(Yicai Global) Aug. 10 -- Hillhouse Capital Group has refuted reports that its founder and chairman has been banned from leaving the country, a restriction imposed on people being investigated for a crime. The Chinese venture capital firm has reported the matter to the police and reserves the right to take legal action, The Paper reported today.

Zhang Lei, the 1,008th richest man on Forbes’ 2021 World’s Billionaire List with a personal wealth of USD3 billion, is not being prevented from going abroad, the report said, citing the Beijing-based company.

“Rumors from several channels claim that Zhang Lei from Hillhouse has been put under border control,” a Weibo account said yesterday.

Founded by Zhang in 2005, Hillhouse has backed a string of successful tech firms, including ride hailing giant Didi Chuxing, e-retailers JD.Com and Pinduoduo as well as short video platform Bilibili.

However, it is its investments in online educators that are now the source of controversy. A recent ban by regulators on extracurricular classes, their main source of income, to reduce the burden on school kids, has seen these stocks plunge. Yet Hillhouse was ahead of the curve and sold out its stakes in TAL Education Group, 17 Education & Technology Group and New Oriental Education & Technology Group months ago.

Editor: Kim Taylor