In response to the 3.4 billion yuan mine trampling incident on the afternoon of July 9, Goffer Assets said it had filed a judicial lawsuit against Chengxing International and Jingdong for the supply chain financing.
Goffer asset personage told First Financial Journalist that the project encountered fraud, and now fully recovered, in the process of economic investigation, I believe that the relevant judicial organs will find out the truth according to law, Noah will actively protect the legitimate rights and interests of investors through various market-oriented methods and means to the greatest extent possible.
As for the prosecution of Chengxing and Jingdong, Noahs latest statement said: Chengxing international parties are suppliers of Jingdong, there are a lot of long-term transactions between the two sides.
Just on the afternoon of July 9, Jingdong Group made a statement about Chengxing Incident, saying that Guangdong Chengxing Holding Group Co., Ltd. is a general supplier of Jingdong and has certain business in Jingdong. Without knowing anything about it, Chengxing is suspected of forging contracts with Jingdong and other companies for fraud. In this regard, Jingdong has also reported the case to the local public security organs.
On the morning of September 9, the statement also said that Shanghai Goofy Asset Management Co., Ltd. had not verified the authenticity of the contract in any way or in any way during the process of being fraudulent, and exposed its own major defects in the regulation and risk control. As for Goofys fraud, Jingdong has actively cooperated with the police. Investigation.
On the evening of July 8, Wang Jingbo, founder and chairman of the board of directors of Noah Wealth, said in an internal letter that Noah Wealths Creation Core Enterprise Fund (hereinafter referred to as Creation Fund) owes creditorsrights to accounts receivable between Chengxing International Holding Associates and Beijing Jingdong Century Trading Company (hereinafter referred to as Jingdong). It provided 3.4 billion yuan of supply chain financing. But Jingdong responded on July 9 that the matter had nothing to do with Jingdong.
After discovering the risks, Noah Fortunes Goffet assets have taken six measures, including increasing the number of assets and sealing up the pledge of Chengxing International Holding Stock. As of the early closing date of July 9, Chengxing International Holdings, pledged to Noah Wealth, had a market value of only about 570 million yuan and a huge gap of 2.8 billion yuan with investment funds.
The public information shows that the shares of major shareholders of Chengxing International Holdings and Boxin Shares have been pledged, and the book capital of both companies is less than 20 million yuan. The parties concerned did not disclose the direct borrowers of the GEF.
Jingdong, the debtor of the receivable, denied that it was related to the incident. Whether the underlying assets were real or not - after the detention of Luo Jing, the actual controller of Boxin shares and Chengxing International Holdings, the truth of Noahs 3.4 billion yuan investment in mine trampling was confusing.
Doubts about the authenticity of underlying assets
After the opening of U.S. stocks on the evening of July 8, Noah Wealth (NYSE: NOAH) shares plunged from $44.74 a share on the previous trading day to as low as $34.5, with the largest decline reaching about 23%. By the end of the day, it was still down 20.43% to $35.6 per share.
Noah Fortune announced that its products issued by Shanghai Goffer Asset Management Company (hereinafter referred to as Goffer Assets) provided supply chain financing for H-share company Chengxing International Holding Company with a total amount of RMB 3.4 billion. Luo Jing, the actual controller of Chengxing International Holdings (02662.HK), was recently detained by Chinese police for suspected fraudulent activities.
Prior to July 5, Boxin shares (600083.SH) had announced that Luo Jing, the actual controller and chairman of the company, and Jiang Shaoyang, the director and financial director, were detained by Yangpu Branch of Shanghai Public Security Bureau on June 20 and 25 respectively. Subsequently, Chengxing International Holdings also announced that Luo Jing had been detained by Yangpu Branch of Shanghai Public Security Bureau on that day.
According to the announcement of Noah Wealth, the GEF of Goffer Asset Management mainly aims at providing supply chain financing to the related parties of Chengxing International Holdings on their accounts receivable claims with Jingdong.
According to Oriental Wealth Data, on June 19, 2019, Noah Finance Leasing Co., Ltd. (hereinafter referred to as Noah Leasing), a subsidiary of Noah Wealth, became a shareholder of Chengxing International Holdings. The number of shares held by Noah Wealth is about 677 million, with a share-holding ratio of 62.84%.
Goffer Assets said in a statement on July 8 that the investment maturity date of the fund share was postponed in accordance with the fund contract because the related parties involved in financial fraud were still in the process of criminal investigation and were not expected to be allotted temporarily at the end of the GEF investment period.
On the evening of July 8, Wang Jingbos internal letters began to spread widely in social media. In her letter, she said that the initial fund allocation is expected to be delayed for six months to one year.
Up to now, Noah Wealth, Goffer Assets, Chengxing International Holdings and other relevant parties have not made any disclosure on the key information of the creation time of the GEFs products, the corresponding direct financiers, product maturity, trading structure, and the form of fund issuance. How the underlying assets of the GEF investment target are unknown.
On the morning of July 9, Beijing Dongfang responded to First Finance and Economicsstatement that the matter had nothing to do with Beijing Dongfang. Chengxing International Holdings was suspected of forging and fraudulent business contracts with Beijing Dongfang and had cooperated with the injured company to report the case.
Noah Wealth also said that the current case has been in the judicial process, according to the information that the case is carefully planned and brewed for many years of fraud cases, many financial institutions and individuals have become victims, Goffer assets have taken legal measures in advance to protect the legitimate rights and interests of fund investors.
It is more difficult to recover.
Noah Wealth said to First Finance and Economics that since the discovery of risks, Goffer Assets has taken six main measures, including: 1. increasing the pledge of listed companiesshares and sealing up the shares of listed companies; 2. closing down relevant bank accounts; 3. issuing reminder letters, requiring the payer to fulfill the repayment according to the debt-to-swap agreement. 4. Start the announcement of information disclosure on the compliance of the investors of the fund; 5. The fund that has expired has initiated criminal and judicial proceedings against the relevant parties; 6. File with trade associations and regulatory units.
Noah Wealth also said that the company also contacted a number of large distress funds and made effective exchanges, there are some preliminary consensus, put forward some practical options before the fund expires. However, from the perspective of equity pledge, it may be extremely difficult to ensure the smooth recovery of funds.
Noah Wealth said in a statement on July 8 that the above-mentioned shares are not equity transfers, but equity pledge measures adopted by Goffer Assets on behalf of the Genesis Core Enterprise Series Private Equity Fund and the contract signed by Noah Leasing and Chengxing International Controlling Shareholder ChinaBase Group Limited.
Noah Wealth also claims that the Pledgee of the above pledge is the Creation Fund and Noah Lease. Because the former is a contractual fund and does not have independent legal entity qualification, the pledge is signed by the fund manager Geoffrey Asset and the pledger is ChinaBase Group Limited. At the same time, due to the need to penetrate upward to the actual controllers requirements, the Goffer assets, the upper shareholder of Noah leasing Noah Holdings, Shanghai Noah Investment Management Co., Ltd. will be disclosed together.
Chengxing International Holdings has fallen sharply in the last three trading days. Among them, on July 4 and 5, they fell 16.14% and 8.93% respectively. After the news of Luo Jings criminal detention came out, the biggest drop was as high as 90% in the 8 July trading session. The final report was HK$0.9 per share, with a drop of 80.39%. The total decline in three trading days was HK$5.11, with a cumulative decline of about 85%.
In the early trading of July 9, Chengxing International Holdings rebounded. After opening at HK$1, the highest price of Chengxing International Holdings rose to HK$1.1, an increase of HK$0.2, or more than 22%, compared with the closing price of the previous trading day. But as of 16:00 p.m., it was HK$0.67 per share, down 25.56%.
At 16:00 p.m. on July 9, Chengxing International Holdings, which is pledged to Noah, has a market value of only HK$454 million, or RMB$400 million, far from the financing amount of 3.4 billion yuan, with a static gap of about 3 billion yuan.
China Base Group Limited pledged its shares to Noah, which is the companys entire holdings. According to public data, China Base Group Limited holds 677 million shares of Chengxing International Holdings, accounting for 62.8397%, and no other shares can be pledged.
Up to now, Chengxing International Holdings and Noah Wealth have not disclosed the direct financiers of this huge amount of funds.
According to the report of Chengxing International Holdings in mid-2018, the companys net asset value was only HK$588 million at that time. Among the current assets reflecting solvency, trade accounts and other receivables were HK$658 million, while bank balances and cash were HK$25.42 million.
Boxins quarterly report shows that as of the end of March 2019, the company had only 19.23 million yuan in book currency. The 65.3 million shares held by controlling shareholder Suzhou Shengjun Marketing Management Co., Ltd. have also been pledged.
Have stepped on Leihui Mountain Dairy Industry and Jingtai
From a macro perspective, the economy has reached the end of the cycle. When the economy goes down, collateral fails and the price of capital goods no longer rises, there will be more and more thunderstorms and more systemic risks, Wang Jingbo said in the above-mentioned internal letter. As a capital management institution with a certain scale, it is difficult to avoid risks 100%.
Wang Jingbo also said in his letter that in 2014, Noah encountered the Jingtai Incident. The most important thing is that in the first three months, the project processing team needs to maximize substantive breakthroughs and play a positive role in the funds repayment. Finally, the success of drawing a full stop to protect the rights and interests of customers.
As the largest third-party wealth management institution in China, this is not the first time that Noah Wealth and its Goffer assets have trampled on mines. In early 2017, the Northeast Dairy Enterprise Huishan Dairy Industry (06863. HK) was questioned by short-selling institutions and caused a crisis, Goffer assets were also involved in the eddy.
First Finance and Economics reported on March 30, 2017 that Goffer Assets touched Leihui Mountain Dairy Industry has two private products, namely Goffer Creation Optimal Investment Fund No. 1 and Goffer Creation Optimal Investment Fund No. 2, which were established on March 30, 2016 and filed on April 11, 2016.
According to public information, after the outbreak of the Huishan Dairy Crisis, Goffers assets applied to the Hong Kong High Court at the end of March 2017 to freeze assets including China Huishan Dairy Holdings, then Chairman and major shareholder Yang Kai and Guanfeng, as well as another persons assets, forbidding them to transfer or leave Hong Kong.
Wang Jingbos so-called Jingtai Incident occurred in 2014. An unknown private equity fund in Shenzhen cooperated with a real estate enterprise in southwest China through leverage and multi-level nesting to leverage the development of real estate projects, but it encountered the breakdown of the capital chain. In order to fill the fund hole, the first two fabricated a non-existent bank bridge loan project, which eventually defrauded nearly 1 billion yuan of funds, and Noahs wealth was involved.
In an internal letter, Wang Jingbo said that Noah Wealth faithfully fulfilled its duties as a manager. But some of Goffers risky assets have also been regulated. The public information shows that in September 2018, because of the irregular disclosure of information and the imperfect mechanism to prevent conflicts of interest, Anhui Securities Regulatory Bureau decided to take regulatory talks on Goffer assets.
Source: First Financial Responsibility Editor: Qiao Junjing_NBJ11279