Recently, the Shanghai Financial Court released information showing that the investor Yan sued Oriental Harbor for two reasons: first, the private equity fund's promotion materials one-sidedly exaggerated the income of its products, and second, a private equity fund incurred large losses. In this regard, the court held that the applicant lacked factual and legal basis, so it rejected Yan's application.
According to public information, Oriental Harbor is a 10-billion-level private placement led by well-known fund manager Dan Bin, and will become the 10-billion-level private placement champion of the year in 2023 with an average yield of 22%.
In the view of many industry insiders, the lawsuit of investors not only reflects the current performance pressure faced by private equity institutions, but also sounded the alarm for managers, and subsequent private placements need to put the interests of investors first, and walk on two legs of "professional + service".
The investor sued Oriental Harbor
Recently, the Shanghai Financial Court issued the Civil Ruling on the Special Procedure for Yan and Shenzhen Oriental Harbor Investment to Apply for Confirmation of the Validity of the Arbitration Agreement. According to the ruling, Yan claimed that Oriental Harbor exaggerated publicity, neglected to perform its duties as a manager, and seriously violated its fiduciary duties during the management of a private equity fund, causing heavy losses to himself.
Judging from Yan's defense reasons, the promotion materials of a private equity fund provided by Oriental Harbor one-sidedly exaggerated the returns of its products and failed to fully disclose the risks. At the same time, Oriental Harbor has an unshirkable responsibility for the huge losses of a private equity fund, and the losses of a private equity fund are entirely caused by the company's negligence in performing its management duties and breach of fiduciary obligations.
Oriental Harbor retorted that, firstly, the Fund Contract, including the arbitration clause, was an expression of the true intentions of the parties and was legal and valid. The investor received the relevant risk warning and signed the Risk Disclosure Letter through an electronic signing on a securities electronic platform of the distribution agency, and the agreement on the dispute resolution method is the true expression of the intention of the investor and other parties. Secondly, with regard to arbitration as a means of dispute resolution, Oriental Harbor and its distribution agencies have reminded investors to pay attention through various channels and fulfilled their obligation to fully prompt, and the font of the relevant clauses has been bolded, and there is a separate reminder in the "Risk Disclosure" section. Finally, as an investor, Yan is by no means a "consumer" in the legal sense, and cannot only accept investment income and refuse to bear investment losses.
In this regard, the Shanghai Financial Court held that the clauses on the application of law and the handling of disputes in the Fund Contract in this case were bold and blackened, and the content of the arbitration agreement was a separate chapter, the text was clear and easy to understand, and it was placed at the end of the contract text, which played a role as a reminder, and the arbitration clause in this case should be a valid arbitration clause. The dispute shall be accepted by the Shanghai Arbitration Commission, which is expressly agreed in the arbitration clause. The claimant's claim that the arbitration clause stipulated in the contract at issue was invalid and lacked factual and legal basis was not supported, and Yan's application was rejected.
According to public information, Oriental Harbor is a 10-billion-level private placement led by well-known fund manager Dan Bin, and will become the 10-billion-level private placement champion of the year in 2023 with an average yield of 22%. However, judging from the specific situation of the private equity products, it is true that some products have performed poorly. According to data from third-party platforms, as of January 26, the net value of many products under Oriental Harbor hovered around 0.7 yuan, and some products not only failed to achieve positive returns since their establishment more than three years ago, but also lost nearly 30%.
The overall performance of private equity was under pressure
A number of private equity market sources told reporters: "Behind the prosecution of Oriental Harbor, it is actually the epitome of the pressure on the performance of subjective long-only strategy private placements. Especially since last year, the performance of many tens of billions of private placements has been adjusted drastically, and the dissatisfaction of investors has increased. ”
According to public information, the market has been volatile since last year, and the net value of many leading private placements has been significantly adjusted.
According to data from third-party platforms, as of January 26, the net unit value of many products under Hanhe Capital fell below 0.7 yuan, with a drawdown of more than 17% in the past year, and the drawdown of many products under Shenzhi Asset Management has exceeded 25% in the past year.
At the same time, many well-known private equity founders who had previously set up their own doors did not perform satisfactorily. According to the data of the third-party platform, as of January 26, the net value of some products of Heyuan Fund has fallen below 0.8 yuan, and as of January 19, the net value of many products under Yunzhou Capital has also fallen to around 0.65 yuan.
February is a key window for A-shares?
Looking back at the trend of the A-share market in January, the Shanghai Composite Index rose for 11 of the 22 trading days of this month, during which the overall decline was 6.27%. As of today's close, the Shanghai Composite Index fell below 2,800 points. The Shenzhen Component Index fell by 13.77% in January, while the ChiNext Index fell by 16.81% in January, also recording a six-month decline.
Looking forward to February, the agency believes that although the short-term market is in the bottoming stage, the gradual accumulation of extreme valuations and positive factors still needs to be patient and not too pessimistic. In terms of allocation, it focuses on artificial intelligence, central enterprises, aviation and other sectors.
According to the statistics of Founder Securities, in the past 10 years, the probability of the market rising in February is 70%, the average rise is 1.39%, and the median rise is 1.02%, the SSE 50 rise probability is 60%, the average rise is 0.24%, and the median rise is 0.37%, the CSI 300 index has a 50% rise probability, the average rise is 1.07%, and the median rise is 0.05%, and the ChiNext rise probability is 60%, the average rise is 3.41%, and the median rise is 1.17%. The CNI 2000 Index was 80%, with an average increase of 4.22% and a median increase of 3.13%.
Shen Wan Hongyuan said that the market is generally weak, but it is still necessary to think about the opportunity for a rebound. The expected repair of policy implementation and effect lacks an effective opportunity in January, and February is the key window.
Galaxy Securities said that after the ups and downs of 2023, the negative factors inside and outside the stock market have basically been digested, considering that the current A-shares are at the bottom of the valuation area, 2024 is expected to usher in the recovery of confidence and attract capital inflows under the favorable conditions at home and abroad, and A-shares are expected to usher in a volatile upward repair market in 2024.
CICC believes that although the short-term market is in the bottoming stage, the gradual accumulation of positive factors superimposed on extreme valuations still needs to be patient with the market outlook, do not need to be too pessimistic, short-term disturbances will not change the long-term situation, and the allocation opportunities of the market in 2024 are still expected to be better than those in 2023, and it is recommended to pay attention to the combination of economic recovery and bonus assets in the next 3-6 months.
Article source: Synthesized from Shanghai Securities News, China Business News, etc