① Five executives of Jiangxin Fund left office on the same day. Among the four vice presidents, some responsible for fixed income business, as well as special account and institutional business; ② As a chess game of Guosheng Securities and Guosheng Financial Holdings, its development was clearly influenced and constrained by controlling shareholders; ③ It is worth noting that since August 2017, Jiangxin Fund has not released any new products.
Associated Press, May 12 (Reporter Feng Qijuan) Five executives of the Jiangxin Fund, which is less than 3 billion yuan, left office on the same day.
Jiang Xin Foundation announced changes in senior management personnel on May 11. The 4 deputy general managers and 1 chief information officer left office on May 10, and there are no arrangements for transfer to other positions in the company. Judging from the reason for leaving office, former vice president Zheng Yu left office due to retirement, and the remaining 4 executives all left office due to personal reasons. Former Chief Information Officer Fu Ming left office, and General Manager Yuan Liang took his place before appointing a new Chief Information Officer. After that, the only person left as the deputy general manager of Jiangxin Fund was Mr. Haoliang, and he has been in office for just over half a year.
Among the four vice presidents who left office, Wang Peng, Li Zhen, and Zheng Yutong joined the Jiang Xin Foundation in 2013. Both were promoted to Deputy General Manager in 2020, while Wang Peng was promoted to Vice President in 2022. Among them, Zheng Yu and Li Zhen served as the company's fixed income investment director and special account director respectively, while Wang Peng served successively as the head of the company's institutional business department and special account investment headquarters; Wang Anliang, the other vice president who left office for 5 and a half years, was hired as vice president in October 2018.
In addition to the latest high-level turmoil, Jiangxin Fund has also experienced shareholders' proposed liquidation and exit. Following Zhongju Hi-Tech's successful transfer of its shares in the Jiangxin Fund, Guosheng Securities also plans to liquidate its shares, which is ultimately blocked by the transferee's shareholder status.
It is worth noting that since August 2017, Jiangxin Fund has not released any new products. As a Jiangxin Fund under the chess game of Guosheng Securities and Guosheng Financial Holdings, its development is clearly influenced and constrained by controlling shareholders.
The majority shareholder intended to clear the position and exit
Jiangxin Fund was established in January 2013 with a registered capital of 180 million yuan. According to Tianyan Research, Jiangxin Fund is funded by Guosheng Securities, Anhui Hang Seng Sunshine Holdings Co., Ltd., Golden Kirin Investment Co., Ltd., Yingtan Redstone Investment Management Limited Partnership, and Yingtan Jufu Investment Management Limited Partnership, which invested 30%, 17.5%, 17.5%, and 17.5% respectively.
However, according to the shareholding status disclosed by Tianyan Investigation, of the five shareholders of Jiangxin Fund, Guosheng Securities showed that their shares were of high quality, while the remaining 4 shareholders all showed that their shares were frozen.
At the beginning of its establishment, the original shareholders of Jiangxin Fund included Guosheng Securities, Hang Seng Sunshine Group, and Zhonghu Hi-Tech, which held 49%, 31%, and 20% of the shares, respectively. By May 2013, Zhongju Hi-Tech announced that it would transfer shares in Jiangxin Fund, a fund company newly established in 2013. In the end, Jiangxi Golden Kirin Company transferred this portion of the shares for 20 million yuan. At the time, Zhongju Hi-Tech's announcement stated that Jiangxin Fund's revenue for the first quarter of 2013 was 2.446 million yuan, with a loss of 8.69 million yuan.
As the largest shareholder of Jiangxin Fund, Guosheng Securities once intended to clear its shares. I have to mention that in January 2017, the former shareholder Guosheng Financial Holdings intended to acquire 51% of Guotai Junan's shares and also transfer 30% of its shares in Jiangxin Fund to Zhongjiang International Trust (now renamed Cedar International Trust). In the end, Zhongjiang International Trust was unable to do so because it did not qualify as a shareholder.
The market's consensus is that the fluctuating changes in Guosheng Financial Holdings have always been an important reason for the stagnation in the development of Jiangxin Fund.
The scale is always at the end of the crane
Since its establishment 11 years ago, Jiangxin Fund's asset management scale has always ranked at the bottom of the industry. According to Wind data, the size of the Jiangxin Fund in the first quarter of this year was 2,853 billion yuan. Since the end of 2015, the company's asset management scale rose to nearly 3 billion yuan, and there was a lack of momentum, and the asset management scale mostly fluctuated around 3 billion yuan.
According to Guosheng Financial Holdings's 2023 annual report, Jiangxin Fund had revenue of 16.685 million yuan in 2023 and a net loss of 45.69 million yuan, ranking last in the public offering that disclosed public data. This is the fourth year in a row since 2020 that Jiangxin Fund has lost money.
The annual report also indicates that operating income decreased by 18.50% compared to the same period last year, mainly due to a drastic reduction in the scale of special account business and a decrease in operating income compared to the same period last year; in addition, by the end of the period, total assets had decreased by 31.21% compared to the end of the previous year, mainly due to a decrease in transactional financial assets.
Shortly after the establishment of the Jiang Xin Fund, before issuing public offering products, it attracted market attention because it participated in fixed growth through its special account products. It can also be seen from the resume of the vice president who left the job this time that the special account business is important to Jiang Xin Fund.
Let's also look at public funding products. Up to now, Jiang Xin Fund has a total of 14 products, mainly debt-based, managed by 3 fund managers, Gao Pengfei, Ma Chaoran, and Xue Chen. According to Tiantian Fund Network, the cumulative tenure of these 3 employees was 3 years and 199 days, 1 year, 22 days, and 43 days, respectively.
Looking back at executive changes over the years, since 2022, Jiangxin Fund's senior management level has gradually “fluctuated” significantly.
Chu Ying, a veteran of Jiang Xin Fund, has been the general manager since the company was founded. He stepped down at the end of 2022, and Jiao Mao took over as general manager; however, he stepped down after less than a year in office, and Yuan Liang was promoted from vice president to general manager. Up to now, Chu Ying and Jiao Mao are still members of the board of directors of the Jiang Xin Foundation, and Chu Ying is also a member of the voting committee.
When the changes in Guosheng Securities are underway
As a shareholder of Guosheng Securities Gold Holdings, Guosheng Financial Holdings' strategic arrangements for Guosheng Securities have also changed after about 8 years of holding.
Guosheng Financial Holdings issued an announcement on January 13, 2024, stating that in order to further integrate resources, improve efficiency, and focus on the main securities business, it will absorb and merge Guosheng Securities. It also stated that after the completion of the absorption and merger, it will help the company focus on the main securities industry, enhance the brand effect advantage of Guosheng Securities, improve the company's comprehensive financial service level, and better play the role of Guosheng Securities as the only fully licensed securities company in Jiangxi Province. After completing the merger and absorption, it is proposed to change the abbreviation of the securities to “Guosheng Securities”.
Faced with the continuous upward trend at the end of April, Guosheng Financial Holdings once again mentioned the merger in response, saying, “The merger has completed the corresponding internal approval process within the company and still needs to be approved by the relevant supervisory authorities before implementation. There is uncertainty about whether the matter can obtain relevant approval, when it will be obtained, and when the final implementation will be completed.”
Earlier changes in Guosheng Securities can be traced back to July 2022. At that time, Guosheng Financial Holdings issued an announcement stating that the company's shareholding structure was about to change, and the Jiangxi State-owned Assets Group took over. This is also a major change in the company's equity two years after it was taken over by the Securities Regulatory Commission.
As a game of chess between Guosheng Securities and Guosheng Financial Holdings, the development of Jiangxin Fund is clearly influenced and constrained by controlling shareholders.