P2P storm has not stopped, and the highly concerned Hongling venture capital case has made the latest progress.
according to the investigation of the procuratorial organ, Zhou Shiping, founder of Hongling venture capital, and others involved in fund-raising have accumulated 516800 participants, illegally raised 139.5 billion yuan, resulting in 119600 fund-raising participants’ principal loss of 16.388 billion yuan
according to the Shenzhen Municipal People’s Procuratorate on April 14, Zhou Shiping and others illegally raised funds online and offline from unspecified public by using the “Hongling venture capital”, “investment treasure” online loan platform and the “Hongling capital offline financial management” project. The absorbed funds were used to repay the principal and interest, acquire listed companies, buy and sell securities, futures, invest in equity and borrow from abroad. Some of the funds were used by Zhou Shiping to buy real estate Repayment of personal debts, etc. Recently, it has been transferred for examination and prosecution
It is understood that as early as July 2021, Zhou Shiping had been taken criminal coercive measures by the police; On November 24 of that year, Shenzhen Futian police issued a notice that Zhou Shiping and other 74 people were arrested on suspicion of fund-raising fraud and illegal absorption of public deposits. Thus, the once “leading brother of online loan” officially ended.
According to the disclosure on the official website of Hongling venture capital, as of the end of July 2021, Hongling venture capital platform has implemented 53 cashing arrangements, with a total of 2.548 billion yuan cashed, including 36.6 million yuan for small cashes, 7.2 million yuan for special hardship cases, and 15.837 billion yuan to be cashed. In other words, since 2019, the amount of cashing is only one tenth of the overall scale. The building finally collapsed, leaving nearly 120000 investors with a loss of about 16.4 billion yuan.
suspected of illegally raising 139.5 billion yuan, Zhou Shiping was sued
Hongling venture capital is one of the earliest P2P companies in Shenzhen. It was founded in 2009. The trading scale of its platform was more than 450 billion yuan at the highest time, and the cumulative lender was more than 2.74 million. The scale is much larger than the previous platforms such as group loan network (130 billion yuan) and Shanlin Finance (75 billion yuan). Therefore, it is also known as the “leading brother” of online loan platform.
However, it is also the first group of players. Although they are famous for “net worth standard” and “large amount standard”, they have attracted many investors by relying on the full advance mode, but they are also the first to expose a large amount of non-performing loans, and there was a risk of overdue “Thunderstorm” as early as 2015.
On July 27, 2017, Zhou Shiping, who was deeply in bad debt and debt crisis, issued a document in Hongling community, saying that he was neither optimistic about online loan business nor good at online loan business, and planned to liquidate within three years. As a former head player, this move caused an uproar in the industry. Since then, for several years, Hongling venture capital kept reporting the progress of cashing. However, the asset disposal failed to save the crisis, let alone cashing to investors as agreed.
In July 2021, the listed company Suna Co.Ltd(002417) announced that Zhou Shiping, the controlling shareholder and actual controller of the company, had been taken criminal coercive measures by Futian branch of Shenzhen Public Security Bureau. Subsequently, Suna Co.Ltd(002417) announced that the shares held by Mr. Zhou Shiping, the controlling shareholder of the company, and those acting in concert, accounting for 13.53% of the total share capital of the company, had been frozen by the judiciary.
On November 24, 2021, Shenzhen Futian police issued a notice that Zhou Shiping and other 74 people were arrested on suspicion of fund-raising fraud and illegal absorption of public deposits.
The building finally collapsed. Nearly 9 months later, the people’s Procuratorate of Shenzhen City reported on April 14th this year that eighteen suspect Zhou Shiping and others were suspected of raising funds and illegally absorbing public deposits. Recently, the Futian branch of Shenzhen Public Security Bureau was transferred to the hospital for examination and prosecution.
The investigation authorities confirmed that the suspect Zhou Shiping and others used the “Hongling venture capital” investment credit network platform and the “Hongling capital line financial management” project to illegally raise funds to the public under the specific public line and line. The total number of fund-raising participants was 516 thousand and 800, and illegal fund-raising was 139 billion 500 million yuan, resulting in 119 thousand and 600 yuan fundraising participants losing 16 billion 388 million yuan in principal. The funds absorbed were used to repay the principal and interest, acquire listed companies, buy and sell securities and futures, invest in equity and borrow from abroad. Part of the funds were used by Zhou Shiping to buy real estate and repay personal debts.
Due to the large number of victims in this case, according to the relevant provisions of the criminal procedure law of the people’s Republic of China, through the contact of this court, some victims are still unable to serve. Now we take the form of announcement to inform the victims of the litigation rights and obligations of this case. See the notification of victims’ litigation rights and obligations of Shenzhen People’s Procuratorate for details.
how to compensate the 10 billion online loan platform from soaring to falling
According to the official public information, Hongling venture capital was established in March 2009. At that time, Zhou Shiping saw the demand for private lending and founded Hongling venture capital with the money earned from stock speculation, becoming the earliest P2P company in Shenzhen.
It is precisely because of the early entry and the low cost of getting customers. Hongling venture capital was once China’s leading P2P online loan platform. In 2013, the concept of Internet finance was completely popular, and Zhou Shiping and Hongling venture capital also jumped to the wind.
Zhou Shiping hired a group of executives from traditional banks with high salaries to be responsible for operation and risk control, and the transaction scale of Hongling venture capital expanded rapidly. The cumulative trading scale of its platforms once exceeded 450 billion yuan and the cumulative number of lenders exceeded 2.74 million
However, the scale of the hurricane is facing anomie. Since 2015, the risk control chaos of Hongling venture capital has been exposed and a large number of adverse events have occurred.
In February 2015, Senhai garden project led to a loss of 70 million yuan for Hongling venture capital. Hongling venture capital covered the loss and paid the principal and interest.
In 2016, Hongling venture capital fell into bad debt crisis because the borrower of “Anhui No. 9” real estate project ran away.
In August 2017, Dalian machine tool announced that the company failed to pay interest in full on a 400 million yuan bond, which constituted a material breach of contract. Hongling venture capital unfortunately stepped on the thunder, and 150 million funds were difficult to recover.
In 2017, Huishan dairy’s debt crisis broke out, and Hongling venture capital was involved, providing Huishan dairy with 50 million loans. In the same year, Hongling venture capital stepped on Lei Yiyang group for 60 million yuan.
This is only the part of many bad debts of Hongling venture capital. With a large number of overdue, Zhou Shiping has been unsustainable.
On July 27, 2017, exhausted Zhou Shiping issued a document in Hongling community, saying that he was neither optimistic about online loan business nor good at online loan business, and planned to liquidate within three years. This statement of liquidation has caused an uproar in the industry. This also attracted the attention of local regulators. Shenzhen finance office changed to compliance filing for “reasons of industry stability”, and the first liquidation and transformation plan of Hongling venture capital was interrupted.
At the same time, since 2017, the regulatory policy has changed, the regulation has focused on the rectification of financial chaos, severely cracked down on Financial illegal and criminal activities, and all localities have increased the clearance of online loan platforms. A large number of online loan platforms are overdue and fall into the “storm” of cashing crisis.
In March 2019, Zhou Shiping once again released the post “although it is liquidation, but not goodbye” in Hongling community, officially announced the liquidation of Hongling venture capital, put forward the liquidation plan for the second time and put forward the timetable, that is, the plan of “the lender will complete the full payment within three years”: 20% in the first year (2019); 35% in the second year (2020); 45% in the third year (2021). However, the actual cashing amount is much lower than the promised proportion.
The winding up of Hongling venture capital was not smooth. There were repeated news that Zhou and Hongling venture capital were running away. In 2020, Zhou Shiping still said in his circle of friends that as the actual controller of the platform, he had cleared all personal assets, collected funds into the regulatory account, and reported all company assets for supervision. Hongling platform has been cleared, leaving only more than 23 billion yuan in stock; In the next three years, it is in line with the expected plan, and the completion of benign liquidation should be a high probability event.
However, according to the official website of Hongling venture capital, as of the end of July 2021, Hongling venture capital platform has implemented 53 cashing arrangements, with a total of 2.548 billion yuan cashed, including 36.6 million yuan for small cashes, 7.2 million yuan for special hardship cases, and 15.837 billion yuan to be cashed. In other words, from 2019 to now, the cashing amount is only one tenth of the overall scale.
