How did this rare story, which spanned mainland China, Hong Kong, China and New York Stock Market in the United States, happen? What are the intricate connections among the companies mentioned by the domestic media? How did the parties react?
Thunderstorm: Luo Jing was arrested
Who can imagine that a brief announcement triggered a series of thunderstorms in the capital markets of China and the United States?
The first thunder is the A-share listed company Boxin shares. At noon on July 5 (last Friday), Boxin issued a notice saying 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.
According to public information, Luo Jing, a Hong Kong citizen, has been awarded the title of Mulan in the business circle for three consecutive years. In addition to Boxin shares, Luo Jing also owns Hong Kong motherboard listed company Chengxing International Holdings and Singapore motherboard listed company Camsing Healthcare. The three companies respectively correspond to the three business sectors of the group: intelligent hardware, pan-entertainment and big health.
Not surprisingly, on the evening of that day, Chengxing International Holdings, a Hong Kong stock company, also issued a notice saying that Luo Jing, chairman and executive director of the company, was now criminally detained by Yangpu Branch of Shanghai Public Security Bureau.
Serial bombing: Noahs fortune 3.4 billion yuan financing trample mine
Chengxing International is well-known in the entertainment industry. In May 2017, Chengxing International Group announced the acquisition of POW! Entertainment Co., founded by StanLee, the creator and producer of Manwick and Spider-Man, and won more than 250 copyrights of StanLees original animation IP. In 2018, Chengxing joined forces with Alibaba to introduce the popular Japanese game Travel Frog into China.
Noah Wealth, which was listed in the United States, issued a sudden announcement that night before the opening of the U.S. stock market. It said that its credit fund of Shanghai Goffer Asset Management Company (Genesis Core Enterprise Private Equity Fund) provided supply chain financing for third-party companies related to Chengxing International Holdings with a total amount of RMB 3.4 billion. Due to the impact of this incident, the product was delayed.
Lets first look at what supply chain financing is. At present, there are three main financing modes of supply chain: accounts receivable financing mode, confirming warehouse financing mode and financing warehouse financing mode. Financing under accounts receivable is mainly done in China. In order to obtain operating funds, enterprises provide financing services for sellers on the basis of accounts receivable generated by real trade contracts signed between sellers and buyers, and take accounts receivable under contracts as the first source of repayment.
This supply chain financing is worrying: according to the above-mentioned financiers quoted in the 21st century economic report, Accounts receivable should be the underlying asset in question. Whether Noah Wealth can dispose of this part of the shares alone depends on the contractual agreement between the two sides. The report also said that even if Noah Wealth acquired the right to dispose of the shares, it would be difficult to fill the $3.4 billion hole.
Affected by the incident, Noahs wealth fell unexpectedly after the opening of the U.S. stock market on Monday. Its share price fell 22.53% at the beginning and 20.43% at the end, with a market value loss of about $500 million. Prior to Tuesdays session, the stock fell nearly 10% further.
On that day, Wang Jingbo, founder and chairman of the board of directors of Noah Wealth, also sent an internal letter saying that the fund products affected by the incident had been delayed for six months to one year as a whole. At the same time, Noah Wealth has launched an in-depth survey of other products during their lifetime, and so far no similar problems have been found. As of the first quarter of 2019, the total amount of Goffer Management Fund was 171.1 billion yuan, and the total number of products was more than 800. While actively cooperating with the police investigation, Noah Wealth has taken the following measures:
2. Closure of relevant bank accounts;
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.
According to Noah Wealths official website, by the end of the first quarter of this year, the company had a total wealth allocation of 636.2 billion yuan, providing comprehensive services to more than 270,000 high net worth people.
Chaos: Jingdong said Chengxing was suspected of forging business contracts for external fraud, while Noah said Goffer assets had sued Jingdong.
For Chengxing International Holdings, Noah Wealth and Jingdong Century Trade, the China Foundation Daily gives a concise and understandable introduction: Luo Jing carries out supply chain financing in Noah Company under the business contract between Chengxing International Holdings and Jingdong; and Noah packages this basic asset as a fund product and sells it to Noah Company. Investor.
In this regard, the Beijing East Group made an account of the Chengxing incident on the afternoon of July 9, saying that Guangdong Chengxing Holding Group Co., Ltd. (hereinafter referred to as Chengxing) is a general supplier of Beijing East and has certain business in Beijing East. Without knowing anything about it, Chengxing is suspected of forging contracts with Jingdong and other companies for fraud. In this regard, Jingdong has reported the case to the local public security organs.
It is noteworthy that Jingdong also claims 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. In the case of Geoffrey being fraudulent, Jingdong has actively cooperated with the police. Conduct an investigation.
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.
According to industry and Commerce data, Beijing Jingdong Century Trading Co., Ltd. was established in 2007 and its legal representative is Liu Qiangdong.
Chengxing International Holdings said in the announcement that it was impossible to determine why Luo Jing was detained in criminal detention. Boxin shares did not mention the cause of the arrest of the accused, but said that the relevant matters still need further investigation by the public security organs.
Strangely, on Monday and Tuesday, two trading days after the announcement, Boxin shares unexpectedly reaped two consecutive trading boards.
On July 8, Boxin shares fell to the lowest level since September 2015, but when it opened in the afternoon, it was pried off by about 700 million yuan of huge purchases. It took only three minutes to change from a stop to a stop. The stock price was up to 20% of its value, with a time-sharing turnover of 700 million yuan and a turnover rate of over 30%, which was equivalent to half of the current trading chips. Once. As of the closing date, there were 97,200 hands blocking the trading, with a turnover rate of 60.99%.
On July 9, the stock closed again.
According to China Foundation Daily, people in the industry said that Boxin shares have been shelled for many years and sold shells three times in the past ten years. With the accuser being detained again, it is very likely that some people will take advantage of low suction, and the controlling shares of listed companies will be changed again.
Chuang stock? Chengxing International Holdings has fallen sharply several times before
Before the flash crash, the stock price of Chengxing International Holdings had fallen sharply several days ago. The stock fell 10.2% on June 27, 15.74% on July 2, 16.14% on July 4 and 8.93% on July 5.
Chengxing International Holdings has also been questioned as Zhuang shares. According to the Daily Economic News, from less than HK$1 in the second half of 2015 to more than HK$9 in April this year, Chengxing International Holdingsshare price has risen several times, but the daily average trading volume is not too large. Choice data show that the average daily turnover of Chengxing International Holdings in the past three years is about HK$6.7 million.
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%.
Noah Wealth stressed in the Chinese announcement that the change is not a transfer of equity, but a pledge of equity, and the company is not a shareholder of Chengxing International Holdings.