between the two countries and has denied that North Korea was sending officials to China to discuss Yang's detention. A letter from the China Securities Regulatory Commission to Hong Kong's Securities and Futures Commission published by Money Times of Hong Kong said that the Hong Kong-listed Euro-Asia was suspected of exaggerating its revenues in order to improve its listings status.