Last week, the Chaoyang Public Security Bureau in Beijing announced that it would file a case for investigation of the "Zhongzhi system" and take criminal coercive measures against Xie Moumou and other criminal suspects. For a time, the chairmen of the two A-share listed companies controlled by the "planting system" also lost contact one after another. Specifically, the announcement of major events mentioned that the company could not get in touch with Chairman Ma Hongying;*ST Tianshan also announced that it could not get in touch with Chairman Ma Changshui. The common feature of these two companies is that they are both controlled by the "middle planting system". It is inevitable that people will speculate whether the chairman was arrested or they fled?
As an American early education brand with a glorious history in the Chinese market, MGM once had 600 stores across the country. However, with the changing environment and frequent negative news, the company has encountered difficulties, and stores in Guangzhou, Shanghai and other places have closed. Many clients were unable to get tuition refunds and had to join the ranks of advocacy. The company's operating performance also declined sharply with the advent of the wave of store closures, and it lost money for three consecutive years. The chairman's disappearance is the icing on the cake for the affected investors and customers.
ST Tianshan is also facing a similar dilemma, and its *** is marked with the word "*ST", indicating that it is in a difficult situation. Ma Changshui, the chairman of the company, also lost contact. According to relevant reports, due to the decline in the company's performance and the news of the loss of contact with the chairman, the stock price of *ST Tianshan was once **. Like investors who have purchased trust products issued by Zhongzhi System, customers who have purchased the company's courses are also faced with the problem of protecting their rights and are unsure when they will get their course fees back. While the cost of purchasing a course is relatively small compared to the loss to investors, the uncertainty is undoubtedly unsettling.
In the end, were these missing chairmen arrested, or did they choose to flee?It may be that the "planting system" was filed and taken away for investigation. The Chaoyang Public Security Bureau's report mentions that "a number of criminal suspects such as Xie XX have been taken criminal coercive measures". Considering that they are all core executives of the "Zhongzhi system", even if they are not subject to criminal coercive measures, they may need to go to the police station to assist in the investigation. Another possibility is that they chose to "run away". In either case, it brought a bigger blow to the troubled Zhongzhi Group and sparked various rumors in the market.
1. The decline of Meijim and the loss of contact with the chairman
As an early education brand, MGM was once very brilliant in the Chinese market. However, with the changing environment and a series of negative headlines, the company fell into trouble. Many stores were closed one after another, and many customers failed to receive refunds, leading to customer activism. The company's operating performance also declined sharply, losing money for three consecutive years. In this case, the loss of contact with the chairman has undoubtedly brought more worries to the affected investors and customers.
2. *ST Tianshan's predicament and the loss of contact with the chairman
Similar to Meijim, *ST Tianshan is also facing declining performance and difficulties. The company's *** has the word "*st" in it, indicating that it is in a difficult situation. The loss of the chairman has only exacerbated investors' concerns about the company. According to reports, due to the decline in the company's performance and the news of the loss of contact with the chairman, the share price of *ST Tianshan was once **. At the same time, customers who have purchased the company's courses are also facing the dilemma of defending their rights, and they are not sure when they will be able to get their course fees back.
1. Changes in the property market
The core strategy of Zhongzhi is to raise capital from investors and then invest it in various assets. However, with the changes in the real estate market and many developers falling into a cash flow crisis, some projects have stalled or even failed to sell for various reasons, resulting in borrowers being unable to repay their loans. This also led to Zhongzhi's inability to redeem the trust products, which eventually led to the explosion of the project.
2. Fluctuations in **
In addition to investing in real estate projects, Zhongzhi Group will also buy equity in listed companies, cash out and earn income after mergers and acquisitions and asset restructuring. However, due to the volatility of A-shares** and Zhongzhi's poor stock selection vision, the stock prices of some listed companies have been reduced. This makes it impossible for ZZ to cash out and reduce its floating losses.
In general, the difficulties and problems encountered by the planting system mainly stem from two aspects: changes in the property market and fluctuations. These two factors led to Zhongzhi's inability to redeem trust products and cash out the equity of listed companies, which ultimately led to the project explosion and operational difficulties. This is also one of the reasons why the chairmen of the two listed companies controlled by the planting system have lost contact.