Shenwan Lingxin Fund, a veteran fund company in mainland China, is currently facing unprecedented development challenges. On one hand, the risky operations of its core fund managers have led to a significant drop in product performance, causing heavy losses for investors. On the other hand, the company is entangled in labor contract disputes, being sued by employees and facing continuous decline in business performance, tarnishing its market reputation. The future prospects of the company have drawn wide attention from the market.
Recent judicial information shows that a labor contract dispute has led Yuan Moulun to sue Shenwan Lingxin Fund, with the court hearing scheduled for the afternoon of May 12, 2026. The exposure of this dispute not only reveals internal management concerns within the company but also puts Shenwan Lingxin, already under public scrutiny, back in the spotlight within the industry.
On August 12, 2025, the same court had already heard a labor dispute case between Yuan Moulun and Shenwan Lingxin Fund. However, the specific focus of the current case dispute has not been disclosed yet.
Shenwan Lingxin Fund has a strong shareholder background, with Central Huijin Investment Ltd. holding 67% of the shares through Shenwan Hongyuan Securities, and Japan’s Mitsubishi UFJ Trust and Banking Corporation holding the remaining 33%.
The major shareholder Shenwan Hongyuan Securities was formed by the merger of Shenying Wanguo Securities and Hongyuan Securities, possessing deep resources and influence in the capital market.
Despite the advantageous shareholder position, Shenwan Lingxin Fund has not been able to translate this into market competitiveness. In recent years, the company’s performance in the public offering industry has been mediocre until the recruitment of star fund manager Jia Chengdong from China Merchants Fund at the end of 2024.
However, within a few months, this fund went from being a “star product” to a “heavy loss zone”.
Analysis of the fund’s performance data by “Securities Industry Observer” reveals that its performance is considered “absurd”. As of September 8, 2025, just three months after establishment, the fund not only failed to make a profit but also incurred a loss of nearly 9%; as of March 31, 2026, the return rate since establishment plummeted to -18.28%, with a return rate of -12.12% since 2026, ranking at the bottom among similar products.
On April 10, Shenwan Lingxin Industry Selected Fund C shares fell against the trend by 1.38%.
Behind the dismal performance is the controversial aggressive investment operations of Jia Chengdong. According to insiders at Shenwan Hongyuan, Jia’s investment style has been jokingly referred to as “gambler-like”, completely deviating from the promises made at the fund’s launch.
As of now, the net asset value of the fund is only 0.8144, having dropped below 0.8 in March this year. According to Wind data, Shenwan Lingxin Fund’s net profit in 2025 was 71 million yuan, a decrease of 7.8% from 2024, marking the third consecutive year of declining net profits for the company.
On April 12, 2026, Shenwan Lingxin Fund announced that its sub-fund Shenwan Lingxin An Tai Tian Yi Pure Bond Fund might trigger termination of the fund contract due to the number of holders falling below 200 for 30 consecutive working days, marking the second similar liquidation warning for the product within the year.
The continuous collapse in performance has directly led to a substantial reduction in the fund’s size. By the end of the fourth quarter of 2025, Shenwan Lingxin Industry Selected Fund’s size had shrunk to only 695 million yuan, over 40% less than the initial size, leading to a complete collapse of investor trust. In response to market doubts, Shenwan Lingxin had previously stated that the short-term performance of the products did not meet expectations, urging investors to focus on long-term performance. However, investors have only witnessed a continuous expansion of losses.