Recently, a Chinese shareholder, Zhu Yongguo, filed a report against Yi Huiman, the chairman of the Communist Party’s Securities Regulatory Commission (CSRC), over a landmine incident at Kangde Xin, which has been blocked by the Internet on the mainland. The news has been blocked on the Internet. Some people have revealed that the incident involves the CCP’s Securities Regulatory Commission harboring interest groups and letting small and medium shareholders take the blame. And Yi Huiman’s predecessor, Liu Shiyu, fell in April 2019, but in 2017 had been publicly reported by the scholar Han Zhiguo, or panic was exploded more black material, in Time to invite guests to “private”.
The comprehensive network news, stockholders Zhu Yongguo real name report Yi Huiman documents show that Kangde Xin composite materials group of companies (Kangde Xin) in 2019 debt burst incident, the Securities and Exchange Commission involved in the role of the underwriter, the event directly led to 133,000 small and medium-sized shareholders were “cut leeks”, the subsequent rights process was continued to suppress The case started in 2018.
The CondeXin incident has continued from 2018 to the present. In 2019, the Securities and Futures Commission (SFC) said that Kangdexin was suspected of four consecutive years of financial fraud, illegal misappropriation of funds by its major shareholder, and misrepresentation of securities, and in July of the same year, it announced the suspension of Kangdexin’s shares, which faced delisting.
Previously in January 2019, Kangde Xin defaulted on a total of 1.5 billion (RMB, same below) bonds, but its financial report showed that the company had 15.316 billion yuan in monetary funds. Kangdexin said 12.2 billion was in the Bank of Beijing, which said its account balance was zero.
According to a March 8 report by the Epoch Times, George (a pseudonym), a confidant, disclosed that small and medium-sized shareholders of Kangde Xin have petitioned for the truth for two years, but have not received any response, and that officials have been maintaining stability and delaying. Psychological deterrence. George said that this incident is a case of the top and bottom harboring interest groups and making small and medium-sized shareholders responsible in disguise.
The informant further said that Yi Huiman, the current chairman of the CPC Securities Regulatory Commission, had a loan relationship with Zhong Yu, the former chairman of Kangde Xin, when he was the president of Jiangsu ICBC branch; after the crisis of Kangde Xin broke out, he illegally mortgaged 425 sets of core equipment and 3 pieces of land, totaling roughly 2.8 billion, to ICBC without going through the shareholders’ meeting and announcement. This is tantamount to acquiescing to this situation.
On the other hand, Bank of Beijing had signed an agreement with Kangde Xin to transfer all the incoming funds of the listed company to its parent company, Kangde Group’s account in Xidan of Bank of Beijing, while the records of Bank of Beijing still showed that these funds were in Kangde Xin’s account, and for four consecutive years, it issued statements, interest payment bills, online banking, and issued letters of inquiry to the audit firm in response.
After the crisis broke out, the CSC said it was not an embezzlement, saying the funds had been returned. George said that this is an insult to the intelligence of the people, each flow of funds to correspond to a contract, the majority shareholder sitting at Home with the money for four years, and then a sentence to say returned to you, this is in order to rely on money tricks.
Before Zhu Yongguo’s real name report, Ruihua Accounting Firm, which did the audit for Kangde Xin, sued the Communist Party’s Securities Regulatory Commission. The CCP SEC fined the firm 5.2 million yuan for the Kangde Xin incident; the firm said that a letter from the Bank of Beijing could prove Kangde Xin’s deposits, but the Bank of Beijing refused to release the flow of the imputed funds. The Ruihua accounting firm, once ranked No. 1 on the mainland, is facing closure after the Kangde Xin burst.
Public information shows that Yi Huiman had been working in ICBC from 1985 to 2019, serving as deputy governor of ICBC’s Zhejiang branch (1998), governor of Jiangsu branch (2000), and governor of Beijing branch (2005). in May 2008, he became deputy governor of ICBC. in May 2013, he succeeded Yang Kaisheng as governor of ICBC. in 2016 In May, replaced Jiang Jianqing as Secretary of the Party Committee of ICBC. in September 2016, became Chairman of ICBC and no longer served as President. on January 26, 2019, resigned as Chairman and was appointed by the State Council as Secretary of the Party Committee and Chairman of the CSRC.
Liu Shiyu, the former chairman of the CSRC, was also publicly reported before his fall
It is worth noting that the former SFC chairman Liu Shiyu was also publicly reported two years before his fall.
Liu Shiyu, then director of the Communist Party’s National Federation of Supply and Marketing Cooperatives and former chairman of the SFC, was announced by authorities late on May 19, 2019, to have “voluntarily surrendered” and was cooperating with the investigation.
According to comprehensive media reports, Liu Shiyu’s involvement in the case has the following general points.
It is said that Liu Shiyu may be involved in the rapid listing of a number of banks in his hometown of Jiangsu for a short period of time. During Liu’s three-year tenure, financial institutions in his home province of Jiangsu set off a collective listing boom. Even in 2018, the most difficult year to go public, there were still 22 listed companies, surpassing the capital province of Guangdong in one fell swoop. In the madness of issuing new shares during this period, his home province of Jiangsu, IPO approvals were the most numerous. In particular, a bunch of bank stocks were issued, with as many as seven such as Zhangjiagang Bank, Bank of Wuxi, Bank of Jiangsu and Changshu Bank. The total number of A-share bank stocks is only 31, accounting for more than 25%.
According to China’s Caijing magazine, the complex interests involved are an important reason why Liu Shiyu finally took the initiative to surrender.
According to an article published on May 20, 2019 by China’s financial self-media “Buckle Caixin”, Liu Shiyu’s investigation may have been triggered by the disappearance of Dai Juan, the general manager of the asset management center of Bank of Nanjing, who was earlier known as “the first sister of the debt market”.
The sources said that Dai Juan and others were very close to Liu Shiyu, and after Dai Juan and others were investigated, they gave up a lot of illegal information, and some of the important clues pointed to Liu, and the authorities followed the trail to investigate Liu, who knew that he could not escape the blame and finally chose to “take the initiative to surrender”.
It was reported that the “Dai Juan case” involved the transfer of interests in structured products, where someone sold subordinated structured products to officials or related interests, resulting in the transfer of interests and corruption.
A senior source in the Zhejiang capital circle was quoted in the Times report as saying, “Liu Shiyu’s problem is more complicated, and his voluntary surrender may be linked to the case of Qin Ling, son of Qin Guangrong, the former provincial party secretary of Yunnan. The case behind Qin Ling is then related to the Huarong Lai Xiaomin case.”
Liu Shiyu, who became chairman of the China Securities Regulatory Commission on February 20, 2016 after the 2015 stock market crash, was once known as the “fire-fighting chief” and his sudden fall still seems surprising.
In fact, as early as May 2017, Liu Shiyu has been publicly reported, almost accident.
On May 19, 2017, Han Zhiguo, a mainland economist and professor, publicly took to Weibo to question the alleged corruption of the new share issuance by the Communist Party’s Securities Regulatory Commission. Han said that from August 2, 2016 to January 24, 2017, a total of nine bank stocks were listed in the A-share market, and six of these nine newly listed bank stocks were actually from Jiangsu, accounting for 66.67 percent of the total. The new chairman of the CPC Securities Regulatory Commission, Liu Shiyu, is a native of Gouyun County, Jiangsu Province, and there is a possibility of special care for the initial listing of Jiangsu companies.
On May 22, Han again tweeted in an extremely strong manner that “new stock approvals cannot be laced with private goods, and since the new SFC chairman took office, he has been issuing new stocks at a rate of 10 per week, causing a huge impact on the market and leaving major hidden dangers for the future.” Han said that the SFC “has been issuing new shares in a big way,” and “has been offering a series of strange and bizarre regulatory measures one after another.
The blog also said, “The hard facts make one suspect that the SFC is using power for personal gain in the name of expanding direct financing, and it’s hard not to wonder if there is dirty power and money involved.”
Han strongly recommended that the Commission for Discipline Inspection and the Ministry of Supervision “intervene immediately” to halt the issuance of new shares, and asked the SFC and the Commission to conduct “a comprehensive investigation and systematic review.
In the morning of May 24, a number of microbloggers posted Han’s circle of friends, saying that SFC Chairman Liu Shiyu had invited Han to lunch to listen to his “opinions on the stock market and regulation”.
Later that day, Han posted that he and the SFC had “reached a consensus”.
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