Fuxi allegedly plowed the funds into a toll road linked to the city's new Formula 1 race track and into skyscrapers including Tomorrow Square, the 55-story mega-commercial complex, Caijing reported.
Also detained were Fuxi founder and former Shanghai Electric Group director Zhang Rongkun, reported by Forbes financial magazine to be China's 16th-wealthiest businessman in 2005, and QinYu, former head of Shanghai's Baoshan district.
Fuxi's controlling shareholder, Shanghai Feidian Investment Development Ltd., is being sued by the company managing the pension funds, according to the Far East Credit Rating Co.