Recently, there have been “loopholes” in the capital management and regulatory institutions, but there have been “loopholes” in the capital management industry.
Among them, Bai Bingyang, the fund manager, failed to be diligent in managing the operation of Boc International (China) Co.Ltd(601696) advantage manufacturing stock fund. On October 28, 2021, when he failed to maintain cash not less than 5% of the net asset value of the fund or government bonds with a maturity date of less than one year, he was supervised with a warning letter.
Fund Jun found that on October 28, the net value of Boc International (China) Co.Ltd(601696) advantage manufacturing stock fund once fell by 7.06%. Some insiders speculated that the redemption of the fund on the same day led to a decline in the proportion of cash assets.
In addition to the above fund managers, Zhongtai Securities Co.Ltd(600918) (Shanghai) Asset Management Co., Ltd. was also ordered to make corrections due to the unreasonable valuation method of bonds invested in individual asset management plans.
Let’s see what happened.
some fund managers have received the supervision warning letter
On the evening of March 17, a warning letter for fund investment researchers was posted on the official website of Shanghai Securities Regulatory Bureau, which attracted the attention of the industry.
The decision on Issuing warning letters to the white ice ocean states:
After investigation, Bai Bingyang, as the fund manager of Boc International (China) Co.Ltd(601696) advantage manufacturing equity securities investment fund, failed to be diligent in the process of fund management and operation, resulting in the fund’s failure to maintain cash not less than 5% of the net asset value of the fund or government bonds with a maturity date of less than one year on October 28, 2021.
The above problems violate the provisions of Article 28 of the measures for the administration of the operation of publicly offered securities investment funds (Order No. 104 of the CSRC, hereinafter referred to as the measures for the administration of the operation of publicly offered funds).
According to item 8 of Article 56 of the measures for the administration of the operation of publicly offered securities investment funds, our bureau has decided to take administrative supervision measures to issue warning letters to you. You should carefully study relevant laws and regulations, strictly abide by your post responsibilities, be professional, prudent, diligent and responsible, strengthen the awareness of law-abiding and compliance, and earnestly safeguard the interests of fund unitholders. Our bureau will pay close attention to your performance of duties in daily supervision.
If you are not satisfied with the supervision and administration measures, you can apply to the China Securities Regulatory Commission for administrative reconsideration within 60 days from the date of receiving the decision, or you can bring a lawsuit to the people’s court with jurisdiction within 6 months from the date of receiving the decision. During the period of reconsideration and litigation, the above supervision and management measures shall not be suspended.
fund net worth has fallen by more than 7% in one day
According to public information, Bai Bingyang is currently the fund manager of Boc International (China) Co.Ltd(601696) company. She worked at Deloitte Touche Tohmatsu from 2005 to 2009; From 2009 to 2012, he worked in the Shanghai Research Department of Taiwan Qunyi securities. In February 2012, he joined BOC International Securities Co., Ltd. and successively served as the sponsor of BOC International Securities China Red No. 1 and China Red foundation Jinbao investment.
In August 2015, BOC International Securities obtained the qualification of public fund management business. In April 2016, BOC Fund issued the first public fund – Boc International (China) Co.Ltd(601696) Principal Guaranteed No. 1 hybrid fund (now renamed Boc International (China) Co.Ltd(601696) value selection fund). Bai Bingyang served as the first fund manager. Since then, she has also managed Boc International (China) Co.Ltd(601696) auspicious hybrid funds.
At present, she manages four funds, including Boc International (China) Co.Ltd(601696) Jurui hybrid, Boc International (China) Co.Ltd(601696) value selection, Boc International (China) Co.Ltd(601696) health industry, Boc International (China) Co.Ltd(601696) advantage manufacturing. The fund types include partial debt hybrid, flexible allocation hybrid and common stock fund, with a total management scale of 632 million yuan.
The Boc International (China) Co.Ltd(601696) advantage manufacturing stock fund, which has the problem of negligence in operation, was established on July 8, 2021. As of March 17 this year, the latest net value is 0.8633 yuan, down 13.67% since its establishment. However, since this year, the net value of the fund has fallen by less than 10%, ranking in the top quarter of similar funds, and its performance is relatively resistant to decline.
Fund Jun noted that on October 28, 2021, that is, the regulatory found that Boc International (China) Co.Ltd(601696) advantage manufacturing stock fund failed to maintain cash of no less than 5% of the fund’s net asset value or the trading day of government bonds with a maturity date of less than one year, the fund’s net asset value fell sharply by 7.06%. Some insiders speculated that the proportion of cash assets on that day was lower than 5% of the fund’s net asset value or was due to redemption. Netizens on Weibo also talked about:
From the perspective of fund positions, the top ten heavy positions of the fund at the end of the third quarter were mostly coal, petroleum, chemical and other resource stocks. On October 28, the top ten heavy positions at the end of the third quarter fell by an average of 6.41%, and the CSI coal index also fell by more than 6% in a single day on that day.
Zhongtai Securities Co.Ltd(600918) asset management due to unreasonable bond valuation method
was ordered to take corrective measures
Not only the investment researchers, but also Zhongtai Securities Co.Ltd(600918) (Shanghai) Asset Management Co., Ltd. has recently received regulatory fines.
In the decision on ordering Zhongtai Securities Co.Ltd(600918) (Shanghai) Asset Management Co., Ltd. to take corrective measures, Shanghai Securities Regulatory Bureau said that Zhongtai Securities Co.Ltd(600918) asset management had the following behaviors in the process of carrying out business:
First, the company’s individual asset management plans still use the historical closing price valuation for a long time when the bidding trading of the invested bonds has stopped, and the valuation method is unreasonable. The above situation does not comply with Item 2 of Article 2 of the guiding opinions of China Securities Regulatory Commission on the valuation business of securities investment funds (CSRC announcement [2017] No. 13), and violates the provisions of Article 43 of the measures for the administration of private asset management business of securities and futures operating institutions (CSRC Order No. 151, hereinafter referred to as the measures for the administration of private asset management).
Second, the related party transaction system is not perfect, and the pricing method of related party transactions is not standardized in the system. The above situation violates the provisions of paragraph 1 of Article 66 of the measures for private placement management.
According to the provisions of Article 78 of the measures for the administration of private placement, the CSRC now decides to take administrative supervision and management measures to order it to make corrections.
Zhongtai Securities Co.Ltd(600918) general manager of asset management, Xu Jiandong, general manager and member of the company’s Valuation Committee, and Wang Hongyi, chief compliance officer and member of the company’s Valuation Committee were also issued warning letters.
