In recent years, the regulators have frequently "swords" in response to the chaos in the private market.The latest list of a batch of suspected missing private equity institutions shows that 35 private equity institutions are among them.According to a reporter from the "Economic Information Daily", 7 batches of suspected missing institutions have been announced during the year, reaching a total of 344.In addition, 635 private equity institutions were cancelled during the year. The reasons for the cancellation included losing contact and failing to actively contact them, failing to submit special legal opinions after the expiration of the time limit, and failing to continuously meet the registration requirements of managers.
On the evening of July 6, the China Securities Investment Fund Association (hereinafter referred to as "China Fund Association") released the 48th batch of suspected missing private equity institutions, including Shenzhen Xinyan Investment Management Co., Ltd., Zhonghan Asiaxin Asset Management Co., Ltd. and other 35 private equity institutions.
The China Foundation Association requires that private equity firms that are suspected to have lost contact should handle the verification task of missing contact within 5 working days from the date of the announcement, and provide signature materials through the AMBERS system as required.Those that are not completed within the time limit will be identified as “disconnected (abnormal)” private equity institutions, publicized on the private fund manager’s classified information publicity page, and marked in the “Institutional Integrity Information” column of the private equity fund manager.It is worth noting that if the private equity institution in the state of missing contact has not completed the verification task of missing contact within three months, the private equity fund manager registration will be cancelled by the China Foundation Association.
In fact, this is also the seventh batch of lists of suspected missing private equity institutions announced this year.The reporter reviewed the announcements issued by the China Foundation Association during the year and found that since January 11 this year, the China Foundation Association has successively announced the list of the 42nd to 48th batches of suspected missing private equity institutions, and the total number of institutions has reached 344.Among them, the 42nd batch and the 43rd batch with the largest number of public announcements, the number of public announcements has reached 70.
In addition, according to the data released by the China Foundation Association when it announced the list of the 44th batch of missing private equity institutions, as of March 1, 2022, the China Foundation Association has announced 1,531 suspected missing private placements including Beijing Zhongcai Jiaying Fund Management Co., Ltd. mechanism.Based on this calculation, plus the number of four batches of institutions announced later, the number of all suspected missing private equity institutions may have reached 1,674.
In fact, in addition to losing contact and not taking the initiative to contact, reasons including failure to submit a special legal opinion after the expiration of the time limit may also be the reason for the supervision and cancellation of private equity institutions.According to the monthly report on the registration of private fund managers and product filings issued by the China Foundation Association, from January to May this year, China Foundation Association cancelled 72, 33, 192, 160 and 178 private equity institutions respectively, and a total of 178 private equity institutions were cancelled during the year. 635 institutions.
For example, on June 24, the China Foundation Association issued an announcement showing that 30 private equity fund managers, including Beijing Jinyao Capital Management Co., Ltd., had abnormal business conditions and failed to submit compliance with the written notice within 3 months. The association will cancel the registration of the private equity fund managers of the 30 institutions, and record the above circumstances into the capital market integrity file database.
It is worth noting that some private equity institutions that have been cancelled have been involved in embezzlement and misappropriation of fund properties, overdue non-payment, and explosion of their products.
For example, among the deregistered private equity managers, Hongsheng Asset Management (Shenzhen) Co., Ltd. (referred to as "Hongsheng Assets"), has experienced product explosions.Previously, from November 2019 to January 2020, the listed company Zhonglai Co., Ltd. spent 200 million yuan to purchase four private equity fund products managed by Hongsheng Assets and Qianhai Zhengfan, and obtained the "guarantee that the company can recover the principal and Get an annualized 10% return on investment" promise.However, the net value of the fund purchased by Zhonglai Shares in 2020 saw a huge loss.Jolywood’s 2021 annual report shows that the company has filed a lawsuit or arbitration against Hongsheng Assets, etc., and the case is still under trial.
Another deregistered Shanghai Haoqi Investment Management Co., Ltd., its legal person Ji Hailin once spent 10 yuan to forge government documents in order to increase the credibility of the fund's issuance and promotion, and used it for publicity.However, it raised 700 million yuan of private equity product investment projects, but it was overdue and could not be paid.According to the China Judgment Documents Network, Ji Hailin was convicted of forging official documents of state organs and was sentenced to 6 months in prison, suspended for 1 year, and fined 6,000 yuan.
Industry insiders believe that the cancellation of funds is not a liquidation, but because private funds violated regulations or voluntarily canceled, which will help to clear the development environment of the industry and improve the overall quality of private institutions.The China Foundation Association also stated that it will continue to adhere to the basic policy of "supporting the superior and limiting the inferior", and continuously improve the private equity fund industry integrity information recording mechanism to promote the industry's compliance and healthy development.
(Editor in charge: Hua Qingjian)
