(Bloomberg) -- A Chinese hedge fund managing more than 2 billion yuan ($277 million) has stopped repaying investors seeking redemptions, and its controlling shareholder is missing, the Securities Times reported, citing unidentified people. 

Some investors of Zhejiang Ruifengda Asset Management Co. have reported the case to local police, the newspaper said in a report on its WeChat account Friday. Economic crime investigators in Shanghai sealed off the company’s office in the city, news outlet Yicai said in a separate report. 

Many of the investors were institutions including securities firms, the Securities Times said, citing an unidentified person. Another private fund tried to redeem its investment in Ruifengda in March but still has about 33 million yuan unpaid, according to the report, citing the client fund. 

Ruifengda representatives couldn’t immediately be reached for comment. 

Ruifengda was set up in 2016 and manages more than 3 billion yuan, according to its website. One of its products that invests in futures and derivatives returned 795% in less than two years through April 30, according to data compiled by Shenzhen PaiPaiWang Investment & Management Co. 

Read more: Hedge Fund Fraud Probe Raises Alarms for China Risk Managers

China is tightening scrutiny of hedge funds, with new rules unveiled last month raising the asset threshold and curbing their use of leverage and derivatives. The rules, set to take effect Aug. 1, are expected to weed out weaker and less compliant players. 

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