Zhang Hai, the 31-year-old former president of Guangdong-based beverage group Jianlibao, has been detained on suspicion of embezzlement, police confirmed Monday.

Zhang was taken into custody last Thursday, but police did not apply for a formal arrest for several days because of the complexity of the case, said Foshan Municipal Public Security Bureau spokesman Huang Zhichao.

Huang also said that Zhang is not likely to be granted bail because his case was "too big."

Earlier reports said the Jianlibao Group, headquartered in Foshan, reported to police in September last year that Zhang had allegedly collaborated with several senior company officials to embezzle 700 million yuan (US$84.9 million).

Zhang was removed from his post as president in August last year.

A capital market mogul who controlled several listed companies, Zhang became chairman and CEO of the Jianlibao Group by buying an 80 percent stake in the company for 338 million yuan (US$41.0) in February 2002.

Under Zhang Hai's reign, Jianlibao diversified operations and made a series of equity investments until a halt in supplies of raw materials brought production almost to a standstill in the middle of last year.

(Shenzhen Daily March 30, 2005)