Zhitong Financial App News, China International Capital Corporation (03908) issued an announcement that the company's wholly-owned subsidiary China CICC Fortune Securities Co., Ltd. (CICC Fortune) is involved in a litigation announcement. CIC Securities financing Capital Stock Pledge No. 4 targeted Asset Management Plan (targeted Asset Management Plan) eliminated the client's directive and launched a stock pledge repurchase transaction with financier Hou Jianfang in June 2017. In the event of breach of contract in the later period, the financier fails to repurchase in advance or provide supplementary pledge in accordance with the relevant agreement on stock pledge.
According to the contract of the directed asset management plan, the company, as the manager of the directed asset management plan, sues the financier Hou Jianfang and his spouse on behalf of the directed asset management plan according to the instructions of the client. The lawsuit was accepted by the Guangdong Provincial higher people's Court, and the amount of the subject matter of the lawsuit is about 547.5 million yuan.
On February 15, 2019, the attorney sent the notice of acceptance of the case by the higher people's Court of Guangdong Province to our company, the cause of which was a pledged securities repurchase dispute. After the Guangdong Provincial higher people's Court accepted the lawsuit, Hou Jianfang raised an objection to jurisdiction, and the Supreme people's Court ruled that the case was under the jurisdiction of the Shenzhen Intermediate people's Court.
In this lawsuit, the company, as the manager of the directed investment management plan, carries out the litigation activities in accordance with the instructions of the client in accordance with the contract of the directional capital management plan, and the costs or losses arising from the litigation activities shall not be borne by the company. The entrusted assets are independent of the company's own property and do not involve the company's own funds.
Recently, the company received a "civil judgment", and on June 5, 2020, the court ordered Hou Jianfang, the financier, to repay the financing capital, interest and liquidated damages, and to bear the litigation costs; it was ruled that the company had priority to receive compensation on the discount, auction or sale proceeds of the baby eagle farming and animal husbandry shares pledged by Hou Jianfang. The judgment has come into force and the case has been closed.