According to Caixin on December 31 (Reporter Yan Jun), on the last day of 2024, the public offering industry remains unsettled. It is reported that Jiangxin Fund chairman Sun Zhenliang has been taken away for investigation. Multiple insiders have confirmed to the reporter that this is indeed the case.

As a small public fund ranked outside the top 150, Jiangxin Fund does not have a strong presence. One impressive incident this year was in May when the company announced a change in senior management, signaling the collective departure of five executives, including vice presidents Zheng Yu, Wang Anliang, Li Zhen, Wang Peng, and Chief Information Officer Fu Ming.

Among them, Zheng Yu's reason for departure was retirement, while the other four left for "personal reasons." The public offering industry has traditionally seen high personnel mobility; however, such a concentrated departure of executives for personal reasons is unusual. Nonetheless, due to the company's low profile, it only garnered attention within the industry.

Sun Zhenliang has been with Jiangxin Fund since its inception and previously served as the head of the Jiangxin Fund preparatory group. According to the current executive announcement on the official website, Sun Zhenliang remains the chairman of the company.

A rare occurrence: a chairman being taken away for investigation.

As an asset management institution primarily focused on to C business, public funds must comply with strict regulations. For instance, public funds undergo self-inspections every quarter and produce reports, conducting a comprehensive self-inspection at the beginning of each quarter for the previous quarter. Since the beginning of this year, regulators have repeatedly emphasized strict regulations, highlighting the need for strong oversight and strict management of the market according to laws and regulations.

In fact, due to a complete compliance and risk control system, it is not common for public fund executives to be taken away for investigation or to assist in investigations. The insiders mentioned that the circumstances surrounding Sun Zhenliang's being taken away may involve economic matters.

Public information shows that Sun Zhenxi graduated from Jiangxi University of Finance and Economics with a major in investment. He has held key positions at Jiangnan Securities Yichun Branch, Tianjin Branch, and later served as the General Manager of Guosheng Securities Nam Cheong Bayi Avenue Securities Branch. At that time, Guosheng Securities invested to establish Jiangxin Fund, and Sun Zhenxi has been responsible for the preparation of Jiangxin Fund since 2011, serving as the leader of the Jiangxin Preparatory Team, making him a high-level executive and elder of the company.

Jiangxin Fund officially began operations in 2013, becoming the 75th public fund management company in the country, with Sun Zhenxi serving as the first Chairman of Jiangxin Fund.

In recent years, development has stagnated.

After 11 years since its establishment, the public offering management scale of Jiangxin Fund was only 2.544 billion yuan as of the end of this year's third quarter, with non-monetary funds at 2.075 billion yuan, ranking 168.

From the current equity structure, Guosheng Securities has a 30% shareholding, while Shandong Gold Phoenix Investment Co., Ltd., Anhui Hengsheng Sunshine Holdings Co., Ltd., Yingtan Jufu Investment Management Limited Partnership, and Yingtan Hongshi Investment Management Limited Partnership each hold 17.5%.

According to the shareholder information from Qichacha, the shareholding platforms of Sun Zhenxi, Yuan Liang, Chu Ying, and other executives, Yingtan Jufu Investment Management Limited Partnership, and Shandong Gold Phoenix Investment Co., Ltd. have had their shares frozen.

From the outside, the development of Jiangxin Fund also experienced a stable upward period. From the establishment of its first product in 2014 to 2017, the scale increased from 1 billion to 4 billion. However, in 2017, due to major shareholder Guosheng Securities' plan to sell its stake in Jiangxin Fund, it became a turning point in the company's development.

According to company information, Guosheng Securities transferred its 30% stake to Zhongjiang International Trust, but the transfer plan was shelved due to being deemed non-compliant with shareholder requirements. Consequently, Jiangxin Fund fell into a stagnation period. Zhongjiang International Trust was later renamed as well-known Xuesong International Trust, and the subsequent storm of Xuesong Trust is another story.

The last new Fund issued by Jiangxin Fund was also fixed in August 2017, and it has been 7 years without any new Fund issued. Currently, the company has a total of 9 products under its umbrella, with 3 having become mini Funds. The two largest products are Jiangxin Hongfu Pure Bond and Jiangxin Tianfu, both exceeding 0.7 billion, while the only equity Fund, Jiangxin Tongfu, has a scale of only 12 million.

The decline in scale has also led to poor revenue for Jiangxin Fund. According to a Guosheng Financial Holding Inc. announcement, Jiangxin Fund's revenue in 2023 was 16.685 million yuan, a decrease of 18.5% compared to the same period last year, mainly due to a significant reduction in separate account business scale; the company's Net income suffered a loss of nearly 45.695 million yuan, a decrease in loss of 31.5% in the same period, attributed to investment losses.

The scale of public Funds management has surpassed 30 trillion. As the industry progresses robustly, the Matthew effect intensifies, leading to stronger companies becoming even stronger. For small and medium-sized Fund companies, even those that previously had an aura now face more stringent survival conditions. For Jiangxin Fund, which lacks strong shareholder support and has stagnated in operations, the challenge is even greater in finding a way to break through and establish itself in the industry.