On the evening of December 1, the Shenzhen Securities Regulatory Bureau issued a decision on the administrative supervision measures for the private placement of Shenzhen Jianhong Times. Jianhong Times Company and the company's legal representative Chen Zhihui, general manager Li Xiaodong, and ** manager Zhao Yuanyuan were all taken administrative supervision measures of issuing warning letters. It is reported that Jianhong Times' products have achieved "52 times in 3 years", but in mid-August this year, the company's product net value was all removed from the shelves on a third-party platform, and then received a fine from the China **Investment **Industry Association on August 25, was given a warning, and fell into an investor report storm in late September. Finally, on October 17 this year, Jianhong Times resolved to dissolve. A warning letter was issuedAccording to the content of the decision on administrative supervision measures, after investigation, Shenzhen Jianhong Times Private Equity Management *** referred to as Jianhong Times) has the following circumstances in engaging in private equity business activities:
First, Jianhong Yingfu No. 5 Private Placement ** Investment ** and Jianhong Time No. 5 Private Placement **Investment ** failed to carry out investment transactions in accordance with the contract, and there were circumstances in which they failed to perform their duty of care and diligence;
The second is to promote the sale of private placements to individual investors whose risk identification ability and risk-bearing ability do not match
The third is the failure to disclose material information that may affect its legitimate rights and interests to the investors of Jianhong Yingfu No. 5 Private Placement ** Investment ** in accordance with the contract;
Fourth, some materials on the suitability management of private equity investors were not properly retained.
In accordance with the provisions of Article 33 of the Measures for the Administration of Private Placements, the Shenzhen Securities Regulatory Bureau decided to take administrative supervision measures of issuing warning letters to Jianhong Times, Chen Zhihui, Li Xiaodong and Zhao Yuanyuan. According to the decision, Chen Zhihui has served as the legal representative of Jianhong Times since January 10, 2017, and as an executive director of Jianhong Times from January 10, 2017 to April 29, 2021 and August 15, 2022, responsible for the company's operation and management, and is responsible for the company's above-mentioned violations. Since November 2020, Li Xiaodong has served as the general manager of Jianhong Times, responsible for the company's operation and management, and is responsible for the company's above-mentioned violations. Zhao Yuanyuan served as the manager of Jianhong Yingfu No. 5 Private Placement Investment** and Jianhong Time No. 5 Private Placement **Investment**, responsible for the investment operation of the private placement, and was responsible for the private placement ** failing to carry out investment transactions in accordance with the contract and failing to perform the duty of care and diligence. It has set a performance of "52 times in 3 years".According to the data of a private equity ** third-party distribution platform, Jianhong Times' products have achieved a performance of "52 times in 3 years" and increased by more than 40% in two months. Judging from public reports, the amazing performance of Jianhong Times has been widely concerned by the market for a long time, and the company also won the first strategic private equity championship in 2020 and is known as the "most bullish private equity". In August last year, Jianhong Times once again sparked industry discussions because the net value of one of its products rose 43 times in two years. At that time, it coincided with the rumor that "a number of ** managers were investigated for participating in OTC options", and the high return performance of Jianhong Times was also questioned, and there were rumors that many ** managers of the company were involved. According to reports, at that time, Jianhong Times responded that the reason for the relatively fast net value of one of its products was that it had seized the opportunity and had never participated in OTC options trading, and the product had not yet met the conditions for opening OTC options and other derivatives transactions. However, this year, the management of Jianhong's era began to be frequent. In mid-August, the net value of Jianhong Times' products was all removed from the shelves on a third-party platform. According to the relevant personnel of the third-party platform, the net value of the removal from the shelves is mainly due to the fact that the product information disclosure level may have doubts about the reported net value. At that time, Jianhong Times responded that the reason for the removal was that there were large differences between the company and the third-party platform on the standards and distribution of sales expenses and other expenses, and the net value of products on the other third-party platforms was still normal. On other third-party platforms, there are indeed outstanding performance of the company's products, but in the same period, there is also news that some products of Jianhong Times have suffered substantial losses and are going through liquidation procedures, including products that have risen 43 times in two years that caused heated discussions last year. On August 25, the China Investment Industry Association issued a disciplinary decision on Jianhong Times, and after investigation, the company failed to fulfill its information disclosure obligations to investors in a timely manner after its products fell below the stop loss line, and there were deficiencies in internal control management. In late September, Jianhong Times was caught in a storm of investor whistleblowing again. According to reports, the investor's whistleblower letter said that the risk control mechanism of Jianhong Times is in vain, and its net value has reached the stop-loss price of 0After 7 yuan, the stop loss was not stopped in time, and the final net value was only 0About 55 yuan. He also questioned the discriminatory treatment of ** manager, and the difference in income of different products managed during the year exceeded 170%. At the same time, it criticized Jianhong Times for selective disclosure of the net value of existing products, and most of the disclosures on third-party platforms were high-yield products. Moreover, the investor is not notified at the time of liquidation, compulsory liquidation and liquidation, and a detailed liquidation report is not provided, which violates the provisions of the contract and information disclosure. A reporter from China's ** newspaper has conducted an interview and investigation on the matters reported by investors. It is understood that for the matter of hitting the stop-loss line and not stopping the loss, Jianhong Times told investors at the end of July: "The ...... that did not clear the position at the first time is to better protect the interests of investors."We judge that the possibility of a significant increase in the future of this variety is very high. The significant differentiation in the performance of different products is due to the difference in investment scope and strategy, a relevant person from Jianhong Times said: "The customer has never asked whether the product he buys is a strategy with the masterpiece. As for the reasons for the dissolution, a relevant source from Jianhong Times revealed that the current management scale of the company is too small, and the income is difficult to cover the cost of talents. According to the official website of AMAC, Jianhong Times was established in May 2015 with a total management scale of 0-500 million yuan. The information updated on November 6 shows that the company has liquidated** more than 50 animals. Jianhong Times had submitted information on the change of senior management on November 1. Continue to supervise the standardized operation of private placement**It is worth noting that with the continuous development of the private equity industry, the supervision and self-discipline supervision of the association around the standardized operation of private equity are also becoming normalized. Since the beginning of this year, local securities regulatory bureaus have issued a number of administrative supervision measures for a series of non-standard operations such as the failure of private equity companies to disclose regular reports as agreed in the contract, failure to update and disclose material change information in a timely manner, holding on behalf of customers, and the company's supporting business premises and employees not meeting the basic requirements. AMAC has also issued a number of disciplinary actions against private equity ** in the case of irregular operation. According to incomplete statistics, since the beginning of this year, the association has issued more than 100 disciplinary decisions around private equity institutions and related individuals. Problems such as untimely information disclosure and updating, non-standard identification and risk assessment of qualified investors, non-standard filing of private placement products, illegal fund-raising and promised returns have become the hardest hit areas. As an important part of residents' investment and financial management, standardized operation is very important. A veteran private equity person said that in the early stage of the development of the private equity industry, investors' demands are more biased towards high returns, so it is easier for private placements to quickly "get out of the circle" by betting and increasing leverage. However, in recent years, the asset management industry has become more mature, and the competition in the private equity industry has become more intense. In recent years, there have been many former celebrity private placements that have fallen off the altar one after another. A number of private equity insiders believe that in the early stage of private equity development, managers' awareness of compliance and risk control is weak as a whole, and they are more inclined to bet on investment that can easily create performance myths, but this kind of concentrated investment brings many risks to managers. Once the risk concentration is exposed, it will quickly destroy the company's development foundation. Sticking to the bottom line of compliance and putting the interests of investors first should be the foundation of private equity. Editor: Wang Yin.