A few pennies net worth private placements have appeared one after another, and a number of tens of billions of private equity products have touched the early warning line, and the pressure to close positions is emerging

Finance Associated Press, February 5 (Reporter Shen Shuhong) "Recently, the situation of us communicating with private equity to deal with product liquidation has increased, and overtime has almost become the norm." A brokerage source told the Financial Associated Press reporter.

Under the drastic adjustment of the market, it is no longer an exception for private equity products to hit the warning and stop-loss lines. The reporter of the Financial Associated Press learned that recently, Banxia Investment, Infore Capital, Lerui Assets and other tens of billions of private equity assets have reached the early warning line of individual products, and individual products of Higgs and Wuzhi Investment have touched the stop-loss line and are facing liquidation.

Other data show that in the market where public funds have been launched one after another, the net value of some private equity products is less than a dime, and only three points, two points, or even only one point are left.

Some private equity frankly admitted that the company has recently faced very high pressure from customers on the channel amount, mainly due to the sharp increase in customer complaints caused by the decline in net value caused by the drastic market adjustment. According to its understanding, among private equity institutions, a new round of negotiations with channels and investors to reduce or cancel management fees, revise or cancel the net worth warning line and stop loss line "trend" or is emerging. "As things stand, it may be difficult for some investors to buy it. ”

One and two bases came out one after another

According to data from third-party platforms, among the private equity products that have had net value updates since January 26, at least 891 private equity products have a unit net value lower than the traditional warning line of 0.8 yuan, and at least 554 private equity products have a unit net value lower than the traditional liquidation line of 0.7 yuan.

As of February 1, the net unit value of a private equity fund named "Wotian No. 101" was only 0.012 yuan. Since the beginning of 2024, the product's revenue has plummeted by 88.12%.

As an "old product" established in March 2018, the net value curve of "Wotian No. 101" since its establishment is not "stable". In December 2020, it also topped the list of equity strategy returns in Beijing with a return of 47.84%.

The product is managed by a private equity company in Beijing, and fund manager Zhang Dongri serves as the company's legal representative and general manager at the same time. In the public information, Zhang Dongri "is good at mining high-quality growth enterprises in the consumption upgrading, medicine and medical care, intelligent manufacturing, big data, and Internet industries, and has participated in the second phase of people's livelihood structured products in 2015 and achieved up to 300% of the income, and in 2016, the 100 million group of structured products obtained 41% of the income."

According to other data, as of January 26, the net value of Zhiyou Investment's product "Zhiyou Growth No. 1" was only 0.015 yuan, of which the net value fell by 44.44% in less than a month this year. During the same period, the net value of Qianhai Lize's product "Lize Stable No. 2" was only 0.0319 yuan, and the net value of "Tianworm Capital - Flexible Allocation" under Tianworm Capital was only 0.079 yuan. As of February 2, the net value of "Hongfeng Asset Growth Selection No. 2" under Hongfeng Asset Management was 0.026 yuan, the net value of "Oriental Hengrun Runfeng No. 1" under Oriental Hengrun was 0.051 yuan, and the net value of "Yangxiang Phase III" under Yangxiang Investment was only 0.0809 yuan.

According to the information on the official website of AMAC, among the above-mentioned products, "Lize Stable No. 2", "Tianworm Capital - Flexible Allocation", "Oriental Hengrun Runfeng No. 1" and other products have all had "abnormal information reporting", which is mainly manifested in "failure to update products or major events as required for a total of 2 or more times", and there is also 1 undisclosed annual report information.

It is worth mentioning that the scale of these products is generally small, mostly less than 5 million yuan, and the scale of the company is mostly in the range of 0-500 million yuan.

A number of well-known private equity products have touched the warning line and stop loss line

Recently, many well-known private equity management products have faced the situation of hitting the early warning line and stop loss line.

Taking Banxia Investment at the helm of Li Bei as an example, as early as January 8, due to large fluctuations in the securities market, the net value of Banxia Yongtai Macro No. 2 Private Securities Investment Fund was 0.8455, lower than the early warning line of 0.85 agreed in the contract. The relevant terms of the contract are: the early warning line of the fund is 0.85 yuan of the net value of the fund share. If the net value of fund shares on T day is higher than the stop loss line and not higher than the warning line, the fund manager shall remind all fund unit holders of the risk by telephone, text message and other communication methods within 2 working days after T day. Judging from the date of the signature of the announcement, it is January 10 this year.

According to another source, the net value of the company's macro hedging series of No. 1 Class B, No. 1 Class C, and No. 2 Class B products has recently touched the warning line.

In the tens of billions of private placements, Infore Capital and Lerui Assets have individual product net value recently touched the warning line.

There are also quite a few cases where the stop loss line is hit. The reporter of the Financial Associated Press learned that the net value of a quantitative hedging product under quantitative private placement Higgs has recently hit the stop loss line. The company was founded in March 2018, and its R&D staff consists of Olympiad award winners, junior class graduates, masters and doctors from prestigious universities at home and abroad. Prior to founding this company, Higgs Investment's team was engaged in exchange-traded options market making business at South China Capital, which was well-known in the market.

With a multi-variety, multi-style and customizable product line such as stocks, futures, and fixed income, some of our products also have such experiences. Sun Min, the company's quantitative investment director, is a Ph.D. in quantum physics and a visiting scholar at Dortmund University, and was responsible for the quantitative trading group and stock index timing strategy at Mingtun Investment from 2015 to 2018, with a maximum fund management scale of 2 billion.

A medium-sized private equity fund manager in South China told the Financial Associated Press reporter that although most of the company's products have not set a stop-loss line and an early warning line, the recent pressure on the channel amount of customers is still very large, mainly due to the sharp increase in customer complaints caused by the decline in net value caused by the sharp market adjustment. According to its understanding, among private equity institutions, a new round of negotiations with channels and investors to reduce or cancel management fees, revise or cancel the net worth warning line and stop loss line is emerging.

"As things stand, it may be difficult for some investors to buy it. The above-mentioned person said.

(Finance Associated Press reporter Shen Shuhong)