First, she pledged her shares to Noah Wealth. The day before she was detained, Luo Jing pledged her shares to Noah Wealth. After taking the money, she was arrested the next day.
How much thunder did Noahs wealth tread on? According to the U.S. stock announcement, the amount is as high as 3.4 billion. Share prices plunged more than 20% last night, and chairman Wang Jingbo responded urgently.
Today, however, things are still fermenting. The new news is that Mr. Liu Qiangdongs Jingdong is also involved.
Why did Liu Qiangdongs Jingdong get involved in the serial bombing?
In Noah Wealths U.S. stock announcement last night, it mentioned that the credit fund of its Shanghai Goffer Asset Management Company provided supply chain financing for third-party companies related to Chengxing International Holdings, with a total amount of 3.4 billion yuan.
Last night, Wang Jingbo, founder and chairman of the board of directors of Noah Wealth, issued an internal letter saying: We have a series of funds of core enterprises. The investment target of the fund is mainly to provide supply chain financing for Chengxing International related parties on their accounts receivable claims with Beijing Jingdong Century Trading Co., Ltd.
Fund Jun also noticed on Weibo that an information map about the fund products is circulating.
It is probably a financial product like this: the fund manager collects funds for Goffers assets for the purpose of purchasing accounts receivable of Guangdong Chengxing Holdings in the Jingdong Century, and the source of repayment is debtors repayment due in the Jingdong Century or Guangdong Chengxing Repurchase.
On June 20, the day before Luo Jings arrest, the record of equity changes of Chengxing International Holdings (02662.HK) showed that on June 19, several companies owned by Noah Wealth ranked among the controlling shareholders of Chengxing International.
According to the information disclosed by the Hong Kong Stock Exchange, Noah Wealth founder Wang Jingbo, Shanghai Goffer Asset Management Co., Ltd., Shanghai Noah Investment Management Co., Ltd., Founding Core Enterprise Series Private Equity Fund and Noah (Shanghai) Finance Leasing Co., Ltd. acquired 677 million shares of Chengxing International Holdings on June 19. It accounted for 62.84%.
According to 21 reports, a financier familiar with supply chain financing said that according to the disclosed information analysis, Chengxing International Holdings is a financier, which lends receivables to Noah Financing Lease, a SPV (Special Purpose Vector) for sale to Noahs Founding Core Enterprise Series Private Equity Fund. At the same time, Luo Jing takes his own shares as its own. Enhance the letter for the pledge.
Simply put, Luo Jing put the business contract between Chengxing International Holdings and Jingdong into supply chain financing in Noah, and Noah packaged this basic asset as a fund product and sold it to investors.
Jingdong responded that the contract was fake and had already alerted the police.
Noah Wealth: I also called the police.
According to Tencents Prism, a representative of Geoffrey said Chengxing International was a supplier to Jingdong and had a large number of long-term transactions with it.
Jingdong official said, This matter has nothing to do with Jingdong. Chengxing is suspected of forging and fraudulent business contracts with Jingdong. We are shocked by this kind of behavior and have cooperated with the injured company to report the case.
On the afternoon of July 9, Jingdong Group made an information statement on Chengxing incident. According to Jingdong Group, Guangdong Chengxing Holding Group Co., Ltd. (hereinafter referred to as Chengxing) 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.
According to industry and Commerce data, Beijing Jingdong Century Trading Co., Ltd. was established in 2007 and its legal representative is Liu Qiangdong.
Jingdong said that during the process of being fraudulent, Shanghai Geoffrey Asset Management Co., Ltd. failed to verify the authenticity of the contract in any way, and exposed its own major defects in the regulation and risk control. Jingdong has actively cooperated with the police in investigating the case of Geoffrey being fraudulent.
We hope Goffer will face up to his management problems and do a good job in improving his professionalism, instead of trying to shirk responsibility blindly through confusion. Goffers unprovoked action against Jingdong has had a serious impact on its reputation. Jingdong solemnly condemns Goffers act of ignoring the facts and reserves the right to take legal measures against it.
Attachment: An account of the Chengxing Incident in Jingdong
1. Guangdong Chengxing Holding Group Co., Ltd. (hereinafter referred to as Chengxing) is a general supplier of Jingdong, which 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.
2. Shanghai Goffer Asset Management Co., Ltd. (hereinafter referred to as Goffer) failed to verify the authenticity of the contract in any way and in Jingdong from the beginning to the end in the process of being fraudulent, which exposed its own major defects in the regulation and risk control. Jingdong has actively cooperated with the police in investigating the fraud of Geoffrey.
But Noah Wealth does not think so. According to the Financial Associations, Noah Wealth believes that Chengxing International is a supplier of East Beijing, and there are a lot of long-term transactions between the two sides. Goffer has filed a judicial lawsuit against Chengxing and East Beijing for this supply chain financing, and is actively cooperating with and respecting the results of the judicial investigation.
Serial bombings triggered by the arrest of A-share chairwoman
On the afternoon of July 5, Boxin Co., Ltd. announced that Jiangsu Boxin Investment Holding Co., Ltd. received the Detention Certificate of Yangpu Branch of Shanghai Public Security Bureau on July 5, 2019. Ms. Luo Jing, the actual controller and chairman of the company, and Mr. Jiang Shaoyang, the director and financial director of the company, were detained in Shanghai on June 20, 2019 and June 25, 2019, respectively. The criminal detention of Yangpu Branch of the Municipal Public Security Bureau is pending further investigation by the public security organs.
According to public information, Luo Jing, the chairman of the board of directors detained in criminal detention, founded Chengxing International Group in 1996. At present, the group is a comprehensive group integrating pan-entertainment, intelligent hardware and big health industries. It owns Chengxing International Holdings, Boxin Share of A-share Listed Companies and Camsing Health Care of Singapore Main Board Listed Companies.
As soon as the news came out, Luo Jings Hong Kong stock company plunged 80% on the 8th.
On the evening of July 8, Noah Wealth issued a pre-market announcement that its credit fund of Shanghai Goffer Asset Management Company provided supply chain financing for third-party companies related to Chengxing International Holdings, with a total amount of RMB 3.4 billion.
The actual controller of Chengxing International Holdings was recently detained by Chinese police for suspected fraudulent activities. As fund manager, Shanghai Goffer Asset Management Co., Ltd. has taken various legal actions and promised to perform its obligations in the best way to ensure the interests of these fund investors.
Affected by the incident, Noah Wealth shares plunged more than 20% after the opening of the U.S. stock market on the evening of July 8, losing about $500 million in market value. Noah Wealth shares fell 20.43% to close at $35.6.
Noah Fortune also issued an announcement explaining the matter.
1. Noah Wealth is not the shareholder of Chengxing International Holdings, it is not the transfer of equity, but the pledge of equity.
2. Noah Wealths Goffer Assets Representative Creation Core Enterprise Series Private Equity Fund and Noah Finance Leasing Company have signed the Equity Pledge Contract of Chengxing International Holdings.
Wang Jingbo said that, first of all, the relevant funds will be deferred for half a year to one year in accordance with the regulations. From the discovery of risks to today, the company has done the following six things: increased the pledge of shares of listed companies and sealed up the shares of listed companies; sealed up the relevant bank accounts; issued a reminder letter, demanding the payer to perform repayment according to the debt-to-swap agreement. It also initiates information disclosure announcements on the compliance of the investors of the fund, initiates criminal and judicial proceedings against the relevant parties for the funds that have already expired, and records them with trade associations and regulatory units.
Attached is the full text of the letter:
Hello, all Noahs.
We have a series of funds of a core enterprise. The investment target of the fund is mainly to provide supply chain financing for the receivables between Chengxing International (Chengxing) and Beijing Jingdong Century Trading Co., Ltd. The actual controller of Chengxing Company was sentenced by Chinese police recently for suspected fraud. Detention measures.
Because Chengxing company is suspected of criminal fraud, the case is still under investigation, a lot of information we are not completely clear, may not be the best time to communicate, but because Noah is a nearly transparent company, there is no secret, so here we do a completely transparent, 100% of the status quo of communication and synchronization. I think this is also Noahs gene. I am convinced that if we all share our thoughts and make the information symmetrical, we can really think and face together. You will contribute all your strength, and we will form a positive upward energy.
At present, Chengxing-related funds do have risks. As a manager, Geoffrey took the fastest action to safeguard the interests of investors in the first time when he found out the risk factors.
The core value of a company is integrity and honesty. From this incident, we can see that there are still many areas in management that need to be improved, but please believe that our management will never find problems but cover them up, using one error to cover up another one; in the next period of time, the company will do its best. Strength, to the greatest possible understanding of the situation, the preservation of fund assets. At present, it will take some time for the situation to become clear.
Firstly, the relevant funds will be deferred for half a year to one year in accordance with the regulations. From risk discovery to today, the company has done the following things:
1. Increase the stock pledge of listed companies and seal up the stock of listed companies;
3. Send a reminder letter requiring the payer to fulfil his repayment obligations in accordance with the debt swap agreement;
4. Start the information disclosure announcement on the compliance of the investors of the fund;
5. The funds that have already expired have instituted criminal and judicial proceedings against the relevant parties;
At the same time, we contacted some large-scale distress funds, made effective exchanges, had some preliminary consensus, put forward some practical solutions before the expiration of the fund, so as to reassure customers.
As you know, in 2014, we encountered the Jingtai incident, which was a black eye and inexperienced handling. The most important thing is that in the first three months, the project processing team needs time and space to understand the core information as soon as possible, to maximize substantive breakthroughs, and to have a positive effect on the return of the entire fund, thus protecting the rights and interests of customers.
Therefore, the occurrence of this incident, but also hope that all staff do not disseminate false information, do a good job in customer communication.
In the case of dealing with Jingtai incident, the process is difficult, but accumulated experience and judgment, decision-making power, and finally successfully drew a conclusion to protect the rights and interests of customers. At present, our core team has reached a consensus and is confident and determined to handle this matter as well.
From a macro point of view, 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, more and more thunderstorms will occur and the systemic risk will increase. As a capital management institution with a certain scale, it is really difficult to avoid risks 100%. One of the fundamental reasons for this incident is that the macro market is at the end of the credit cycle, which may also be an irresistible fate in the financial industry.
But as a whole, we are a very healthy company. The assets of each fund are isolated from each other, and there will be no chain reaction and systemic risk. Compared with the Jingtai Incident five years ago, our comprehensive strength has also made great progress, and we have more resources to invest in dealing with risk incidents.
Here I also appeal to you that if this can change the companys genes, from marketing to products, from wind control to investment management, there is a comprehensive consensus: from non-standard consolidated products to standardized funds; portfolio and net value products are the only direction; get rid of the huge non-standard fixed income assets path. Path dependence. So Noah and Goffer will really grow into a private bank and asset management company in the international standard sense.
This incident has strengthened our road of transformation, waking us up in a cruel and strong way.
We are engaged in the financial industry, through the management of risks to benefit, we must have a deeper understanding: risk will not disappear, can only be dispersed. If we really have a consensus and break through inertia, this event is a great and profound good thing for us.
Our core management and second generation management team will be more confident, more comprehensive and work together to move forward.
I am convinced that our management team is confident, determined and capable of solving this problem. We also need the support of all of you. Please trust us and pass on our confidence to your customers. Give us precious processing time. We believe that we will try our best to achieve the best results.
According to public information, Noahs wealth originated in 2003, with Noahs wealth as its brand and originated in China. New York Stock Exchange listed in the United States, the company obtained the China Securities Regulatory Commission and the Hong Kong Securities Regulatory Commission business development related financial licences and qualifications of the Integrated Financial Services Management Group.
Noahs chairman, Wang Jingbo, has more than 20 years of experience in finance and wealth management. In 1992, he entered the financial industry. He was successively the general manager of Xiangcai Securities Asset Management Headquarters, the deputy general manager of Xiangcai Heyin Fund Management Company and the general manager of Xiangcai Securities Private Finance Headquarters.
In August 2005, Wang Jingbo led the founding team to form Noah Wealth. On November 10, 2010, Noah Fortune was listed on the New York Stock Exchange with the listing code NOAH, becoming the first independent wealth management institution to be listed in China. ?
As of the end of the first quarter of 2019, the total wealth allocation scale was 636.2 billion, providing comprehensive services for more than 270,000 high net worth people, according to the official website. ?
The stock price of Luo Jings company behaves weirdly
After Luo Jings arrest, the stock price of Boxin, a listed company of A shares, performed very strange.
At the end of July 9, Boxin shares rose again, with a turnover of 233 million yuan. And the companys shares staged the floor yesterday.
However, Chengxing International Holdings (2662 HK), a Hong Kong stock company, continued to fall sharply, dropping 27% to HK$0.66 at the end of the day. On July 8, however, it plunged more than 80% from the opening price of HK$4 to HK$0.9.
Source: Liu Song_NBJ9949, Responsible Editor of China Foundation Newspaper