In 2017, Wang Zelong, who was born in July 1996, just turned 21 years old, and entered the Hurun Report with a wealth of 3.5 billion yuan, becoming "China's youngest billionaire", and he was in the limelight for a while. In 2015, he spent more than 1.4 billion yuan to invest in Longbai Group and made a net profit of more than 1.3 billion yuan when he was just an adult, which has been well known to the capital market.
Now, the "capital maneuver" of this new "capital tycoon" may no longer be able to "play". On April 12, Wang Zelong, as the actual controller of CNNC titanium dioxide, was investigated by the China Securities Regulatory Commission.
On the evening of April 19, Wang Zelong's violations of laws and regulations were confirmed, and the China Securities Regulatory Commission issued a "Prior Notice of Administrative Punishment" to him.
The arbitrage of fixed increase and securities lending violated laws and regulations, and Wang Zelong planned to be fined a total of 133 million by the Securities Regulatory Commission
After investigation, the CSRC believes that Wang Zelong and Hong Haowei actually participated in the non-public offering through the derivatives trading arrangement, and sold them at the market price, locking in the price difference between the discount price of the non-public offering of shares in advance, and circumventing the restriction period in disguise. In the process of Hong Haowei's transfer of shares in violation of the restrictive provisions, Wang Zelong participated in the negotiation of the arbitrage plan for increasing and financing securities, and contacted and suggested that Hong Haowei join the arbitrage. In addition, Wang Zelong, as the actual controller of CNNC Titanium Dioxide, concealed his actual participation in the non-public offering through a series of trading arrangements during the non-public issuance of shares by CNNC Titanium Dioxide in 2023, resulting in false records in the report on the issuance of A shares related to CNNC Titanium Dioxide's non-public issuance of A-shares, and the relevant acts constituted violations of laws and regulations such as the Securities Law.
At the same time, CITIC China Securities Capital Management Co., Ltd. (hereinafter referred to as "CITIC CSI") formulated an arbitrage plan, built a trading structure, and set up a trading structure for Wang Zelong and Hong Haowei's transfer of shares in violation of restrictive regulations. CITIC Securities understands that the purpose of securities lending is to provide securities lending services for customers, and cooperates with them to provide securities lending services; Haitong Securities subscribes for the non-public issuance of shares of CNNC Titanium Dioxide in its own name in accordance with the quotation instructions of CITIC CSI, and objectively helps CITIC CSI and its customers to obtain stock returns, so that the private placement arbitrage behavior can be realized; Han Yuchen came forward to implement the private placement arbitrage plan for Wang Zelong and others. The above-mentioned acts of CITIC China Securities, CITIC Securities, Haitong Securities, and Han Yuchen, together with Wang Zelong and Hong Haowei, constitute relevant violations of laws and regulations.
The China Securities Regulatory Commission intends to decide: to order Wang Zelong, Hong Haowei, CITIC China Securities, CITIC Securities, Haitong Securities, and Han Yuchen to make corrections, give warnings, confiscate 77.532 million yuan of illegal gains, of which 60.638 million yuan will be confiscated of Wang Zelong's illegal gains, and impose a fine of 155 million yuan on the joint illegal acts of the parties involved, of which Wang Zelong will bear a total of 70.5 million yuan. In addition, Wang Zelong was fined 2 million yuan for information disclosure violations.
On the whole, Wang Zelong made an illegal profit of 60.638 million yuan, was fined a total of 72.5 million yuan, and was fined 133 million yuan by the Securities Regulatory Commission.
As determined by the SFC:
In July 2022, CNNC's application for non-public issuance of A-shares was approved by the Issuance Examination Committee of the China Securities Regulatory Commission.
From July to August 2022, CITIC CSI recommended a fixed long and short arbitrage plan to Wang Zelong, according to which "customers can directly realize fixed long and short arbitrage through the OTC derivatives trading desk, settle the income in advance, and do not need to wait for a six-month lock-up period, and usually take more than a month to withdraw funds and income".
In September 2022, Wang Zelong decided to implement private placement arbitrage, lend securities through CNNC's titanium dioxide employee stock ownership plan, and carry out over-the-counter derivatives trading with CITIC CSI in the name of an investment company. Han Yuchen specifically implements the arbitrage plan and is responsible for connecting with CITIC CSI and CITIC Securities.
From September 2022 to February 2023, Wang Zelong and Han Yuchen negotiated with CITIC CSI and CITIC Securities to increase the arbitrage business of securities lending, agreeing that the employee stock ownership plan of CNNC Titanium Dioxide would refinance and lend 88 million shares of "CNNC Titanium Dioxide", CITIC CSI would designate four private equity fund product accounts to carry out hedging transactions of "CNNC Titanium Dioxide" stocks, and CITIC Securities would formulate a securities lending plan.
In November 2022, CITIC CSI conducted preliminary communication with Haitong Securities on the income swap business linked to the non-public issuance of shares of "China Nuclear Titanium Dioxide".
In December 2022, the compliance department and the risk management committee of CITIC CSI deliberated and approved the application for over-the-counter derivatives trading linked to the non-public issuance of about 88 million shares of "CNNC Titanium Dioxide", and in the same month, the "request for instructions on the notional fund of 600 million yuan for an investment development limited company and China Securities Capital to carry out OTC options linked to CNNC titanium dioxide" was submitted to the risk management department and the risk management committee of CITIC Securities for deliberation and approval.
In February 2023, due to the insufficient subscription funds of an investment company, in order to use up the securities lending quota, Wang Zelong suggested that his friend Hong Haowei join the arbitrage transaction of CNNC titanium dioxide's fixed increase and securities lending, and Hong Haowei participated in and carried out OTC derivatives trading with CITIC CSI in the name of a No. 1 private securities investment fund (hereinafter referred to as No. 1 fund).
From February 8 to February 10, 2023, the Derivatives and Trading Department of Haitong Securities included the "CNNC Titanium Dioxide" stock in the derivatives business alternative database after internal approval of the department, and fulfilled the approval process for the company's seal for the non-public issuance subscription documents of CNNC Titanium Dioxide.
On February 10, 2023, Haitong Securities participated in the first round of quotation for the non-public offering of CNNC titanium dioxide in accordance with the CITIC CSI order price and subscription amount, and the issue price was determined to be RMB 5.92 per share on the same day.
On February 16, 2023, Haitong Securities signed a share subscription agreement for the non-public issuance of shares of CNNC Titanium Dioxide, and entered into a long-term income swap with CITIC CSI linked to the underlying "CNNC Titanium Dioxide" stock, with a nominal principal of RMB 532 million and the corresponding number of shares of 89,864,900 shares, which will be fully margined by CITIC CSI. On the same day, an investment company reached a vanilla option portfolio contract with CITIC CSI, with a nominal principal of 426 million yuan and a corresponding number of 71,959,500 shares, and a vanilla option portfolio contract with CITIC CSI, with a nominal principal of 89,039,800 yuan and 15,040,500 shares.
From February 6 to February 20, 2023, an investment company and CITIC CSI reached a short income swap linked to the underlying "China Nuclear Titanium Dioxide" stock, with a total of 71,959,500 shares and a corresponding notional principal of 548 million yuan. From February 10 to February 20, 2023, Fund 1 and CITIC CSI reached a number of short income swaps, with a total of 15.0405 million shares and a corresponding notional principal of 114 million yuan. From February 6 to February 14, 2023, the 88 million shares of "CNNC Titanium Dioxide" held by the CNNC Titanium Dioxide Employee Stock Ownership Plan were allocated to four private equity fund product accounts in accordance with the path designated by CITIC CSI, and the loan period was extended and renewed until September 2023.
From February 13 to February 21, 2023, four private equity fund product accounts sold 88 million shares of "China Nuclear Titanium Dioxide" at an average price of about 7.63 yuan per share, with a turnover of about 671 million yuan. Wang Zelong did not inform the listed company of the information that he actually participated in the non-public offering through the above-mentioned transaction arrangement. On February 24 and March 3, 2023, China Nuclear Titanium Dioxide announced a report on the issuance of A-shares related to the non-public issuance, stating that there was no situation in which the actual controller of the issuer participated in the subscription of the issuance through direct or indirect means.
On March 9, 2023, CNNC Titanium Dioxide announced the listing of this non-public offering of shares, and the stock restriction period is from March 9 to September 8, 2023. From March 17 to April 6, 2023, an investment company and Fund 1 applied to CITIC CSI for early termination of all long vanilla option contracts and short income swap contracts, and CITIC CSI closed the corresponding positions and settled them.
In the end, Wang Zelong made an actual profit of 58.162 million yuan through an investment company, Hong Haowei and Wang Zelong made an actual profit of 14.1939 million yuan and 2.476 million yuan respectively through Fund 1, CITIC CSI did not make an actual profit, CITIC Securities securities lending business income was 1.9107 million yuan, and Haitong Securities income exchange business income was 789,400 yuan.
Longbai Group has a net profit of more than 1.3 billion yuan and is known as "China's youngest billionaire"
In recent years, Wang Zelong, who was born in July 1996, seems to be known to the market as a new "capital tycoon".
In 2015, Wang Zelong, who had just become an adult, stepped onto the "stage" of the capital market. This year, Wang Zelong participated in the acquisition of Sichuan Lomon Titanium Industry, the largest "snake swallowing elephant" acquisition in the titanium dioxide industry, the predecessor of Longbai Group (002601.SZ, formerly known as "Lomon Baili and Baililian").
According to the "2015 Non-public Issuance of A Shares Plan (Revised Draft)" disclosed by Longbai Group on June 6 of that year, Wang Zelong will subscribe for 53 million shares of the company with 1.431 billion yuan. After the completion of this round of private placement in September 2016, Wang Zelong became the fourth largest shareholder of Longbai Group with 9.24% of the shares held at that time.
Picture: List of shareholders of Longbai Group after its listing in September 2016
However, Jiemian News found that on the day after the lifting of the ban on the above-mentioned private placement shares (September 20, 2019), Longbai Group announced on September 21 that four shareholders and executives, including Wang Zelong, announced the reduction of their holdings, of which Wang Zelong plans to reduce his holdings of 93.8976 million shares, accounting for 50% of his shareholding ratio and 4.62% of the total share capital of listed companies.
On April 19, 2020, Longbai Group disclosed the results of the shareholding reduction, showing that from October 21, 2019 to April 14, 2020, Wang Zelong reduced his holdings of 86,440,412 shares of the company's unrestricted tradable shares through call bidding and block trading, accounting for 4.2539% of the company's total share capital, and the reduction price was between 11.5 yuan and 17.99 yuan per share, involving a total reduction price of about 1.142 billion yuan. After this equity change, Wang Zelong holds 101,354,863 tradable shares of the company with unrestricted sale conditions, accounting for 4.9879% of the company's total share capital.
Since then, Wang Zelong has continued to accelerate the reduction of holdings. According to the third quarter report of Longbai Group in 2020, as of September 30 of that year, Wang Zelong's shares decreased by 45,862,513 shares again, and his shareholding decreased to 55,492,350 shares, with the shareholding ratio reduced to 2.73%, and based on the lowest stock price of Longbai Group between April 15 and September 30, 2020 was 12 yuan per share, Wang Zelong had cashed out at least 550 million yuan in this round of reduction.
In the following six months, by December 31, 2020, Wang Zelong reduced his holdings by 23,444,720 shares again, reducing his shareholding to 32,047,630 shares, and the shareholding ratio fell to 1.58%, and based on the lowest stock price of Longbai Group of 19.69 yuan per share from October 1 to December 31, 2020, Wang Zelong has cashed out at least 462 million yuan in this round of reduction.
On March 3, 2021, after the listing of the latest newly issued shares of Longbai Group, the number of shares held by Wang Zelong increased to 55,492,350 shares, with a shareholding ratio of 2.48%, but the first quarter report of Longbai Group in 2021 shows that as of March 31 of that year, Wang Zelong's shareholding has fallen out of its top ten shareholders, which is obviously lower than the 28,468,717 shares held by the tenth largest shareholder of Longbai Group at that time. According to this, during this period, Wang Zelong reduced his holdings of at least more than 27.02 million shares of Longbai Group, and estimated that the reduction would be at least 612 million yuan based on the lowest stock price of 22.64 yuan per share in March 2021.
If Wang Zelong did not further reduce his holdings, it was estimated that the closing price of 28.58 yuan per share on March 31, 2021, the shares of Longbai Group held by Wang Zelong were valued at about 800 million yuan at that time.
According to this estimate, judging from the current publicly available information, Wang Zelong has made a profit of more than 2.7 billion yuan from the investment of Longbai Group, which is at least 1.3 billion yuan compared with the cost price of 1.431 billion yuan initially invested. In addition, from September 2016 to March 31, 2021, Longbai Group implemented a total of 11 profit distributions and a total of 8.233 billion yuan in cash dividends.
Wang Zelong took advantage of this to become the so-called "China's youngest billionaire". In 2017, 21-year-old Wang Zelong entered the Hurun Report with a wealth of 3.5 billion yuan.
In the past ten years, the capital has been expanded, and the wealth value has more than quadrupled in four years
With the first pot of gold earned from Longbai Group, Wang Zelong began to lay out his capital layout in the A-share market for nearly ten years.
According to the rough statistics of interface news, Wang Zelong has successively laid out Longbai Group, Western Materials (002149.SZ), Huawang Technology (605377.SH), and Yitian Intelligent (300911. SZ) and Zhengzhou Xinda Jie'an Information Technology Co., Ltd. (hereinafter referred to as "Xinda Jie'an"), a proposed IPO company delisted from the New Third Board.
According to the prospectus (declaration draft) disclosed in October 2019 by Xinda Jiean, a former NEEQ listed company and a company planning to IPO, on December 7, 2018, Fan Yecai, one of the founding shareholders of the company, signed the "Share Transfer Agreement" with Wang Zelong, under which Fan Yecai transferred 5.16 million shares of Xinda Jiean to Wang Zelong at a price of 14.78 yuan per share, with a total investment of 76.2648 million yuan, and as of the issuance, Wang Zelong's shareholding ratio was 3.5% , is the fifth largest shareholder of Xinda Jie'an, and does not hold a position in the company.
In 2019, Wang Zelong spent more than 1.6 billion yuan to take over the control of nuclear titanium dioxide from Li Jianfeng. According to the announcement issued by China Nuclear Titanium Dioxide on November 15 of that year, Li Jianfeng planned to transfer his 430.5 million unrestricted tradable shares of the company (accounting for 27.05% of the company's total share capital) to Wang Zelong at a total transaction price of 1.6359 billion yuan at 3.8 yuan per share. After the share transfer, the controlling shareholder and actual controller of the company was changed from Li Jianfeng to Wang Zelong. On December 17 of that year, Wang Zelong officially became the owner. On September 25, 2020, after the new round of additional issuance and listing of CNNC titanium dioxide, Wang Zelong's shareholding increased to 892,927,745 shares, and the shareholding ratio increased to 43.48%. By March 9, 2022, after the new round of additional issuance and listing of CNNC titanium dioxide, the number of shares held by Wang Zelong increased to 1,294,745,230 shares, and the shareholding ratio decreased to 33.45%. Since November 15, 2019, CNNC Titanium Dioxide has implemented a total of 5 rounds of profit distribution and a total of 466 million yuan in cash dividends.
Picture: List of shareholders of CNNC Titanium Dioxide in the first quarter of 2014
In January 2021, Wang Zelong participated in the private placement of Western Materials, a titanium business company, and was allocated 10 million shares for 125 million yuan, becoming the third largest shareholder of Western Materials holding 2.05% of the shares at that time. The third quarter report of 2021 shows that Wang Zelong has withdrawn from the list of its top ten shareholders, and his stake is at least lower than the 2,384,400 shares held by the National Social Security Fund, the tenth largest shareholder of Western Materials. Based on the lowest stock price of 15.19 yuan per share from August 3 to September 30, 2021, if Wang Zelong sells all the 10 million shares he holds, the reduction will be about 152 million yuan.
Picture: List of shareholders after the additional issuance of Western Materials on January 22, 2021
In March 2022, Wang Zelong participated in the private placement of Huawang Technology, a specialty paper business company, and subscribed for 14,576,457 shares with 265 million yuan, becoming the third largest shareholder of Huawang Technology with a shareholding ratio of 4.39%. By July 18, 2022, Wang Zelong increased his stake in Huawang Technology to 16,154,157 shares, increasing his shareholding ratio to 4.86%. However, as soon as the half-year lifting period (September 23, 2022) arrived, Wang Zelong began to reduce his holdings, and by March 31, 2023, he had withdrawn from the top ten shareholders of Huawang Technology. Based on the lowest stock price of Huawang Technology from September 23, 2022 to March 31, 2023 of 15.95 yuan per share, if Wang Zelong fully reduces his holdings, he will cash out about 258 million yuan this time.
Picture: Huawang Technology's list of shareholders after the issuance of additional shares on March 23, 2022
In the third quarter of 2023, Wang Zelong stormed into Yitian Intelligence, a kitchen appliance manufacturing company. Yitian Intelligence's third quarter report of 2023 shows that Wang Zelong holds 4,059,712 shares through a credit securities account and 0 shares through an ordinary securities account, holding a total of 4,059,712 shares, making him the second largest shareholder of the company with 3.79% of the shares. On February 28, 2024, Yitian Intelligent updated its shareholders to show that the number of shares held by Wang Zelong increased to 4.1142 million shares, and the shareholding ratio increased to 3.85%.
Picture: Yitian Intelligence's recent shareholder list
In addition, on January 26, 2018, Erkang Pharmaceutical announced that Shuai Fangwen, the controlling shareholder and actual controller of the company, pledged 200 million shares held by him to a natural person named Wang Zelong, accounting for 23.4% of his shareholding.
After some operations, the Hurun Report shows that by 2021, Wang Zelong's wealth has skyrocketed to 18 billion yuan, more than four times his wealth of 3.5 billion yuan in 2017.
"Capital player" Wang Deliang and Jiaolong flashed
Even in the capital market where "legends" are frequent, Wang Zelong's performance in the capital market in the past ten years should not be underestimated, and it can be said that the experience of "the male protagonist of Shuangwen novels" is nothing more than that.
However, things may be different. Wang Zelong's father is Wang Deliang, a "capital player" who was once well-known in the market. Wang Zelong once said in an exclusive interview with Forbes China that investing in Lomon Baili (Lomon Group) was the first major financial investment decision made under the instruction of his father Wang Deliang.
According to public information, Wang Deliang, who was born in 1970 in Wushi Village, Yuhu, Jieyang City, Guangdong, was engaged in chemical trade in his early years. In 1995, he became the general manager of Jieyang Defu Chemical Co., Ltd. (now deregistered). In 2000, Wang Deliang founded Guangzhou Zhongkexin Group Co., Ltd. (now cancelled). Since then, the person has started its capital layout.
According to public information, Wang Deliang and his affiliates have successively controlled or participated in Cangzhou Chemical (Cash Cow Chemical 600722. SH), Changjiu Biochemical (now Rebate Technology 600228. SH), Jinhua chlor-alkali (now Hangjin Technology 000818. SZ), Chinatungsten High-tech (000657.SZ) and many other state-controlled listed companies, Wang Deliang is therefore known as the "state-owned enterprise hunter".
In 2014, Wang Deliang and Zhang Ben, a natural person, jointly initiated the establishment of Jiaolong Asset Management Co., Ltd. (hereinafter referred to as "Jiaolong Asset Management", which was renamed as "Guangzhou Evergreen Mining Co., Ltd." on January 3, 2024). Wang Deliang and CNNC Titanium Dioxide had an inextricable relationship earlier, and Jiaolong Asset Management played a pivotal role during this period.
According to the 2014 annual report, Wang Deliang appeared for the first time as a natural person on the list of the top ten outstanding shareholders of China Nuclear Titanium Dioxide, holding 4.84 million shares, with a shareholding ratio of 0.88%, making him the second largest shareholder of China Nuclear Titanium Dioxide. Since then, after Wang Deliang withdrew from the list of the top ten circulating shareholders in the first quarter of 2015, he reappeared on the list in the semi-annual report of that year and his shareholding ratio rose to 1.14%, making him the largest shareholder of China Nuclear Titanium Dioxide. In the third quarter of 2015, Wang Deliang again disappeared from the top 10 outstanding shareholders of CNNC Titanium Dioxide, and was replaced by the 1.5% stake of China Securities Construction Investment Pujiang Star Asset Management Plan, which was invested by Jiaolong Asset Management.
However, by the end of 2015, the Pujiang Star Asset Management Plan also disappeared from the list of the top ten circulating shareholders of CNNC Titanium Dioxide. Replaced by Zhang Ben, another important figure in the Jiaolong family. According to the 2016 semi-annual report of China Nuclear Titanium Dioxide, Zhang Ben, a natural person, is among its top ten shareholders and the fifth largest shareholder with a shareholding ratio of 2.27%. However, by the end of 2016, Zhang Ben reduced his holdings by 6,042,525 shares, and the number of shares held by China Nuclear Titanium Dioxide fell to 28.81 million shares, and the shareholding ratio fell to 1.81%. According to the first quarter report of China Nuclear Titanium Dioxide in 2017, Zhang Ben did not appear in the list of its top ten shareholders. By the end of June 2017, Zhang Ben once again appeared as the fourth largest shareholder of China Nuclear Titanium Dioxide, which held 1.39% of the shares. Since then, Zhang Ben has increased or decreased his shareholdings, but he has always remained among the top ten shareholders of China Nuclear Titanium Dioxide, and as of March 31, 2019, he was still the sixth largest shareholder holding 17.0547 million shares (1.07% shareholding). As Wang Zelong began to take a stake and actually control CNNC titanium dioxide, Zhang Ben disappeared from the list of major shareholders of this listed company.
On November 3, 2015, CNNC Titanium Dioxide announced that the company participated in the "China Securities Construction Investment Golden Star No. 1 Asset Management Plan" with 299 million yuan, and the ratio of priority funds to secondary funds in the asset management plan was not higher than 2:1, and the company planned to subscribe for the subordinate share of the asset management plan with its own funds of 299 million yuan. The asset management plan intends to invest in shares issued by a listed company, which shall not exceed 4.9% (inclusive) of the total share capital of the listed company and 10% (inclusive) of the outstanding share capital of the listed company. According to the announcement, the investment adviser of the asset management plan is Jiaolong Asset Management.
Wang Deliang, Zhang Ben and Jiaolong frequently entered and exited the ranks of CNNC titanium dioxide shareholders, and the listed company participated in the purchase of Jiaolong Asset Management-related asset management plans, which attracted great attention from the market. On August 15, 2016, CNNC titanium dioxide was urgently suspended due to verification of media reports. Three days later (August 18, 2016), the company resumed trading and clarified that since the establishment of the China Securities Construction Investment Jinxing No. 1 Asset Management Plan on November 2, 2015, the asset management plan account has never traded CNNC titanium dioxide stocks, and the company has no related relationship or any other relationship other than the affiliated relationship with Jiaolong Asset Management, Pujiang Star Asset Management Plan, Wang Deliang and Zhang Ben, the founder shareholders of Jiaolong Asset Management, Wang Yuhan, the current shareholder of Jiaolong Asset Management, and Wang Yun, a natural person, nor does there be any undisclosed interest arrangement.
Two years later, on May 26, 2018, the progress of CNNC's titanium dioxide disclosure showed that as of the announcement date, the liquidation of the China Securities Construction Investment Venus No. 1 asset management plan in which the company participated was completed, and the cumulative amount of liquidation money received was a loss of 36.0447 million yuan compared with the investment principal.
It is worth mentioning that in 2014, Wang Deliang also directly entered the list of top ten shareholders such as Golden Eagle (600232.SH) and *ST Xifa (000752.SZ, Tibet Development) as a natural person shareholder. The asset management plan of Jiaolong Asset Management has also successively deployed Guangzhou Automobile Group (601238.SH), Guangzhou Development (600098. SH), Guangbai Co., Ltd. (002187. SZ), Pearl River Beer (002461.SZ), Wantong Expressway (600012.SH) and many other listed state-owned enterprises.
Picture: At the end of 2014, Wang Deliang directly held A-shares
Jiaolong was involved in the stock price manipulation case of Guangzhou Automobile Group, which was listed as a typical notice by the China Securities Regulatory Commission
"I often walk by the river, how can I not get my feet wet." Jiaolong manipulated the stock price of GAC Group, and was finally confirmed by the regulator for violating the law.
Jiemian News learned that the asset management products of Jiaolong Asset Management bought GAC Group's A shares from the second quarter of 2015, and by the end of September of that year, Jiaolong Asset Management's asset management products and Zhang Ben accounted for 6 of the top ten shareholders of GAC Group, ranking the 4th to 9th largest shareholders of GAC Group, controlling more than 60% of GAC Group's actual tradable chips of A shares. This situation remained in place until mid-2017. According to the third quarter of 2017, Jiaolong gradually withdrew from GAC Group, and Pujiang Star Asset Management plans to retain the position of the tenth largest shareholder. By the end of 2017, Jiaolong had withdrawn from the list of the top ten shareholders of GAC Group and its top ten circulating shareholders.
Image: GAC Group's mid-2016 shareholder changes
According to the administrative penalty decision issued by the Guangdong Securities Regulatory Bureau on February 28, 2017, during the closing period of the six trading days from June 18, 2015 to May 13, 2016, Jiaolong Asset Management controlled the use of six securities accounts, took advantage of the financial advantage, continuously bought, deliberately raised the stock price of GAC Group, and declared a large number of GAC Group shares at a commission price higher than the latest market transaction price before the declaration, which affected the closing price of the stock on the same day.
The above-mentioned Dragon account groups include Galaxy Capital Dragon No. 1 Asset Management Plan, Galaxy Capital Dragon No. 2 Asset Management Plan, Galaxy Capital Dragon No. 3 Asset Management Plan, Galaxy Capital Dragon No. 68 Asset Management Plan, China Securities Construction Investment Venus No. 1 Asset Management Plan, The investment advisers of these asset management products are all Jiaolong Asset Management, and the transaction funds are derived from the funds raised by Jiaolong Asset Management through the above-mentioned asset management products, and Jiaolong Asset Management and its shareholders at that time also contributed capital to participate in the subscription.
The Guangdong Securities Regulatory Bureau fined Jiaolong Asset Management 3 million yuan, and gave a warning and fined 300,000 yuan to Wang Yuhan, the legal representative and general manager of Jiaolong Asset Management at the time. Interestingly, Tianyan check shows that just before Jiaolong Asset Management was punished, Wang Deliang and Zhang Ben transferred all their shares to Wang Yuhan on October 29, 2015. According to public information, Wang Yuhan was born in June 1986 and worked as a flight attendant at Korean Air, and then jumped to securities companies and banks.
On January 26, 2018, the China Securities Regulatory Commission (CSRC) specifically reported the case of Jiaolong Asset Management's manipulation of GAC Group as a typical case - that is, the first case of tail-of-the-line market manipulation conducted by an asset management product investment adviser in 2017 to avoid the risk of liquidation.
Since then, Wang Deliang and other older generations have gradually disappeared, and the new generation of Wang Zelong has appeared. However, after nearly ten years of operation and layout, Wang Zelong's "capital transfer technique" has also been investigated and dealt with by the regulatory authorities. With the issuance of the prior notice of administrative punishment on April 19, 2024, the subsequent fate of this new "capital tycoon" may also take a turn.
It cannot be ignored that Wang Zelong's wealth value has shrunk significantly, and although he first entered the Hurun Global Rich List in 2022, his wealth value fell to 11.5 billion yuan, and then fell to 11 billion yuan and 7.2 billion yuan in 2023 and 2024, respectively, and his ranking in the Hurun Global Rich List fell by 33 and 991 places respectively.
Behind this, the market value of Wang Zelong's A-share company has shrunk significantly. For example, since August 2021, the share price of China Nuclear Titanium Dioxide, which Wang Zelong actually controls, has continued to fall, and the stock once climbed to a high of 13.99 yuan / share, but its share price has fallen back to about 4.03 yuan / share as of April 19, 2024, with a cumulative decline of more than 65% during the period. The profit of China Nuclear Titanium Dioxide continued to decline after reaching a high of 1.217 billion yuan in 2021, declining by 47.14% and 34.84% year-on-year in 2022 and 2023, respectively. (According to Interface News)