Fourth, the amount of money that can be recovered by the purchaser is quite limited. In Chuanxin's redemption plan, in addition to the tiered redemption and limited net principal, there is also a very key part - "net value discount compensation". According to the plan, if the investment income obtained by investors through investment in trust products issued by Chuanxin since 2018 exceeds 2 million yuan, the excess part will be deducted at a rate of 50%. To put it simply, the higher the investor's investment income, the more the amount will be deducted. This means that even if an investor invests a large amount of principal, it is difficult to get a corresponding return.
For high-net-worth clients, this scheme is undoubtedly a heavy blow. They usually invest a larger amount and make more gains in a short period of time, so the amount deducted will increase accordingly. In contrast, the impact of small investors is relatively small. However, this does not mean that they will be completely spared. Although their investment income does not exceed the limit of $2 million, their principal and income may still be partially deducted. Overall, the amount that buyers can really get back is quite limited and far from what they initially expected.
Fifth, large investors have become the biggest target of "wool picking". In the redemption plan of C Credit, the so-called "limited net principal" is actually a strategy adopted to protect the rights and interests of small and medium-sized investors. Net principal refers to the difference between the total amount of accumulated deposits and the total amount of accumulated withdrawals in the C Credit product. The plan stipulates that if the investment income obtained by investors through investment in trust products issued by C Credit since 2018 exceeds 2 million yuan, the excess part will be deducted, and less than 2 million yuan will not be affected. This means that only large investors with investment income of more than $2 million during this time period will be affected.
The introduction of this clause is actually to allow large investors to bear more losses, so as to protect the rights and interests of small and medium-sized investors. However, this will also lead to a significant reduction or no return on the investment of large investors. For example, if an investor invests $10 million between 2018 and 2020 and earns more than $2 million, he needs to deduct 50% of the excess amount according to the plan. This means that his investment income will be greatly reduced, and he may even lose money.
The above is the interpretation of the C credit redemption plan, which can be said to have brought great harm to investors. While the exact impact of the plan remains to be seen by time, as things stand, losses for investors are inevitable. Whether it is tiered payment, limited net principal or equity discount compensation, these options are all limiting the returns that investors can receive, and have even caused widespread criticism and resistance.
Why did the C credit redemption plan come up with such a plan that no one was satisfied with?This is the discussion in the second part. From the perspective of the top, they may be trying to save the company's interests as much as possible. However, this approach is undoubtedly irresponsible and fails to solve real problems. On the contrary, it will only exacerbate market instability and deal a bigger blow to investor confidence.
As for whether there is any reference significance for the future direction of Zhongrong, this is the discussion content of the third part. According to the available information and situation, the payment plan of C letter has undoubtedly brought great uncertainty to the future development of Zhongrong. Investors' confidence and trust in Zhongrong have been severely hit, which will make Zhongrong's operation and development in the future face greater difficulties. Therefore, Zhongrong needs to prudently assess the current situation, re-examine its own operation and management issues, strengthen risk control measures, and rebuild investor confidence.
In summary, the release of the C credit redemption plan has aroused widespread concern and doubts. Whether it is a tiered payment, limited net principal or equity discount compensation, it limits the return that investors can receive, resulting in inevitable losses for investors. Such an approach is not only disappointing, but also raises greater concerns about the stability and transparency of China's financial system. In the future, Zhongrong should pay attention to the interests of investors, strengthen supervision and risk control, and rebuild market confidence to avoid similar incidents from happening again.