Towards the end of the year, there were problems with financial products.
Recently, Haiyin Wealth, known as the "third largest wealth management company in China", reported that it had stopped paying. Subsequently, Hywin Wealth admitted that the wealth management was overdue, and said that it was sorting out the existing business and "will give investors relevant plans before the end of the month".
According to the data, Haiyin Wealth belongs to Haiyin Holdings, a U.S.-listed company, and behind it is the "Haiyin System" jointly built by Han Hongwei and his son Han Xiao. Immersed in the financial industry for many years, Han's father and son are worth a lot of money. According to the "2023 Hurun Report", Han Hongwei and Han Xiao's father and son have a wealth of 6 billion yuan, ranking 1008th, and they are the "richest people" in Yongcheng, Henan.
The mountain rain is coming, and the wind is full of buildings. Since December 13, the share price of Hywin Holdings has continued to be **, and as of December 22**, the US stock Hywin Holdings has accumulated **5965%, "Haiyin" A-share listed company rock shares fell 2104%。
Why does it happen that it is difficult to redeem?What's wrong with Hywin Wealth?
Figure Worm Creative.
"The money can't be redeemed".
Ms. Wu from Zhejiang first came into contact with Hywin Wealth in the fall of 2022, when she was introduced by a friend and participated in Hywin Wealth's corporate activities.
The scale is large, and there are many regular customers, all of whom say that the product is worry-free and stable," Ms. Wu told China News Weekly. Moreover, her financial advisor has worked in Hywin for 8 years, so she knows the roots. Based on trust, Ms. Wu began to purchase Haiyin Wealth's quasi-fixed income products in November 2022.
On December 5, 2023, a 500,000 yuan product due on December 1 was successfully redeemed, but on December 12, another 1 million yuan product could not be redeemed," Ms. Wu said.
After the payment problem, the financial advisor told Ms. Wu that the quasi-fixed income products that expired after December 5 could not be redeemed. "I didn't expect something to happen this time, I don't have high requirements, as long as I can get most of the principal. Ms. Wu couldn't hide her anxiety, after all, 1 million yuan is not a small amount for most families.
In fact, since December, there has been market news that the liquidation maturity time of Hywin wealth products has been extended. In this regard, Hywin Wealth "dumped" the bank and said that December belonged to the peak interest payment period for fixed income products, which led to the extension of the settlement time.
However, the paper couldn't hold the fire, and the official breach of contract still came.
On December 14, Hywin Holdings stated in the deferred redemption announcement that there were redemption problems in some asset-backed products previously distributed by the company, and the asset managers of these products could not reach a deferred redemption agreement with relevant customers. While the Company is only acting as a distributor of these asset-backed products, customers are now demanding reimbursement from the Company.
On December 18, Mr. Li, an investor, made a news announcement of Hywin Wealth, with the text "Headache" in the circle of friends. The nearly one million funds placed in Haiyin's wealth are almost all his savings.
There are also several investors who said that "all the belongings are in it, and they are all money prepared for their children", "I feel sorry for him when I look at the child, and I have lost the money for his study abroad".
China Newsweek interviews found that investors can invest in billions to millions. According to reports, the current stock size of Haiyin wealth may be between 60 billion and 70 billion yuan.
It is worth noting that at present, the deferred payment of Haiyin Wealth is a non-standard fixed income product, and the redemption of standardized products such as cash will not be affected.
The so-called non-standard fixed income products, that is, non-standardized fixed income products, mostly have words such as "accounts receivable claims" and "project claims", such as "Rui Xiangran accounts receivable claims project I", "Yuchang No. 15 accounts receivable claims project b" and so on. A list of Hywin Wealth's internal products provided by investors shows that the investment yield of these products is in the range of 7%-10%, and the maturity is between 12-36 months.
Yu Fenghui, an economist and new finance expert, explained that the focus of non-standard fixed income products is "non-standard", which is not subject to strict public disclosure rules and has low information transparency.
Because it is not transparent, many investors choose Hywin out of trust: "Financial advisors have also bought a lot, and everyone believes in Boss Han (Han Hongwei)," an investor said.
As the chairman of Hywin Holdings, Han Hongwei directly holds 7116% stake.
"The richest man" Capital Bureau
As the richest man in Yongcheng, Henan, Han Hongwei is self-made and has a certain mystery.
In 1987, Han Hongwei retired from the army and changed jobs, gave up the iron rice bowl, and harvested the first pot of gold in the freight field. In 1997, he walked out of Yongcheng, Henan Province, and moved to Zhengzhou, the provincial capital, to do business related to automobiles and medical health.
In 2004, Han Hongwei initiated the establishment of the Henan Chamber of Commerce in Shanghai, and later established the Yushang Group on this basis. The regional chamber of commerce formed a similar credit platform to lend and mutual aid in the form of private lending, which allowed Han Hongwei to experience the "magic" of compound interest in financial business.
So far, Han Hongwei has gradually established a Haiyin Group integrating entity investment, financial services and commerce, and finally formed a well-known financial capital "Haiyin System".
At its peak, Han Hongwei and Han Xiao controlled nearly 1,000 companies through the "Haiyin system", and they were involved in non-core financial license businesses such as private equity, sales, small loans, guarantees, and factoring.
The rock shares that were affected in the redemption turmoil are an important part of the "Haiyin system" in A-shares. In 2015, Han Xiao took Wuniu** into the rock shares. Since then, after several turmoil, many acquisitions, and four changes to its name, Shanghai Guijiu was finally born. However, due to the trademark dispute of Guizhou Guijiu, a subsidiary of Heyanghe Co., Ltd., the abbreviation of ** is still retained as "Rock Shares".
As another important component of the "Hywin System", Hywin Wealth was established in 2006. According to the financial report of Hywin Holdings for the 2023 fiscal year, as of June 30, 2023, Hywin Wealth has 185 wealth management centers, 1,749 financial planners and 46,627 active customers in 91 cities across the country. From July 1, 2022 to June 30, 2023, the Company achieved a net income of RMB209.2 billion yuan, a year-on-year increase of 771%；Net profit of RMB12 billion yuan, a year-on-year decrease of 4901%。
In fact, as early as 2021, when Hywin Wealth had a postponement of payment, it caused the industry to be vigilant.
In May 2020, the "Wuniu Shanghai Midtown International Building Private Equity Investment**" was overdue, and investors said that only 9% of the principal of the product could be recovered, and the rest was postponed until February 20, 2021. At that time, Hywin Wealth stated that the liquidation plan had been launched before the expiration date of the series of products, and there was no violation of the relevant provisions on **management or **liquidation in the **contract.
Since then, the "Haiyin system" has experienced labor pains. In July 2021, its Wuniu** was disqualified as a private equity manager;In August 2022, Haiyin ** Branch was ordered to make corrections by the Fujian Securities Regulatory Bureau due to ** sales business violations and internal control problems.
On December 18, Han Hongwei appeared at the Hywin Wealth Consulting Reception Office located at No. 88 Hufa Road, Nanqiao Town, Fengxian District, Shanghai, to exchange information with investors.
According to the online biography**, Han Hongwei reassured investors: "I won't run, the company is in good condition and is running." And some investors questioned: "(The state) is very good, why can't it be redeemed?"”
On the issue of difficulty in cashing, China News Weekly repeatedly called the investor communication of Hywin Wealth** but did not get through, and the interview outline did not receive a reply.
Where does wealth management go from here?
Not only Hywin Wealth, but since the second half of 2023, there are more wealth management products that cannot be redeemed.
On September 15, Zhongrong Trust admitted positively through an official announcement for the first time: due to multiple internal and external factors, some of the company's trust products could not be paid on time.
On November 10, Wanxiang Trust announced that it had failed to receive the interest on the trust loan payable by the project company in the current period, and could not distribute the trust income of the current quarter to the beneficiaries, and its two products, "Health Education No. 2" and "Health Education No. 4", could not be redeemed.
In December, individual trust products such as "Rongyi Capital No. 007", "Stable Capital No. 206" and "Ruifu Capital No. 026" issued by Beijing Trust were overdue one after another.
Dong Ximiao, chief researcher of Zhaolian, told China News Weekly that most of the overdue trust products in recent years are real estate trust plans, and the reasons for overdue are related to changes in the international financial situation, changes in the real estate market and the trust company's own reasons.
Taking Hywin Wealth as an example, the industry generally believes that real estate is its background color. In March 2021, Hywin Holdings was listed on NASDAQ. In the prospectus, Hywin Wealth claims to be "the largest provider of real estate fixed income products in China". In FY2020, Hywin Wealth's private real estate products accounted for 818%。According to a number of ** reports, some market sources said that Haiyin Wealth is involved in real estate debts such as Evergrande and Sunac or reach 3 billion yuan.
So how should investors protect their rights and interests?In Dong Ximiao's view, investors can claim rights from the underlying asset debtor, repurchase obligor and repurchase obligation guarantor through the trust company. However, in general, the agency cannot pay rigidly, "the seller is dutiful, and the buyer is at his own risk".
Lawyer Huang Qirui, director of Beijing Quanrui Law Firm, suggested that investors should pay attention to retaining evidence during the investment process. When protecting one's own rights and interests, one should seek the help of professionals in a timely manner, so as to choose the most beneficial plan for oneself to protect one's rights.
First, it is possible to negotiate with relevant subjects;Second, you can file a complaint with the regulatory authority;Third, they may file a lawsuit with the court or apply for arbitration in accordance with the agreementFourth, if the relevant entity is suspected of committing a crime, it may report the case to the public security organs. ”
In 2018, the promulgation of the "New Regulations on Asset Management" brought great changes to the asset management industry, and non-standard assets were under pressure to be cleared. According to data from the China Trust Association, the trust industry reached a peak of 26 at the end of 201725 trillion yuan, and at the end of 2022, the trust industry was entrusted with the management of trust assets 2114 trillion yuan.
Among them, all kinds of "fake gold exchanges" are the hardest hit areas of illegal non-standard wealth management products. Since 2018, the regulator has cleaned up and rectified the "fake gold exchange" several times.
At the same time, third-party wealth management institutions represented by Hywin Wealth are also facing huge challenges, and the risk of their non-standard products has also attracted much attention. Hywin Holdings also mentioned in its FY2021 report that the company may be adversely affected if certain categories of products currently on the local gold exchange are restricted or prohibited.
Huang Shiyan, a researcher at Puyi Standard, believes that third-party wealth management institutions can establish a sound risk management system and process, properly handle the relationship between overall risk resolution and steady development, and explore multiple business models.
Taking Hywin Wealth as an example, the projects with delayed payment mainly come from the real estate industry, and third-party wealth management institutions should avoid excessive risk concentration caused by a single product in the process of business development. Huang told China News Weekly.
Of course, Hywin Wealth has also diversified and returned to industry in recent years. Han Hongwei put the transformation goal in the field of big health, and Hywin Wealth put forward the two-wheel drive strategy of "wealth + health".
In fiscal year 2023, Hywin Holdings' health management business achieved revenue of 87.84 million yuan, compared with 20The net income of 900 million yuan accounts for a relatively small amount, and the initial stage of operation is still in a loss-making state.
Now there is only about a week left before the given time of the redemption plan promised by Haiyin Wealth, and there is not much time left for the richest man in Yongcheng, Henan.
Resources. Haiyin Fortune retreated: more than 40,000 people were miserable by 60 billion yuan, and the products were suspected of self-financing and counterfeiting, December 22, 2023, NetEase Qingliu Studio.
The richest man in Yongcheng, Henan Province turned around with difficulty, December 21, 2023, at the city boundary.
Hywin wealth suddenly!, December 17, 2023, China ** Daily.
Routine loans, frequent insider trading!The Haiyin system, which controls thousands of companies, is in trouble, and some important platforms have been suspended, May 9, 2019, **Times.
Author: Yu Shengmei.