On May 20, the China Securities Fund Association (hereinafter referred to as the “China Association of Funds”) announced its decision to suspend private equity fund raising for four fund sales companies, including the well-known fund sales company-Chaoyang Perpetual Fund Sales Co., Ltd. (hereinafter referred to as “Chaoyang Sustainability”). In addition, Yangzhou Guoxin Jiali Fund Sales Co., Ltd., Lihe Fortune (Shanghai) Fund Sales Co., Ltd., and Shanghai Jinggu Fund Sales Co., Ltd. have also been suspended from handling fund sales for 3 to 6 months.


Announcement shows that the China Foundation Association has recently received the “About the Suspension of Fund Sales from Shanghai Chaoyang Sustainable Fund Sales Co., Ltd.” The Decision on Measures (hereinafter referred to as the “Decision”) decision on administrative supervision measures suspended the company’s handling of fund sales for 6 months.

According to the “Decision”, the China Foundation Association believes that it has risks in internal control, personnel management, and appropriate management, which does not meet the requirements for conducting private equity fund raising business. According to the relevant self-regulatory rules such as the “Administrative Measures on the Fundraising Behavior of Private Equity Investment Funds”, it is decided to suspend your company’s private equity fund raising business.

The China Association for Fundamentals requests that Chaoyang Sustainability shall immediately cease private equity fund raising activities from the date of receipt of this decision, and shall not engage in the following activities during the suspension of business: sign new Sales agreement, promotion and promotion of funds, sale of fund shares (equity), and fund unit subscription / subscription (subscription). The company should do a good job of serving existing customers during the suspension period.

Tianyan inspection revealed that the Chaoyang Perpetual Fund Sales Company was established on January 24, 2011. The legal representative is Liao Bing, with a registered capital of 100 million yuan. The previous name was Shanghai Chaoyang Everlasting Investment Consulting Co., Ltd., renamed in 2015, is a wholly-owned subsidiary of Shanghai Chaoyang Everlasting Information Technology Co., Ltd.

Relevant persons from Chaoyang Perpetual Fund Sales Company told reporters that the agency obtained the China Securities Regulatory Commission Fund Sales License in 2015 and is subject to the supervision of the Shanghai Securities Regulatory Bureau.

“In 2018, due to the external macro environment, non-standard storms, asset cycle bad debts surfaced, and more than 6 billion of funds for 4 non-standard fixed income products sold by fund sales companies were overdue.” The person said After the product expires, the fund sales strictly perform the duties of agency agency in strict accordance with the relevant provisions of the private equity fund regulatory regulations. Always stand in the perspective of investors’ interests, communicate with the managers and the underlying assets as soon as possible, take judicial measures such as litigation and preservation, and claim rights and interests on behalf of investors. When the manager does not act, he will bear the costs of lawyers’ fees and litigation fees, etc., in order to solve the problem of overdue products.

Inquiry of public information can be seen that Chaoyang Yongxuan has involved the listed company Yangjie Technology (300373) in the investment of private equity “stepping on thunder” case. Yang Jie Technology announced that the investment principal of “Dongrong Huiwenhui No. 1 Fund Twenty-Fourth Phase” was 50 million yuan, which expired on November 3, 2018 and was not recovered. During the period from expiration to the company’s preparation of the 2018 financial statements, the company’s investigation and understanding revealed that the fund manager and agency Shanghai Chaoyang Perpetual Fund Sales Co., Ltd. (hereinafter referred to as “Chaoyang Perpetual Sustainability”) had problems such as chaotic fund management and unclear accounts. . In addition, Ye Zhen, the person in charge of Dongrong Group, replied clearly that most of the investors including Yangjie Technology who invested in Dongronghui Wenhui No. 1 Fund through Chaoyang Perpetual Investment are not on the current list of creditors of Dongrong Group. The company is not expected to recover the investment.

Subsequently, Yangjie Technology presented to the Hanjiang District People ’s Court of Yangzhou City the Dongrong Fund, Chaoyang Yongxing, Hangzhou Tuoji Investment Management Partnership (Limited Partnership) and its GP Hangzhou Jinque Investment Co., Ltd., Hangzhou Rongzinc Investment Partnership (Limited Partnership) and its GP Hangzhou Dongrong Investment Management Co., Ltd. filed civil lawsuits and applied for the preservation of fund assets and the freezing of fund account numbers. On January 22, 2019, the litigation documents were delivered to some defendants. The company has filed criminal charges against the Dongrong Fund and Chaoyang Sustainability with the crime of fraud to the Hanjiang Branch of the Public Security Bureau of Yangzhou City. The case was transferred to the jurisdiction of Hangzhou Public Security Bureau of Zhejiang Province. Yangjie Technology has not disclosed the latest progress of the case.

The aforementioned Chaoyang Perpetual Person further stated that Shanghai Chaoyang Perpetual Fund Sales Co., Ltd. respects the spirit of contract, abides by the regulations, and respects the decision of supervision, and will continue to promote the management Communication and fund disposal, safeguard the legitimate rights and interests of fund investors, and will continue to do existing customer service work during the suspension of business.

In addition to Chaoyang Sustainability, the China Foundation AssociationSales Co., Ltd. and Lihe Fortune (Shanghai) Fund Sales Co., Ltd. issued a decision to suspend business and suspended the fund sales business for 3 to 6 months respectively.

Most of these institutions are considered by the association to have risks in internal control, personnel management, and appropriate management, which do not meet the requirements for conducting private equity fundraising business.