Latest response! The head of the company has just won the "Number One Luxury House in Shanghai" and has been fined for billions of yuan in quantitative private equity

The Shanghai Securities Regulatory Bureau recently disclosed three fines related to the violation of regulations by the multi billion dollar quantitative private equity investment and its employees.

The Decision on Ordering Shanghai Minghui Investment Management Co., Ltd. to Take Corrective Measures issued by the Shanghai Securities Regulatory Bureau points out that in the process of conducting private equity fund business, Minghui Investment failed to implement effective internal control, failed to fulfill its duty of prudence and diligence, and violated the provisions of Article 4, Paragraph 1 of the Interim Measures for the Supervision and Administration of Private Equity Investment Funds. Therefore, it is decided to take corrective supervision and management measures against the company.

In addition, the Shanghai Securities Regulatory Bureau also issued a warning letter to Xu Shijun and Zhuo Lingchen, the employees of Ming Tan Investment: Xu Shijun and Zhuo Lingchen, as private equity fund practitioners, had the behavior of promoting private equity fund products to unspecified objects through WeChat official account in the process of engaging in private equity fund business. The Shanghai Securities Regulatory Bureau decided to take the supervision and management measures of issuing a warning letter to them, and required them to carefully study relevant laws and regulations, strengthen their awareness of compliance with laws and regulations, abide by laws and administrative regulations, and scrupulously abide by professional ethics and behavior.

Minghui Investment Response

On the evening of September 1st, Minghua Investment issued a statement regarding the punishment, stating that the company's management has convened a special meeting with relevant departments such as compliance risk control and human resources to convey the content of the Decision and the next steps for rectification.

Ming said that since May 8, 2023, Shanghai Municipal Market Supervision Administration, Shanghai Securities Regulatory Bureau and other relevant departments have carried out inspections on matters related to WeChat official account registered by employees of the Marketing Department. The verification results indicate that the relevant employees publishing relevant articles without the company's knowledge or authorization constitutes personal behavior of the employees. However, this incident also exposed the problems in the company's management. The company failed to implement effective internal control and fulfill its duty of prudence and diligence in supervising and controlling employee misconduct, timely supervising and urging employees to make standardized corrections, and other aspects.

Ming Ming stated that since the incident occurred, the company has taken disciplinary measures against the employees involved, and has taken measures such as improving rules and regulations, strengthening compliance approval processes, and strengthening employee compliance training. Next, in accordance with relevant laws and regulations, we will jointly draft a rectification plan and implement rectification measures led by the management and compliance department, further improve internal control mechanisms, strengthen personnel's compliance and legal awareness, and take practical and effective measures to prevent similar problems from happening again. The company will implement relevant requirements with the highest compliance standards and continue to diligently and responsibly create long-term value for investors, maintain industry image and development environment.

Previously jointly reported by peers

According to the official website of Minghui Investment, Minghui Investment was established in Shanghai Hongkou Hedge Fund Industrial Park in 2014. With strong data mining, statistical analysis, and technological research and development capabilities, Minghui Investment has built a quantitative asset management platform covering the entire cycle, multiple strategies, and multiple varieties. It has become the first quantitative private equity manager in China to manage a scale exceeding 50 billion yuan, and the company's management scale and long-term performance are among the top in the industry.

According to public information, Xu Shijun is the Managing Director of Minghui Investment, and Zhuo Lingchen is a salesperson for Minghui Investment Fund.

The reporter of Securities Times learned from his practice that recently Mingpeng Investment was ordered to take corrective measures by the Shanghai Securities Regulatory Bureau, which was because its employees had previously promoted private equity products on the "old private base" WeChat official account and disparaged other private equity institutions.

The news that a certain quantitative manufacturer MH is under investigation spread widely in the industry in May this year. The reporter learned that in the first half of this year, more than ten private equity institutions have submitted a report letter to the China Securities Regulatory Commission and the China Securities Investment Fund Industry Association regarding the illegal and irregular behavior of Shanghai Minghua Investment Management Co., Ltd. and its employees. Subsequently, the Law Enforcement Team of the Shanghai Municipal Administration for Market Regulation conducted an inquiry into Minghua Investment.

After the disturbance, the official account of "Old Private Foundation" has deleted a large number of articles and entered the freeze period of independent cancellation.

According to data from Private Equity Ranking Network, as of August 31st, Minghua Investment's performance so far this year is 5.1%, outperforming the Shanghai and Shenzhen 300 Index during the same period.

The representative product of Minghui Investment, Minghui Stable Growth Phase 1, has a latest net asset value of 5.6610 yuan as of August 25th this year. The product has earned 0.87% since its establishment and 466.1% since its establishment. It is jointly managed by Qiu Huiming and Jie Huanyu.

The leader captured the "Number One Luxury Mansion in Shanghai"

Not long ago, news spread widely that Qiu Huiming, founder and general manager of Minghui Investment, won a luxury mansion in Huazhou Junting, Pudong, Shanghai for 285 million yuan, making Minghui Investment well-known.

According to Alibaba Asset's official website, on August 28th, after 30 rounds of bidding, the entire residential building at No. 15, Lane 385, Yinliu Road, Pudong New Area, Shanghai, was sold for 285 million yuan at 11:11 am, with Qiu Huiming as the winner.

The entire residential building at No. 15, Lane 385, Yinliu Road, Pudong New Area, Shanghai, in this bidding belongs to garden residential buildings with a construction area of 1300.84 square meters. The residential area is Huazhou Junting.

The reporter found that Huazhou Junting is an international community with a single family villa, and the current reference average price is 97000 yuan per square meter. There are a total of 21 standalone villas in the community, with an average land area of 5 acres per villa, ranging from 1300 square meters to 1400 square meters per villa. Huazhou Junting is known as the "Number One Luxury Mansion in Shanghai" and "Number One among China's Top Ten Luxury Mansions". There is also a saying on social media that "there is Tan Palace in the west and Junting in the east.".

It is understood that the starting price of the residential property is 2214.8 million yuan, with a total of 5 people registering to participate. After 30 bids, it was ultimately won by Qiu Huiming. More than 70000 people watched the auction.