In the field of capital market regulation, a recent high-profile event is the securities regulator's investigation of Ruifengda. The decision was made after an in-depth analysis of a series of suspicious actions by the company. It is reported that Qiu Wenlong, the actual controller of Ruifengda, is currently in a state of inability to contact, and the company's operating premises have also been blocked by law enforcement departments, resulting in many investors facing the dilemma of fund redemption.
Ruifengda's alleged violations include, but are not limited to, the inconsistency between the company's registered place and the actual place of operation, the failure to liquidate the fund within the time limit, and the proportion of inquiry accounts set up for investors in the information disclosure backup system is far lower than the industry standard. The revelation of these violations has undoubtedly dealt a serious blow to the company's credibility.
What is particularly striking is that a financial product launched by Ruifengda has reached an astonishing 795.43% in just over two years, with an annualized rate of return of 191.25%. Such an unusually high yield performance has caused widespread skepticism among market analysts that it may involve improper market operations.
Ruifengda's behavior in the NEEQ market has also attracted the attention of regulators. A number of the company's financial products were found to occupy a place in the list of the top 10 shareholders of companies listed on the New Third Board. What is even more concerning is that the shares of these companies have seen an abnormal increase in trading volume after Ruifengda's participation, which may suggest market manipulation.
In 2022, Ruifengda's shareholder structure underwent major changes, and finally Hainan Smart City Holding Group Co., Ltd. and Shanghai Qingcheng Culture Club Co., Ltd. held 51% and 49% respectively. At the same time, the legal representative of the company has also changed. These changes may be related to the legal issues that companies are currently facing.
In the face of Ruifengda's predicament, investors have begun to take action to protect their rights and interests. Some investors have filed a complaint with law enforcement in the hope that the matter can be resolved through legal means.
In addition to the SFC investigation, other regulators have also begun to step in. The local government where Ruifengda is registered has sent staff to understand the situation and met with Shanghai's economic crime investigation department in the hope of finding out the truth.
Most of Ruifengda's financial products are held in custody by well-known brokerages such as China Merchants Securities, but the problem of illegal transfer of funds has sparked extensive discussion in the market about the responsibilities of custodians.
Although Ruifengda claims in internal documents that it has strict risk control measures, such as setting an early warning stop line, optimizing asset allocation, and increasing the proportion of investment in low-risk products, the current events suggest that these measures may not have been effectively implemented.