Employees of Huarong’s subsidiaries in Hong Kong have had their passports seized by the authorities following the opening of an investigation into the state-run asset manager last week, reports the Financial Times.
The staff were also given a deadline of Monday this week to give over further travel documents.
According to Hong Kong’s Labour Department, the Chinese government’s decision is against the city’s law. “Nothing gives employers the power to force employees to involuntarily hand over their travel documents.”
Huarong’s chairman Lai Xiaomin was placed under investigation last week on the grounds of “severe disciplinary violations”. He is the latest casualty in the government crackdown on corruption in the financial sector, following examples of firms such as Anbang and CEFC.