Rui Xing is the warning sign of history, and will always follow the future.
Editor’s note: This article from the public micro-channel number ” Internet circle thing “(ID: quanneishi) , author: Ma Rong.
On March 7, 2019, Fan Yun, known as “Sister Sharp”, successively “fired” at Yi Huiman, the chairman of the China Securities Regulatory Commission.
“The maximum penalty of the Securities Law is only 600,000, which can’t solve any problems. Some people made tens of billions of dollars by cutting leeks, and more than one count, the total fine was 700,000!”
Zhao Wei and Huang Youlong were accused of cutting leeks.
Since 2016, Zhao Wei and his wife have registered with the shell company Longwei Media, and have almost no actual business activities. Total assets, net assets, operating income, and net profit are all zero, but they still expose their own 60 million yuan. Capital financing acquired 29.135% of the controlling shares of Wanjia Culture at a price of 3.06 billion yuan and a leverage ratio of up to 51 times.
The doubts don’t stop there. Wanjia Culture voluntarily gave up Longwei Media’s 150 million yuan penalty, and Zhao and his wife retreated.
A year later, the results of the Zhao Wei and his wife ’s “empty glove white wolf” case were announced. Wanjia Culture and Longwei Media each received a fine of 600,000 yuan. Zhao Wei and Huang Youlong were each fined 300,000 yuan and were taken. Five-year stock market ban measures.
According to the “Securities Law”, the maximum penalty for illegal domestic securities markets has been 600,000 yuan. Until the end of 2019, this standard was raised to 20 million yuan. But under the law of the time, even the punitive penalty was tickling for the Zhao Wei couple.
The processing results did not calm down investor anger, the super high returns and bad consequences brought by illegal activities, and the punishment severely unequal. Quite a lot of public opinion”Style penalties do not buy.
Huang Youlong quickly stated that “just and comfortable, rumors stop at the wise man”, Zhao Wei retweeted Weibo and said that “there is no doubt in his life”, but the comment function was closed, and the bursting sentiment of many investors was isolated.
In the rights protection community of some investors, the derogation of “vampire ghost” is not uncommon, and some people quoted “Zhuangzi Pixie” to express their dissatisfaction:
“Hooker steals, country stealer Hou.”
In the case of Kangmei Pharmaceutical’s “White Horse and Non-Malaysia” case, which shook the capital market, the problem of “three fines of alcohol” in the A-share market was exposed again.
Kangmei Pharmaceutical, a famous white horse stock with A shares, focuses on the production and R & D of pharmaceuticals. At its peak, Kangmei’s market value exceeded 120 billion yuan, second only to Hengrui Medicine, countless investors and even fund managers are crazy.
On April 29, 2019, Kangmei Pharmaceutical announced that it had exploded with more than 20 announcements. The investigation by the China Securities Regulatory Commission found that from 2016 to 2018, Kangmei Pharmaceutical was suspected of fraudulent invoice invoices, tampering of invoices, forging bank vouchers, and forging regular deposit receipts. The amount of money was only artificially increased, amounting to 29.944 billion yuan.
The question is turbulent, Kangmei Chairman Ma Xingtian had to issue an apology letter in the early morning of the next day: “We have a situation where internal control and financial management are not perfect due to rapid development … With the most sincere apologies. “
The angered CSRC has defined Kangmei as extremely strict: “premeditated, organized, long-term and systematic financial fraud, trampling on the rule of law, without awe of the market and investors, and seriously undermining the health of capital markets Ecology “.
In May, the Securities and Futures Commission made a penalty decision on Kangmei: ordered corrections and given a warning; imposed a fine of 600,000 yuan, imposed fines ranging from 900,000 to 100,000 on 21 responsible persons, and 6 main responsible persons from Access to the lifelong securities market is prohibited.
Compared to Kangmei Pharmaceutical, the US energy giant Enron, which was once stifled by falsifications, ranked seventh in the Fortune 500 during his lifetime. According to today ’s exchange rate, the total increase in profits is less than 15% . The price of Enron was the bankruptcy of the enterprise and the burial of the auditing company Anderson. Since then, the top five accounting firms in the world have become the top four.
More than a year later, also in the early morning of the company ’s announcement, a middle-aged man of the same age as Ma Xingtian also sent a letter of apology. “Too aggressive” and “too fast.”
Quick, probably the common thorn in middle-aged men.
1
On May 12, 2005, Yang Shaoxin, executive chairman and chief partner of PricewaterhouseCoopers China, told the China Youth Daily reporter that the phenomenon of fraudulent accounts by listed companies in China has occurred because their accounting accounts are based on domestic Prepared by accounting standards. The Chinese accounting standards and the accounting of developed western countriesThere are certain gaps in standards.
The First Financial Daily published a sad comment on this: Frankly speaking, the accounting records of listed companies in China are not untrustworthy, but how to believe them.
In Lu Zhengyao’s reputation as the “Lion of Capital”, Rui Xing’s top priority is to stabilize the military’s heart after exposure. On the second day of Ruixing ’s fraud, Ruixing stores in major cities across the country suffered from a rush of consumers, some users ’mobile phone ordering programs collapsed, and takeaways were seriously overtime.
As a result, Lu Zhengyao sent a picture and text circle of friends. The picture is the anime image of Ruixing employees:
“Today, we must be full of vitality, and friends, come on!”
The problem is that even if Liu Jian and Qian Zhiya are successively launched as two scapegoats, the development of the situation is no longer within the control of Ruixing.
On April 22, EST, Jay Clayton, chairman of the US Securities and Exchange Commission (SEC), publicly reminded investors not to invest their funds in Chinese company stocks listed in the United States. He also announced that China Prospects shares risk of insufficient coverage.
There is also news in China: handling fraud and fraud seriously. The meeting pointed out that in the recent period, some listed companies have disregarded laws and regulations, and involved financial fraud and other bad behaviors that infringe on the interests of investors.
He almost pointed to Rui Xing’s nose.
Almost everyone foresaw Ruixing ’s death. In the eyes of short-selling institutions in the US, Luckin has become a proper term referring to Chinese stocks that have been overturned due to financial fraud. Wolfpack Research shouted “Good Luckin” to iQiyi, and Citron also talked to whom to learn: “You are the next Luckin.”
For Ruixing, this is more like a jedi survival game. Since Ruixing blew up, the China Automobile Group has repeatedly transferred the shares it held to seek a respite. China ’s car rental shares and LP rights have been “sold”. “deal with. On the other hand, Lu Zhengyao had to fight Tai Chi with stakeholders such as Credit Suisse,
Not only is there a running wave of suppliers and financial institutions, but Lu Zhengyao’s pain is also the sky-high price claims from investors across the ocean. Under the rules of the US stock market, the total claims faced by Ruixing may exceed RMB 70 billion. With Ruixing’s slide-like stock price collapse, Ruixing’s ability to repay will be severely hit.
After the Nasdaq “Acknowledged Delisting” notice was exposed in China, Lu Zhengyao issued a personal statement in the early morning. The written tone is heartbroken: “I am never trying to deceive investors by” concept making the situation “. I really want to make the company bigger and create value for the society!”
Throughout the entire network, almost no one trusts this defense, especially companies interested in going to the US for IPO, they even hate Ruixing. The fall of Ruixing means that Chinese companies going public in the US are in a more dangerous situation, and the company may need a lot of roadshows to rebuild the collapsed letterAny cost.
Ideal Auto has been exposed to apply for an IPO in the United States and plans to raise at least 500 million yuan. After Ruixing thundered, founder Li Xiang retweeted Lu Zhengyao ’s public apology with a postscript:
“Send him five words, Sha Bi. Fraudster.”
The response from the US stock market is coming soon. Nasdaq has raised the threshold for new stock issuance. It is said that the scale of IPO fundraising needs to reach 25 million yuan, or at least one-quarter of the market value after listing. Some international investment banks also withdrew from underwriting Chinese companies’ IPOs. Credit Suisse, after being hit by the Ruixing incident, withdrew from the underwriting of Hong Kong stocks listed on the Internet medical platform Weiyi.
Despite Nasdaq ’s position that the tightening of the rules does not target Chinese stocks, the vast majority of listed companies involved in the New Deal are from China, and there is significant pressure on companies intending to go to the US for IPO.
2
After the opening of the Science and Technology Board, domestic investors burst into enthusiasm. Under the banner of not being able to vote for the science and technology innovation board without 500,000, the domestic science and technology innovation board fund set the minimum placement ratio record to 4.08%.
Some people explained that in the past ten years, the threshold for listing A-shares on the main board was relatively high, generally over 1 billion yuan, which is not suitable for Internet companies with a “horse race” model, while Nasdaq is about 1,000. 10,000 yuan or more. Therefore, we missed the earnings of a number of high-quality companies such as Baidu, Ali, and Tencent.
Science and Technology Board is a brand-new section for Nasdaq, which represents the relaxation of the entry threshold for A-shares and allows early-profit companies to enter the market, which represents the overall improvement of A-share competitiveness.
At the same time, the tightening of Nasdaq’s IPO policy is also seen as an upgrade.
American technology media Techcrunch is optimistic about NASDAQ ’s tightening of IPO rules. In its view, a strong and transparent market will boost investment. NASDAQ’s move is to support the upgrade of the original standard and protect its market for investors.
Reforms have been carried out on both sides of the ocean, and the trend of competition has taken shape. Today, Ruixing brings a new round of thinking to A shares. After the entry threshold is relaxed, there should be a strict supervision and punishment system, and Zhao Wei ’s three-spirited punishment for drinking will not be repeated.
Liu Qiangdong once said that after all, society is improving, and now it is much stronger than it was ten years ago, and more than it was thirty years ago. Those who win in the future must be those transparent and transparent business models.
As Xinhua News Agency commented on the Ruixing incident: “With the implementation of the new securities law on March 1, this year, the securities regulatory authorities have significantly increased the punishment of listed companies for financial fraud. An administrative penalty and criminal accountability , A multi-level accountability system composed of civil compensation and integrity records is being formed; at the same time, cross-border cooperation in auditing with overseas securities regulatory authorities will also be increasingly strengthened. ”
The reason why the company intends to hate Luckin in the US IPO is because a star in China ’s stock market has been deceiving in the back, and the status of China ’s stock market is regarded as between China and the United States.”Grey zone”, once the trust falls, the crisis of trust will be out of control.
Chinese stocks should also thank the management of Ruixing, represented by Lu Zhengyao, who first erected a warning sign “This road does not work” on the edge of the cliff. Tragedy.
Rui Xing is a warning sign of history, and will always be a successor.