Private equity Hunan Huazhen Investment is regulated and its major shareholder has been punished for manipulating its stock price

Per reporter Yang Jian per editor Xie Xin

In July, more than 30 private placements were ordered to make corrections

According to the incomplete statistics of the "Daily Economic News" reporter, in July alone, the securities regulatory bureaus in Jilin, Xiamen, Hunan, Guangdong and other regions issued orders to make corrections or issued warning letters to more than 30 private equity institutions in their jurisdictions.

It is worth noting that the Hunan Securities Regulatory Bureau recently issued a warning letter on "batch", among which the problems of Hunan Xiangshang Capital include: the appropriateness management of investors is not in place - the private equity fund products issued by the company actually have 7 investors, of which 3 investors have an investment amount of less than 1 million yuan. In addition, the investment operation of the company's private equity fund is not standardized. The problem with Hunan Hankun equity investment is that the company only issued one fund product in 2013, did not conduct post-investment management of the fund product, nor did it conduct liquidity risk assessment such as maturity repayment; the company did not follow the principle of professional operation and mainly engaged in the regional equity market listing recommendation business.

On August 2, the Hunan Securities Regulatory Bureau announced the decision to issue a warning letter to Hunan Tianying Investment Consultants, and the problem with Tianying Investment is to publicize and promote private asset management products to unspecified targets and publicize and exaggerate the expected returns of the products; secondly, the company's procedures for issuing private fund products are not standardized, and the investor risk tolerance questionnaire is filled in by sales personnel; the third is that it does not follow the principle of professional operation, and the company currently operates the business of promoting and selling trust products.

In this regard, some private equity people told the "Daily Economic News" reporter that recently the local securities regulatory bureaus have strengthened the rectification of the private fund industry, and a number of private equity institutions have ordered or punished. In addition, the strictest administrative measures for the appropriateness of securities and futures investors in history have been officially implemented since July 1, 2017, clarifying the risk rating, risk rating model, and division of investors, which has a greater impact on the entire industry, including private equity funds.

The major shareholder of Huazhen Investment has been punished

It is worth noting that Hunan Huazhen Investment is mainly regulated for raising funds from individuals other than a large number of qualified investors in the form of promised returns, and its listing has attracted the attention of the reporter of the Daily Economic News. The "Daily Economic News" reporter found that on June 8, 2016, according to the administrative punishment decision issued by the Hunan Securities Regulatory Bureau, a Changsha shareholder named "Zhu Yong" was investigated by the Hunan Securities Regulatory Bureau for manipulating the stock price of Nanda Optoelectronics and imposed administrative penalties. It is worth noting that in the 22 account groups controlled by Zhu Yong, the account of "Hunan Huazhen Investment Co., Ltd." also appeared.

According to an investigation by the Hunan Securities Regulatory Bureau, from May 5 to June 11, 2014, Zhu Yong controlled and used 22 securities account groups, including "Hunan Huazhen Investment Co., Ltd.", "China Resources Trust Zhenbao No. 4", and "Hunan New Property Group". Zhu Yong, Chen Mouyu and others admitted that Zhu Yong controlled the use of the account group during the manipulation period, and that the account group had a relationship between funds and personnel, and that the computer used to place the order and the trading address used to place the order partially coincided with the information of The computer on which Zhu Yong was engaged in securities trading, and the trading behavior tended to converge.

During the manipulation period, the account group accumulated nearly 3.39 million yuan in profits from nanda optoelectronics, and the Hunan Securities Regulatory Bureau ordered Zhu Yong to dispose of the illegally held securities in accordance with the law, confiscate the illegal gains of 3.3894 million yuan, and impose an equivalent fine. According to the 2013 annual report of Nanda Optoelectronics, "Hunan Huazhen Investment Co., Ltd." ranked second among its top 10 circulating shareholders, holding 1.736 million shares, in addition to "China Resources Trust Zhenbao No. 4" ranked 6th, holding 825,000 shares. In the list of the top 10 circulating shareholders in the 2014 mid-term report of Nanda Optoelectronics, there is also a figure of "Hunan New Property Group".

Who is this "Zhu Yong"? In this regard, the reporter tried to contact the company according to the telephone provided on the company's official website, but no one answered. According to the official website of Hunan Huazhen Investment, Zhu Yong is the head of the research team, good at macro fundamental analysis, has a strong ability to analyze trading trends and has accumulated rich practical experience in trading. It is worth noting that according to the data of the Asset Management Association, the registration and filing time of Hunan Huazhen Investment is December 2, 2015, and the legal representative of the company is Chen Lihua, and the only product currently on record with the Association is Huazhen No. 1 Fund. However, according to the "Tianyancha" information, the major shareholder of Hunan Huazhen Investment is Zhu Yong, whose capital contribution ratio is 51%, and the other shareholder, Zhu Yao, accounts for 49%.