In mid December 2021, Wang Chaoyong, the founder of 10 billion private placement xinzhongli investment, was found to have lost contact, and it was reported in the industry that he was criminally detained by Chaoyang Branch of Beijing Public Security Bureau. Recently, the lost contact event reappeared the latest progress.
On January 7, xinzhongli announced that Wang Chaoyong had performed his duties normally and the operation of the company was normal. Previously, he cooperated with the public security organ during his loss of contact. It is worth noting that the information of China Securities Investment Fund Industry Association shows that at present, xinzhongli still has overdue unliquidated funds and funds in liquidation for a long time. In 2021, xinzhongli was also subject to regulatory penalties for many times. After Wang Chaoyong’s normal performance of his duties, if he deals with risk control loopholes and overdue products, it has attracted much market attention.
In mid December 2021, the news that Wang Chaoyong, founder of 10 billion private placement xinzhongli, lost contact spread widely.
According to insiders, Wang Chaoyong was criminally detained by Chaoyang Branch of Beijing Municipal Public Security Bureau on suspicion of job occupation on November 30, 2021. Subsequently, xinzhongli urgently issued a suspension announcement and said that according to media reports, Wang Chaoyong, the actual controller of the company, lost contact. The relevant situation has yet to be confirmed, and the company will complete further information disclosure according to the confirmed information. In order to avoid the fluctuation of the company’s share price, the trading of the company’s shares will be suspended from December 16, 2021.
During the suspension, xinzhongli made several announcements on the loss of contact of the actual controller.
On January 5, 2022, xinzhongli also announced that the company had verified the relevant information for the relevant reports of the loss of contact of Wang Chaoyong, the actual controller and chairman of the company. As of May 5, the company continued to contact the actual controller of the company through various ways, but has not yet made effective contact with it. The company has also contacted the public security organ for many times, but so far, the public security organ has not given the company a formal reply on the relevant information of Mr. Wang Chaoyong.
However, in the past two days alone, xinzhongli contacted Wang Chaoyong and announced the latest progress.
On January 7, xinzhongli announced that the company had contacted Mr. Wang Chaoyong, the actual controller, to confirm that he would cooperate with the public security organ during the loss of contact. As of the disclosure date of this announcement, Wang Chaoyong has performed his duties normally and the operation of the company is normal. The company will continue to pay attention to the progress of the above matters and perform the obligation of information disclosure in a timely manner in strict accordance with the provisions of laws and regulations.
Public information shows that Wang Chaoyong, the founder of xinzhongli, has been full of legends all his life. He is not only known as the “Chinese prodigy on Wall Street”. After founding xinzhongli capital group in 1999, he has successively invested in listed companies outside China, such as Baidu, Sohu, Huayi Brothers Media Corporation(300027) , Aston Martin, AsiaInfo technology, Easyhome New Retail Group Corporation Limited(000785) , 1 pharmaceutical network, langjin technology, meinian health and so on. In 2015, xinzhongli, founded by Wang Chaoyong, was listed on the new third board and became the “first share of Chinese returnee venture capital”.
However, the legend of Wang Chaoyong could not be written all the time.
In May 2016, Wang Chaoyong acquired 11.1% of the shares of Shenzhen Hifuture Information Technology Co.Ltd(002168) with a cash of 1.65 billion yuan, with a premium of 113.7% compared with the share price of Shenzhen Hifuture Information Technology Co.Ltd(002168) of 8.89 yuan at that time. According to industry insiders, the move was to backdoor listing and create the hot “Jiuding model” at that time.
It is reported that at that time, Wang Chaoyong’s acquisition funds were basically borrowed, of which 1.2 billion yuan was financed by xinzhongli through the asset management plan of China Merchants wealth Asset Management Co., Ltd., and 315 million yuan was borrowed by xinzhongli from Beijing Hengyu Tianze Investment Management Co., Ltd. at an interest rate of 12%, that is, he leveraged more than 1.6 billion yuan with only about 100 million yuan.
However, after Wang Chaoyong borrowed more than 1 billion yuan and held Shenzhen Hifuture Information Technology Co.Ltd(002168) at a high premium, the company’s share price fell year after year. When xinzhongli’s company acquired Shenzhen Hifuture Information Technology Co.Ltd(002168) , the latter’s share price once rose to more than 15 yuan. However, since 2017, Shenzhen Hifuture Information Technology Co.Ltd(002168) share price has been declining. As of the close of this Friday, Shenzhen Hifuture Information Technology Co.Ltd(002168) share price has fallen to 4.36 yuan / share. Compared with the original purchase price of Wang Chaoyong, it has been halved.
In this context, Wang Chaoyong, whose capital chain is broken, has experienced several position bursts.
On December 3, 2020, Beijing xinzhongli Puxin equity investment center (limited partnership), wholly owned by xinzhongli, was reduced by Jianghai securities through the centralized bidding trading system of Shenzhen stock exchange due to touching the minimum standard for maintaining the guarantee proportion agreed in the margin trading contract, accounting for 0.09% of the total share capital of the listed company.
On January 28, 2021, due to touching the minimum standard for maintaining the guarantee proportion agreed in the margin trading contract, 14.22 million shares held by Zhongchi Huicheng were closed by capital securities, accounting for 1.77% of the total shares of the company.
At the same time, xinzhongli investment is also heavily in debt.
according to the semi annual report of xinzhongli in 2020, the liabilities due within one year of xinzhongli, including short-term loans, notes payable and other payables, are as high as 1.64 billion yuan.
According to the public information of China Fund Industry Association, xinzhongli has many situations, such as low account opening rate of directional disclosure by investors, overdue funds and funds in liquidation for a long time.
In addition, not only the investment level “suffered heavy casualties”, the compliance of xinzhongli investment also seems to be full of problems.
In 2021, xinzhongli was punished by Beijing Securities Regulatory Bureau, Shenzhen Securities Regulatory Bureau, Qingdao securities regulatory bureau and the National SME share transfer system for many times. The violations include: taking advantage of the fund’s property or position to seek benefits for people other than themselves or investors and transfer benefits; Violating the provisions of the fund partnership agreement and pledging the fund property to provide financial support to related parties; Promise minimum return to investors; There are many major lawsuits and arbitrations that are not disclosed in time.
“Wang Chaoyong is indeed a well-known figure in the field of equity investment, but as a private placement manager, there must be a problem with so many illegal operations and even \’gambling\’ with 16 times of leverage. The bottom line of compliance is the \’lifeline\’. The industry and investors are paying close attention to how he will solve the capital dilemma and compliance loopholes in the future.” A person in the industry said frankly.
As of press time, xinzhongli has not issued an announcement to disclose the relevant actions of the company in the next step, and the reporter will continue to pay attention to the follow-up progress.
(source: Shanghai Securities News)
