Noah HoldingsThe fund under Goofy Asset Management is forChengxing International HoldingsThe total principal involved in the supply chain financing provided by the relevant third party is about 3.4 billion yuan. On the evening of July 8, Wang Jingbo, founder and chairman of Noah Holdings, released an internal letter saying that there was indeed a risk in the funds related to Chengxing. Gophie, as a manager, took the quickest action as soon as he discovered the risk factors. effectively safeguard the interests of investors.
She said that first of all, the relevant funds will be extended for half a year to one year as a whole in accordance with the regulations. From the discovery of the risk to today, the company has done the following six things: increased the stock pledge of listed companies and seized the shares of listed companies; closed down the relevant bank accounts; issued a reminder, requiring the payer to fulfill its repayment obligations in accordance with the debt-for-swap agreement; and initiated a disclosure announcement on the compliance of investors in the fund. Criminal and judicial proceedings have been instituted against the relevant parties for funds that have expired, and the record has been filed with industry associations and regulatory authorities.
Noah Holdings said in a notice on the same day that since its independent operation in 2005, Noah Holdings has been operating in compliance with the principles of good faith, diligence and diligence in the management and use of fund property. Noah has no capital pool, no term mismatch, all its products are managed by third-party qualified financial institutions, assets and corresponding funds are managed in accordance with the fund contract, maintain independent operation, the risk will not be transmitted to other products; after discovering the risk factors of the project, Noah immediately launched an in-depth inspection of other products during the duration, and so far no similar problems have been found.
The full text of the internal letter is attached:
Hello, all Noah:
We have a series of funds of core enterprises, and the investment target of the fund is mainly to Chengxing international related parties (referred to as "Chengxing") about its relationship with BeijingJingDongThe claims on accounts receivable between Century Trading Co., Ltd. provide supply chain financing, and the actual controller of Chengxing Company has been criminally detained by Chinese police on suspicion of fraud.
Gophie assets in the survival and management of the fund, has taken various legal measures in advance to protect the legitimate rights and interests of fund investors. As a fund manager, Gophie assets will continue to perform its duties as a manager.
Because Chengxing Company is suspected of criminal fraud and the case is still under investigation, we are not completely clear about a lot of information, and it may not be the best time to communicate, but because Noah is an almost transparent company with no secrets, so we do a completely transparent, 100% status quo communication and synchronization here. I think this is also Noah's gene, and I am convinced that if we all show what we want in our hearts and make the information symmetrical, we can really think and face together. You will contribute all your strength, and we will form a positive and upward energy.
At present, there are risks in the funds related to Chengxing. Gophie, as a manager, takes the quickest action to safeguard the interests of investors as soon as he discovers the risk factors.
The core value of the company is integrity and honesty. From the occurrence of 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 out but cover up the problem. Cover up another mistake with one mistake; in the following period of time, the company will try its best to find out the situation and preserve the fund assets. At present, it will take some time for the situation to become clear.
First of all, the relevant funds will be extended for half a year to one year as a whole according to the law. from the discovery of the risk to today, the company has done the following things:
1. Increased the stock pledge of listed companies and seized the shares of listed companies.
two。 Closed down the relevant bank accounts.
3. Issue a reminder letter requiring the payer to fulfill its repayment obligations in accordance with the debt-swap agreement
4. And initiate the information disclosure announcement on the compliance of the investors of the fund.
5. Criminal and judicial proceedings have been brought against the relevant parties for the funds that have already expired.
6. To put on record with the trade association and the regulatory unit.
At the same time, we contacted some large distressed funds, made effective exchanges, reached some preliminary consensus, and put forward some practical proposals before the expiration of the fund to reassure customers.
As we all know, in 2014, we encountered the Jingtai incident, which was blackened by both eyes and had no experience in dealing with it. 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, maximize substantive breakthroughs, and have a positive effect on the rebate of the entire fund, thus protecting the rights and interests of clients.
Therefore, with the occurrence of this incident, I also hope that all staff will not spread false information and do a good job in customer communication.
In the case of the company dealing with the Jingtai incident, although the process was difficult, it accumulated experience, judgment and decision-making power, and finally successfully came to an end to protect the rights and interests of customers. At present, our core team has reached a consensus that we have the confidence and determination 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 is exhausted, and the price of capital goods no longer rises, there will be more and more thunderstorms and more and more systemic risks. As an asset management agency of a certain scale, it is really difficult to avoid risks 100%. One of the fundamental reasons for the incident we encountered this time is that the macro market is currently at the end of the credit cycle, which may also be a fate that the financial industry cannot resist.
But we are a very healthy company as a whole, 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 events.
Here, I would also like to appeal to you that if you can change the company's genes through this matter, from marketing to products, from risk control to investment management, there is a comprehensive consensus: from non-standard fixed income products driven to standardized fund drivers; combined, net worth products are the only direction; get rid of the huge path dependence of non-standard fixed income assets. So, Noah and Goofy will really grow into a private bank and asset management company in the sense of international standards.
This incident has strengthened our road of transformation and awakened us in a cruel and strong way.
We are engaged in the financial industry, we make a profit by managing risks, and we must have a deeper understanding: risks do not disappear, they can only be dispersed. If we really have a consensus and break through inertia, this incident will be a great and profound good thing for us.
Our core management, the second-generation management team, will be more confident, more comprehensive, and work together to move forward.
The company has formed a leading group for the project, and other relevant personnel have divided their work, fully supported the handling of the project, and made every effort to protect the interests of investors.
I am convinced that our management team has the confidence, determination and ability to solve this incident. We also need your support, please financial planner partners believe us, but also pass on confidence to your customers, give us valuable processing time, I believe we will try our best to strive for the best results.
Still wave
July 8, 2019