Police bust underground banking ring tied to Hong Kong shell companies

Police in Zhejiang province have detained around 100 suspects from eight gangs in the course of a underground banking investigation involving transactions that total RMB410 billion (US$64.24 billion), Reuters reported, citing state media. Those detained belonged to eight gangs linked to a ringleader who operated dozens of shell companies in Hong Kong involved in money laundering and foreign exchange transactions, according to state news agency Xinhua. Beijing said in August it would launch a three-month crackdown on underground banking as an economic slowdown and market volatility prompted a wave of capital outflows this year.