After more than two years of waiting, the chairman of Hongling Venture CapitalZhou ShipingSentenced to life imprisonment. He was found guilty by the court of fundraisingFraudand illegally absorbing deposits from the public, and the remaining 17 main offenders also face criminal penalties. This is because between 2009 and 2021, Hongling Venture Capital illegally absorbed about 109 billion yuan of public deposits through its platform, involving more than 480,000 people. Zhou Shipinget al. with false targetsIllegal fundraising, using high interest and "Ponzi **" method to deceiveInvestments, resulting in a huge loss of wealth to the public.
Hongling Ventures is illegally absorbing deposits from the public. Over the past decade or so, Hongling Ventures has issued false financing targets through its platform, promising high returns. Zhou Shipingand others use false targets such as "consumer wealth management", "debt replacement", and "red profit treasure" to implementIllegal fundraising。Most of the proceeds are used to repay the principal and interest due, to keep the company running, and to squander by executives, which is illegal and harmfulInvestmentsinterests.
Zhou ShipingThe proposed principal and interest advance payment model is used by Hongling Venture Capital to dispel itInvestmentsis a means of doubt. Originallyp2pIt is a person-to-person lending model, which realizes the direct docking of funds through the Internet platform. However, the principal and interest advance payment model proposed by Hongling Venture Capital transfers the risk to the platform and letsInvestmentsThere is no need to take risks. This is a false guarantee that is essentially brokenp2pThe essence of the . Investmentsoverlooked the important question of where these advances would come from. When the company encountersBad debtsWhen it is not possible to cover all risks, it can only be maintained by continuously filling the funding gap through "Ponzi **".Investmentsinterests, which is further exacerbatedInvestmentsrisk.
p2pThe industry has caused a huge disaster in China. Over the past decade or so, China'sOnline loansThe industry is thriving, but it is poorly regulated. Hongling Venture Capital and a series of othersp2pThe emergence of the platform makes people thinkInvestment and financial managementThere is no risk. Many people put their money away at risk in order to earn interestInvestmentsThereinto. However, due to the imperfection of China's personal credit system, it leadsp2pThere are great risks in the industry. With the help ofp2pIn the industry, some unscrupulous people take advantage of high returns to attract countless peopleInvestmentsReachedIllegal fundraisingpurpose. Therefore,p2pThe industry becomes ChinaSocialHuge catastrophes, giving hundreds of millionsInvestmentshas brought huge losses.
The verdict of Hongling Venture Capital is only the first instance, and the official will return it in accordance with the procedures in accordance with the lawInvestmentsThe insufficient part of the funds will continue to be toZhou ShipingAccountability. As forInvestmentsWhether the funds can be recovered still needs to wait for further official action. At present, the relevant parties are making every effort to recover the funds, equity, real estate, etc. involved in the case. However, considering the sheer size of Hongling Ventures, it is necessary to fully recover everythingInvestmentsmay take a considerable amount of time. InvestmentsYou need to be patient and keep an eye on what happens. At the same time, the regulatory authorities also need to improve their rightp2pThe supervision of the industry has strengthened the shadowBanksto avoid the recurrence of similar incidents and protect the legitimate rights and interests of the public.
In conclusion, the case of Hongling Venture Capital sheds light on Chinap2pPoor regulation of the industryInvestmentsThe problem of insufficient risk awareness. This is for youInvestmentsWho,Financeindustry and the wholeSocialis a very serious warning. Only by strengthening supervision, improving risk identification capabilities, and establishing a sound credit reporting system can we effectively avoid the recurrence of similar incidents.