Recently, Shun Chen Senior Apartment, supported by the Yuyao City Government in Zhejiang, has been embroiled in a financial scandal. The latest information revealed that there are over 4,000 creditors, with the majority being elderly residents and their family members living in the senior apartment, with some owed amounts exceeding tens of millions. Experts believe that “there are many unscrupulous businessmen in China currently, and the government bears a great responsibility.”
98% of the residents inside Shun Chen Senior Apartment have “loaned” money to the Shun Chen Group, and the percentage among employees is 100%. After over a decade of trust being shattered, the anxious elderly residents waiting finally received an official information disclosure on July 8, 2025, entitled “Summary of the Current Stage of Pre-Restructuring Related Situation Briefing,” indicating there are over 4,000 creditors inside and outside the apartment, but the scale of debt was not disclosed.
According to the New Beijing News, it was disclosed that the highest “loan” amount among the creditors exceeded tens of millions.
Shun Chen Group operates a total of 3 retirement projects, with Xu Shefeng and Xiong Lanqing, a couple, as the executives. Xiong Lanqing’s father is Xiong Borong, the founder of Shun Chen Group, who used to be a deputy mayor in charge of agriculture in a township in Yuyao. Before investing in elderly care projects, Xiong Borong and his daughter and son-in-law engaged in private lending, providing working capital to individuals or businesses in need of funds.
Perhaps due to their familiarity with private lending, Shun Chen Group’s investments and operations over the past decade have also relied on private lending. Before the financial scandal on April 17, creditors lending to Shun Chen Group were usually able to receive the promised interest on time each month. On April 17, some creditors were even informed that they couldn’t withdraw their money that day and had to wait until next month.
Videos circulating online show that after the explosion of Xiyang Red Senior Apartment Investment Co., Ltd., a subsidiary of Shun Chen Group, over a hundred elderly individuals gathered at the entrance of Shun Chen Group on April 21, demanding their investment funds back. At that time, there were rumors circulating on the internet that Shun Chen Group’s legal representatives Xu Shefeng and director Xiong Lanqing had absconded, which was not in line with the actual situation.
On April 25, Shun Chen Senior Apartment posted a notice stating that they had “initiated reporting to relevant departments, seeking guidance and assistance, and currently, the operation of two nursing home sites is normal.” The notice also mentioned that they plan to apply for pre-restructuring at the Yuyao People’s Court and asked all creditors to “believe in our company and be patient.” The notice provided a consultation hotline, but when dialed on July 25, the number was out of service.
The Shun Chen Senior Apartment financial scandal is not an isolated case, as Shanghai Island Sea Investment Group Co., Ltd. (Island Sea Group) also faced a financial scandal in April this year. Island Sea Group is a cultural, tourism, and health care enterprise focused on the needs of the middle to high-end elderly population. The amount involved in Island Sea Group’s case is rumored to be as high as 4 billion RMB.
Chinese issues expert Wang He told Dajiyuan on July 24, “There are many unscrupulous businessmen in China currently, and the government bears a great responsibility.”
Shun Chen Senior Apartment is the largest elderly care project in Yuyao and the only elderly care project currently included in the “Twelfth Five-Year Plan” key support program of the Ningbo Municipal Government. The large characters hanging in front of the Shun Chen Senior Apartment building read “Yuyao Shun Chen Group Community Home Care Service Center” in red font.
From the beginning of the project, the Shun Chen Senior Apartment project received support from the Yuyao City Government, and illegal fundraising was present from the start. For example, splitting and selling the ownership of elderly care apartments violated policies and regulations, but the Shun Chen Senior Apartment project had been splitting and selling from the beginning without issuing property certificates, using “nurturing service agreements” as replacements.
Wang He believes that the project evolved into commercial fraud and besides the factors of unscrupulous businessmen, the negligence and inaction of the Ningbo Municipal Government cannot be evaded.
Recalling the situation from a deceived elderly resident’s perspective: In 2019, the bulletin board in the apartment was full of photos of government leaders visiting for research.
Considered a benchmark enterprise, one elderly individual under the supervision of the Civil Affairs Bureau discovered after the scandal that the house she purchased through “pre-booked leasing” was actually owned by another individual who also signed a “reservation leasing agreement.” It dawned on her that she fell victim to a case of double-selling.
The so-called “pre-booked leasing” method involved the elderly selecting a house, paying a “deposit” (which was actually the purchase price), and then Shun Chen Senior Apartment renting out the property on their behalf, with the elderly receiving monthly rent and paying property fees. The apartment promised that the agreement could be renewed annually, and if not renewed, the full deposit would be refunded, effectively earning free accommodation or monthly rent. However, after the Shun Chen scandal, all commitments were nullified.
On July 3, Yuyao City Government officials informed creditors that the Yuyao Public Security Bureau had filed a case, three key suspects had been criminally detained, and law enforcement agencies were working diligently to recover losses and trace assets.
Wang He stated, “The government has a responsibility to help these elderly individuals recover their retirement funds and investigate the responsibilities of unscrupulous businessmen, but how will the government be held accountable? Will they continue to turn a blind eye?”
“In the past, businessmen were called ‘ethical businessmen,’ who prioritized mutually beneficial transactions based on reputation, ensuring both parties benefited. What is an ‘ethical businessman’? For example, a rice seller would give a bit more rice to a buyer, making a small mound on the scale, hence ‘ethical,’ giving the buyer a little extra to make them happy. After the Chinese Communist Party’s destruction of traditional values, ‘ethical businessmen’ vanished, replaced by ‘unscrupulous businessmen’ who would do anything for profit.”
Xu Shefeng and Xiong Lanqing, along with Xiong Borong and his spouse, all lived within the Shun Chen Senior Apartment, alongside the elderly residents, who are also creditors they owe money to. Xiong Lanqing oversees the company’s finances, addressing the elderly residents as “uncles” and “aunties,” frequently interacting with them as friends in everyday conversations. Xiong Lanqing often personally asked for loans, and even drove the elderly to banks to withdraw money, instructing them not to tell their children.
Apart from Shun Chen Senior Apartment in Yuyao (established in 2010), the Shun Chen Group invested in a large-scale retirement service complex project called Qinxixiyuan International Wellness City in Wenling City, Zhejiang, in 2019, covering an area of 86 acres with a planned total bed capacity of no less than 2,500.
As reported by the Zhejiang Daily, this retirement project was listed as a major municipal project by Wenling City that year, with not only local government officials but also the then Director of the Civil Affairs Bureau of Taizhou City attending the groundbreaking ceremony. This news had been displayed in the promotional column of Shun Chen Senior Apartment. Information disclosed by the New Beijing News revealed that the rupturing of Shun Chen Group’s financial chain was due to the inability to sell the Wenling project due to the impact of the epidemic and a sluggish real estate market, resulting in heavy losses.
Since the beginning of 2024, it has become increasingly difficult for creditors to retrieve their principal. However, at the end of 2024, Shun Chen Group announced plans to go public and sell original shares. As a result, all employees of Shun Chen Senior Apartment invested in the plan, with even the minimum investment amounting to 100,000 RMB.
By the end of March, Shun Chen Group had set up a canopy and stage at the square in front of the senior apartment, inviting a Yueju Opera troupe to perform for three days, with a grand attendance, and all elderly residents were offered free tickets. However, less than a month later, Shun Chen Group faced the financial scandal.
Wang He remarked, “Many of those who moved into Shun Chen Senior Apartment were teachers and retired officials, individuals with educational backgrounds and social experience, different from rural farmers who fall prey to scams. This reflects how scam methods in China have become ‘sophisticated,’ making even educated and experienced individuals vulnerable.”
Similarly, Island Sea Group targeted the “high net worth elderly population.” The founder of Island Sea Group, Xiong Xiong, is a popular internet celebrity with millions of followers, with his Douyin (TikTok) account highlighting him as “The Third Most Beautiful Person in Zhejiang, The Most Beautiful Retired Military Officer.”
Island Sea Group made significant efforts in serving the elderly, organizing health workshops regularly, providing free blood pressure tests, organizing events where senior citizens wrote couplets and had reunion dinners during Chinese New Year, and distributing noodles and vitamin tablets on their birthdays.