China's youngest billionaire: arbitrage 606.3 billion, fined 133 million

Refer to Ortho Quotient

2024-04-26 09:04Posted on the official account of Beijing Zhengshang

He is a post-95 billionaire, and at the age of 21, he entered the Hurun Report with a wealth of 3.5 billion yuan.

The 24-year-old is worth more than 10 billion, ranking second in the world and first in China in the Forbes list of young billionaires.

Compared with the brothers and sisters Xie Qirun and Xie Chengrun, who were born in Zhengda, Nie Yunchen, the self-made founder of Heytea, is not well-known, but he has already gained a firm foothold in the capital market and is dominant.

China's youngest billionaire: arbitrage 606.3 billion, fined 133 million

He is the actual controller of the A-share listed company China Nuclear Titanium Dioxide, Wang Zelong.

However, just as the new "National Nine Articles" were released, the new capital tycoon's "manipulation technique" began to fail, and he was deeply involved in the illegal reduction of private placement stocks, and was successively announced and filed, and he may face a huge fine!

On April 19, China Nuclear Titanium Dioxide issued an announcement that Wang Zelong, the actual controller, was filed by the China Securities Regulatory Commission on suspicion of violating restrictive provisions by transferring China Nuclear Titanium Dioxide's non-public issuance of shares in 2023 and illegal information disclosure.

Source: China Nuclear Titanium Dioxide Announcement

Wang Zelong made an illegal profit of 60.638 million yuan this time, and was fined 72.5 million yuan for illegal transfer of stocks and illegal information disclosure, and was fined 133 million yuan by the Securities Regulatory Commission.

In this hidden capital operation, on the same day, the case was filed by CITIC Securities (600030.HK), the sponsor of China Nuclear Titanium Dioxide and the joint lead underwriter CITIC Securities (600030. SH), and the private placement was obtained by Haitong Securities (600837.SH).

What is the bureau behind the punishment of the three parties, through the penalty decision, the author summarized the ins and outs, simply put, Wang Zelong, the actual controller of China Nuclear Titanium Dioxide, under the "suggestion" of CITIC CSI, through a series of means to subscribe for private placement shares but do not have to be locked according to the actual controller (12 months), and at the same time use the employee stock ownership plan to sell short arbitrage.

Source: Theory of Capital Jianghu

In September 2022, Wang Zelong carried out over-the-counter derivatives trading with CITIC CSI in the name of an investment company.

CITIC Securities borrowed the channel of Haitong Securities to subscribe for 92,398,600 shares of CNNC Titanium Dioxide, during which Haitong Securities helped CITIC China Securities and its customers obtain stock gains.

CNNC Titanium Dioxide's employee stock ownership plan, refinancing and lending 88 million shares, short-term short selling in the market for a period of 182 days, which is exactly the same as the lock-up period of private placement shares.

On February 23, 2023, the private placement of CNNC titanium dioxide was completed, with a total amount of 5.288 billion yuan, and 16 investors participated in the subscription, and the lineup was very luxurious.

Including UBS AG, CICC, Huatai Securities, Everbright Securities, Haitong Securities, Guotai Junan Securities and other well-known institutions, central enterprise rural industry investment fund, Gansu Great Wall Xinglong Silk Road Fund, underdeveloped areas industrial development fund and other state-owned funds, Shanghai Youyou Wealth Investment, Wells Fargo Fund, Golden Eagle Fund, Caitong Fund, Nord Fund and other public and private offerings, as well as Niu San, Guo Weisong, Wei Wei.

The major shareholders initiated the private placement, and the securities were short-sold, and the operations of CITIC Securities and Haitong Securities on the nuclear titanium dioxide cooperated seamlessly, resulting in heavy losses to the rule-abiding institutions participating in the private placement, and ordinary investors and shareholders were even more tricked, pure leeks.

Through this complex capital bureau, CITIC and Haitong made a profit of 1.91 million and 789,000 yuan on the surface, but it was very cost-effective from the results, CITIC Securities was fined about 25.16 million yuan, the subsidiary CITIC Securities was fined 46.5 million yuan, and Haitong Securities was fined about 7.76 million yuan.

During the period, in order to use up the quota for securities lending, Wang Zelong also pulled his friend Hong Haowei to join the arbitrage through Fund 1, and Hong Haowei and Wang Zelong actually made profits of more than 14.19 million yuan and 2.47 million yuan respectively through Fund 1.

Wang Zelong was born in 1996, is a native of Zhuzhou, Hunan, at the age of 20 to invest in the first share of titanium dioxide, 23 years old to control the second largest listed company of titanium dioxide, 25 years old to spend 10 billion yuan in the field of cross-border new energy vehicles, but also has a capital operation skills that are extremely incompatible with his age, can be called "demon".

A number of media have exposed: "Wang Zelong, who was born in 1996, is not a capital genius, behind it is Wang Deliang, a capital player who was once well known in the market, Wang Zelong is the son of Wang Deliang." ”

In 2017, Jiaolong Asset Management was publicly punished by the Guangdong Securities Regulatory Bureau for allegedly sitting in the bank and manipulating the stock price of Guangzhou Automobile Group. After that, Wang Deliang disappeared from the capital market.

As the pride of the sky, Wang Zelong's threshold for the first pot of gold is much higher than that of ordinary people, and it is a capital operation when he was a student.

In 2016, 20-year-old Wang Zelong was still a sophomore at Beijing Film Academy, majoring in film and television project planning.

At this time, the capital market was staging a "snake swallowing elephant merger and acquisition" case, when the securities name was still "Baililian", Lomon Baili announced that it planned to raise funds through non-public offering to acquire 100% of the shares of Lomon Titanium Industry.

The annual output of the two companies is 200,000 tons and 300,000 tons respectively, both of which are the top in the industry, Wang Zelong participated in the private placement of Lomon Baili, and subscribed for 188 million shares with 1.431 billion yuan, holding 9.24% of the shares, becoming its fourth largest shareholder.

Three years later, the ban on shares was lifted, and Wang Zelong immediately reduced his holdings and cashed out 717 million yuan, plus the 489 million dividends obtained, he made a profit of more than 1.2 billion yuan from Lomon Baili in three years.

After the reduction, Wang Zelong still held 6.24% of the shares of Lomon Baili, which was worth nearly 1.5 billion according to the market value at that time. Since then, Wang Zelong's operation on Lomon Baili has continued to reduce his holdings.

In an interview with Forbes China, Wang Zelong bluntly said, "Investing in Lomon Baili is the first major financial investment decision made under the instruction of my father Wang Deliang, and it is undoubtedly a successful case."

Wang Zelong sharply reduced his holdings of Lomon Baili shares and cashed out, which was actually a "preparation" for entering the ownership of China Nuclear Titanium Dioxide.

Founded in 2001, the main business is the production of titanium dioxide, listed on the Shenzhen Stock Exchange in 2007, and has lost money for three consecutive years since 2008, with an annual loss of about 200 million.

In December 2019, 23-year-old Wang Zelong invested 1.636 billion yuan to purchase 431 million shares held by Li Jianfeng, the controlling shareholder and actual controller of China Nuclear Titanium Dioxide, and obtained control of China Nuclear Titanium Dioxide.

In 2020, Wang Zelong once again invested 1.6 billion yuan to win the fixed increase of China Nuclear Titanium Dioxide, and its shareholding ratio rose to 43.48%, firmly occupying the position of the actual controller.

After Wang Zelong became the owner of CNNC titanium dioxide, the chemical company entered new energy in a big way, including lithium battery and new energy power generation.

From 2020 to 2022, with the continuous increase in issuance and dividends, Wang Zelong ushered in the peak of wealth in 2022, sitting on 18 billion, but it will shrink to 11 billion by 2023.

Now, it has fallen to 7.2 billion in 2024, and an important reason is that the stock price continues to fall.

The share price of China Nuclear Titanium Dioxide once climbed to a high of 14 yuan/share, and has since fallen sharply, and as of the announcement in April 2024, it has fallen back to about 4 yuan/share, with a cumulative decline of more than 65% during the period.

After reaching a high of 1.217 billion yuan in 2021, the profit of China Nuclear Titanium Dioxide also continued to decline, declining by 47.14% and 34.84% year-on-year in 2022 and 2023, respectively.

Success is also titanium dioxide, defeat is also titanium dioxide, now the previous gameplay is no longer effective, many netizens think that only 100 million fines are too little, what do you think?

View original image 986K