Recently, it was reported that the Shenzhen intermediate people’s Court issued a consumer restriction order on Jinxin fund on February 17. According to relevant regulations, Jinxin fund and Yin Kesheng, the legal representative of Jinxin fund, shall not carry out nine categories of high consumption and consumption behaviors that are not necessary for life and work.
In this regard, the latest response of Jinxin Fund said, “the company has not received relevant consumption restriction orders recently.” The company also published relevant instructions on its official website, saying that at present, no consumption restriction order related to Jinxin fund and its legal representative has been queried on China’s executive information disclosure website. The company will maintain communication with the court and pay close attention to the progress of the incident.
Jinxin Fund:
has not received the relevant consumption restriction order
On February 21, some media reported that a consumption restriction order issued by the Shenzhen intermediate people’s Court on February 17 showed that the court filed a case of dispute over the execution of the contract of Jinxin fund applied by the execution applicant bank of China Asset Management Co., Ltd. on July 14, 2021, because Jinxin fund failed to perform the payment obligations determined by the effective legal documents within the period specified in the execution notice.
In accordance with relevant regulations, the court has taken measures to restrict consumption of Jinxin fund and Yin Kesheng, the legal representative of Jinxin fund, shall not carry out the following high consumption and consumption behaviors that are not necessary for life and work.
1. When taking the means of transportation, choose the second-class or above cabin of aircraft, train soft sleeper and ship;
2. High consumption in hotels above star level, hotels, nightclubs, golf courses and other places;
3. Purchase real estate or build, expand or decorate high-grade houses;
4. Rent high-end office buildings, hotels, apartments and other places for office;
5. Purchase vehicles not necessary for operation;
6. Tourism and vacation;
7. Children attend high fee private schools;
8. Pay high premium to buy insurance and financial products;
9. Other consumption behaviors that are not necessary for life and work, such as taking all seats of g-head EMU train and more than first-class seats of other EMU trains.
According to the consumer restriction order issued by the court, if the restricted high consumer carries out the above-mentioned prohibited consumption activities due to business necessity, it shall apply to the court for approval. If it violates the consumption restriction order and is verified to be true, it will be fined and detained in accordance with relevant regulations; If the circumstances are serious enough to constitute a crime, criminal responsibility shall be investigated according to law.
In this regard, the relevant person in charge of Jinxin fund responded that “recently, the company has not received the consumption restriction order or relevant documents from Shenzhen intermediate people’s court.”
Meanwhile, Jinxin fund also published relevant instructions on its official website today. According to the statement, “recently, Jinxin Fund Management Co., Ltd. has been concerned about the media reports on the consumption restriction order made by the court against our company and the legal representative. At present, no consumption restriction order related to our company and the legal representative has been queried on the China implementation information disclosure website. Our company will maintain communication with the court and pay close attention to the progress of the incident.”
As of press time, the reporter further logged into the China executive information disclosure network. In the information on restricting consumption personnel, the names of Jinxin fund and Yin Kesheng, the legal representative, have indeed not been queried.
According to public information, Jinxin fund was established in July 2015 and is a public fund management company approved by the CSRC. As China’s first public fund company with a management team as the largest shareholder, Jinxin fund management team holds a total of 35% and is the largest shareholder of the company.
The scale of Jinxin fund has doubled in 2021. As of December 31, 2021, the asset scale of public funds of Jinxin fund has reached 7.795 billion. The growth of fund scale is mainly due to the earlier layout of Jinxin fund in science and technology, consumption and other fields, and the continuous enhancement of core investment ability.
the previous cancellation order has been revoked
In fact, as early as last September, the Shenzhen intermediate people’s Court issued a consumption restriction order to Jinxin fund.
The consumption restriction order shows that on July 14, 2021, the court filed a case of dispute over the execution of Jinxin fund contract applied by the execution applicant bank of China Asset Management Co., Ltd. because Jinxin fund failed to perform the payment obligations determined by the effective legal documents within the period specified in the execution notice, the court took consumption restriction measures against Jinxin fund in accordance with relevant regulations, Restrict Jinxin fund and Yin Kesheng, the legal representative of Jinxin fund, from carrying out the following high consumption and consumption behaviors that are not necessary for life and work.
However, on September 29, Jinxin Fund published relevant instructions on its official website, saying that the “height limit” order of the company and its legal representative Yin Kesheng had been revoked.
Jinxin Fund announced at that time, “Jinxin fund established an asset management plan according to law in 2017 and filed it with the fund industry association. The asset management plan was established as a channel product before the issuance of the guiding opinions on regulating the asset management business of financial institutions. Later, due to civil disputes in the operation of the asset management plan, according to According to Article 8 of the guiding opinions on regulating the asset management business of financial institutions and Article 11 of the measures for the administration of private asset management business of securities and futures operating institutions, the manager shall exercise litigation rights or perform other legal acts on behalf of the interests of investors, Therefore, Jinxin fund participated in the relevant arbitration proceedings against the asset management plan on behalf of the asset management plan as the respondent. “
At the same time, Jinxin Fund said, “according to the relevant arbitration award and the court execution ruling, the actual object to be executed is the asset management plan managed by Jinxin fund, and the executed property is the product property of the asset management plan. At present, the contract of the asset management plan has expired and has entered the product liquidation process.”
In addition, in response to the “height limit” order, Jinxin Fund said in its announcement: Recently, our company learned through China executive information disclosure network that in the process of implementing the arbitration award of the asset management plan and relevant counterparties, the court made a consumption limit order for our company and the legal representative.
Jinxin also said, “After knowing this information, our company promptly explained to the court that the object of relevant arbitration is the asset management plan managed by our company, and the effective isolation between the product property of the asset management plan and our own property in accordance with laws and regulations. At present, the court has made a decision to revoke the relevant consumption restriction order, And revoked the relevant consumption restriction order information on China’s executive information disclosure online. “
Latest progress of channel product bond default event
It is understood that the source of the consumption restriction order previously executed by Jinxin fund and its legal representative was due to the bond default of the previous asset management plan.
According to a previous civil judgment, in April 2017, Jinxin Huaxia No. 1 asset management plan under Jinxin Fund (hereinafter referred to as Jinxin No. 1) bought the “17 Macrolink Culturaltainment Development Co.Ltd(000620) controlled mtn001″ bonds issued by new China Union Holdings Ltd(000036) Co., Ltd. (hereinafter referred to as Macrolink Culturaltainment Development Co.Ltd(000620) company. The issuance scale of the bonds was 1 billion yuan, and Jinxin No. 1 held 601 million yuan, accounting for 60.1%.
Due to the failure to pay as scheduled, Jinxin fund took Macrolink Culturaltainment Development Co.Ltd(000620) company to court and asked Macrolink Culturaltainment Development Co.Ltd(000620) company to repay the principal and relevant interest of the bond. After being rejected in the first instance, Jinxin fund filed a lawsuit again.
In the judgment of the second instance, the court supported part of the appeal request of Jinxin fund, revoked the civil judgment of the first instance, and confirmed that the bond contract reached between Jinxin fund and Macrolink Culturaltainment Development Co.Ltd(000620) company on the first phase of 2017 medium-term notes had been terminated on August 19, 2020. Macrolink Culturaltainment Development Co.Ltd(000620) the company shall pay 537 million principal and corresponding interest within 10 days after the judgment takes effect.
For the latest progress of this case, Jinxin fund’s latest response pointed out that “at present, the court has made a second instance judgment on the bond dispute between the asset management plan and the bond issuer, requiring the issuer to pay the principal and corresponding interest in time after the judgment takes effect. Our company will adopt various legal measures to urge the bond issuer to implement the relevant payment obligations in time in accordance with the judgment of the court.”
Jinxin fund also said that in accordance with laws and regulations, the asset management plan operates independently and property is isolated from the company’s public funds and other asset management products. The investment behavior and litigation of the product will not affect the investment operation of other products.
In this regard, the relevant person in charge of Jinxin Fund said, “the lawsuit between the company’s products and bond issuers has come to an end, and the court has also made a final judgment on the dispute. In the future, our company will continue to adhere to the business philosophy of ‘customer interests first’ and provide investors with richer and high-quality asset management services.”
