Recently, we obtained a judgment from an investor on a dispute over a product claim of Zhongrong Trust (Civil Judgment on the Business Trust Dispute between Han ** and Zhongrong International Trust ***, Case No.: (2021) Jing 0102 Min Chu No. 24974). In this case, Zhongrong Trust lost the case, and the investor dramatically reversed from losing his capital at the time of withdrawal to winning 75% of the principal in the judgment. We have analyzed the key points of this winning judgment as follows for investors' reference:
First, the product situation.
For structured equity products, some investors subscribe to Class A shares with relatively low risk and preferential exit, and some investors subscribe to Class B shares with excess returns but inferior exits, and the total scale of funds raised by trust products is about 200 million yuan (of which Class A shares are about 1.).600 million yuan, class B share of about 40 million yuan), almost all of which was used to invest in a high-risk Hong Kong stock**.
Second, the market situation.
The Hong Kong ** market implements the T+0 trading mechanism, with no limit on the rise and fall, strong speculation, and in recent years, the long-term downturn, the trust property may all be lost, and the final liquidation report The cumulative loss of the trust plan exceeds 81 million yuan.
3. Investors.
1) The claimant investor subscribed for the high-risk and high-return Class B shares, and then Zhongrong Trust held a general meeting of the beneficiaries of the trust plan and decided to extend the trust plan, and the Class B share investors could not redeem and withdrew. Two and a half years later, the trust property was liquidated, and the investor lost all the 3 million principal when he withdrew, and decided to sue.
2) Most investors subscribed for the preferential withdrawal of Class A shares, and then Zhongrong Trust held a general meeting of beneficiaries of the trust plan and decided to extend the trust plan, and the investors of Class A shares could apply for redemption, choose to give up the right to sue, and receive the investment result of the loss of 32% of the principal and withdraw first.
4. Judgment information.
According to the court's judgment, Zhongrong Trust used almost all of the funds raised to invest in a high-risk Hong Kong stock**, and the investment behavior was found to constitute a breach of contract, and the court found that most of the 3 million principal lost by the investor was caused by the violation of contract of Zhongrong Trust, and Zhongrong Trust should pay about 2.24 million losses to the investor (the investor bears about 25% of the principal loss).
5. Proceeds of litigation.
Class A share investors who choose to redeem and exit will lose about 32% of their principal at the time of exit, according to the product and market conditions disclosed in the judgment. If you choose to file a lawsuit, according to the calculation method disclosed in the judgment (the trust plan invests 5% of the trust property in the underlying Hong Kong stock in accordance with regulatory requirements and presumes a full loss), the loss of principal should be very small, about 6%.
For Class A share investors, litigation is better than no litigation, and an additional 32%-6%=26% litigation income will be obtained.
For Class B share investors, litigation will be an additional 100%-25%=75% litigation income than no litigation.