The arrest of a Post-70s chairwoman triggered a series of huge thunderbolts amounting to 3.4 billion yuan between A-share, Hong Kong-share and American-share companies, even giants like Jingdong and Suning.
At noon on July 5, Boxin Shares (600083.SH) announced that Ms. Luo Jing, the actual controller and chairman of the company, was detained by the police on June 20.
Just the day before his detention, Luo Jing, the chairman of Chengxing International Holdings, a listed company in Hong Kong shares, pledged his shares to Noahs wealth, involving an amount of 3.4 billion yuan.
Because of the thunder, the stock price plunged 20% overnight. Noah Wealth wanted to explain the matter. Unexpectedly, this explanation led to Jingdong.
The arrest of A-share chairwoman triggered serial bombing
At noon on Friday (July 5), Boxin announced that 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 by the Yangpu Branch of Shanghai Public Security Bureau on June 20, 2019 and June 25, 2019 respectively, pending further investigation by the public security organs.
Photo Source: Chengxing International Official Website Screenshot
According to the data, Luo Jing, a Hong Kong native of China, was born in 1971 and holds an MBA degree from Hong Kong University of Science and Technology.
In 1996, Luo Jing founded Chengxing International Group in Hong Kong, which owns Chengxing International Holdings (02662.HK), A-share listed company Boxin Share (600083.SH) and Singapore motherboard listed company Camsing Health Care (BAC).
Luo Jing also serves as chairman and executive director of Chengxing International Holdings and Camsing Health Care.
On the day of the announcement of the arrest of the chairman, the share price of A-share company Boxin dropped and stopped, but unexpectedly continued to rise and fall in the first two trading days of this week.
On the contrary, Chengxing International Holdings, a Hong Kong stock, plunged 80% this week. It was this Hong Kong stock company that stepped on a huge thunderbolt of 3.4 billion yuan.
US stock Noah Wealth announces that it is worth 3.4 billion yuan to step on the thunder
Before the evening of July 8, Noah Wealth announced that its credit fund of Shanghai Goffer Asset Management Company (hereinafter referred to as Goffer Assets) 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 the police for suspected fraudulent activities. As fund manager, Goffer Assets has taken various legal actions and promised to fulfil 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% on July 8, lost about $500 million in market value, and plunged more than 26% on July 9.
This is not the only reason why Noahs wealth has plummeted, as there are also reports that Noahs wealth is a shareholder in Chengxing International Holdings, holding 670 million shares.
The list of shareholders of Chengxing International Holdings in stock-trading software shows that: Noah Fortunes Goffer Assets, Shanghai Noah Investment Management Co., Ltd., Genesis Core Enterprise Series Private Equity Fund, and Noah (Shanghai) Finance Leasing Co., Ltd., all appear in the column of Chengxing International Holding Shareholders, with a share-holding ratio of 62.84%.
In this regard, Noah Wealth official website issued a special information note, mainly explaining three points:
1. Noah Wealth is not the shareholder of Chengxing International Holdings, it is not the transfer of equity, but the pledge of equity.
2. Stock-speculation software shows that Noah Wealth is the controlling shareholder of Chengxing International. According to the regulations of the Hong Kong Stock Exchange, when disclosing such pledge subject, it should penetrate upward to the actual controller. So Noah Wealth, the upper shareholder of Goffer Asset, and Ms. Wang Jingbo, the actual controller, also disclosed it together.
It is noteworthy that the date of signing the Equity Pledge Contract for Goffer Assets and Bearing International Holdings is June 19 this year, the day before Luo Jings criminal detention.
So far, things seem to be over. It seems that Noah Wealth stepped on a thunderbolt of Chengxing International Holdings.
But at this time, Wang Jingbo, founder and chairman of the board of directors of Noah Wealth, sent an internal letter, mainly to appease customers and employees and tell you what the company has done to mitigate this risk. However, in this letter, the first sentence of Wang Jingbo attracted peoples attention.
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.
Simply put, Luo Jing will carry out supply chain financing in Noah through the business contract between Chengxing International Holdings and Jingdong, while Noah Wealth will package this basic asset as a fund product and sell it to investors.
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However, regarding the content of Wang Jingbos internal letter, Beijing Oriental denied it to the daily economic journalists yesterday (9 July): Chengxing is suspected of forgery and fraud of Jingdongs business contract.
In the Information Note on Chengxing Incident, the eastern side of Beijing indicated that:
1. 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.
3. We hope that Goffer will face up to his management problems and not try to pass the buck by confusing audiovisual issues. Goffers lawsuit against Jingdong for no reason has had a serious impact on its reputation. Jingdong solemnly condemns Goffers act of neglecting the facts and reserves the right to take legal measures against it.
Not only did Beijing deny that, yesterday afternoon, Chengxing International Holdings also responded that Chengxing was not a member company of the company, and there was no contract between the company and Jingdong as claimed by the news.
However, Noah Wealth does not agree with the statement of Jingdong and Chengxing International Holdings. It reissues the statement that:
1. Chengxing International is a supplier of Jingdong, and there are a lot of long-term transactions between the two sides.
2. Geoffrey has filed judicial proceedings against Chengxing and Jingdong for this supply chain financing.
3. Goffer is actively cooperating with the police investigation and respecting the final judgment of the judiciary.
In addition to Jingdong, Suning, another e-commerce giant, has also been affected.
According to public information, Yunnan Trust once sold a Yunyong No. 1 Collective Fund Trust Scheme on August 3, 2018, with a product size of 50 million yuan and a period of 12 months, which has not yet expired.
The purpose of this project is to purchase the receivables held by Guangzhou Chengxing Marketing Management Co., Ltd. (including but not limited to Jingdong, Suning, etc.) as the payer. The purchase price is calculated at 80% of the amount of receivables, and the basic receivables can be purchased circularly during the period of trust.
In this project, the first source of repayment is that the repayment funds of Suning Easy-to-buy are used to offset the repurchase price.
The second source of repayment is the controller of Chengxing International and the guarantor of the project, Luo Jing, who provides joint and several liability guarantee. If the repurchase fund of Guangzhou Chengxing is not enough to cover the trust principal and financing cost, Luo Jing will repay the loan.
On the afternoon of July 9, a person close to Suning told 21st Century Economic Report that the financing of Chengxing International and Luo Jing had nothing to do with Suning, and Suning had no direct capital dealings with the company.
Source: Daily Economic News Responsible Editor: Shi Jianlei_NBJ11331