On the afternoon of May 9th, rumors began to spread in the private equity circles about the “Runaway of Rui Fengda Assets,” a private equity entity with a size of over 2 billion, and its products have been confirmed as unredeemable. Currently, the Shanghai police have sealed the offices of Rui Fengda.
According to the Chinese media “Securities China,” multiple confirmations have validated the above-mentioned rumors. It is reported that the involved private equity firm is officially named Zhejiang Rui Fengda Asset Management Co., Ltd. (hereinafter referred to as “Rui Fengda”). Currently, the private equity products are unable to be redeemed, the actual controller of the company has become uncontactable, and some investors have already filed reports.
Industry insiders have stated that the products under Rui Fengda have been confirmed as unredeemable. Another informed source mentioned, “The methods employed by this private equity firm are extremely malicious, and the investors mainly consist of institutions, including various securities firms, asset management, and proprietary trading.”
Information from the “National Business Daily” revealed that a knowledgeable private equity source disclosed, “The boss of Rui Fengda used 500 million of the funds as subordinate capital, with a minimum investment entry of 20 million, in a 1:4 priority-subordinate structure, offering an 8% guaranteed return, with a 4% commission for Rui Fengda, higher than P2P. The promotional materials of the company featured many fund managers, however, none of them were ever seen. Each of the company’s products had an annualized yield of over 20%, without any drawdown. Could this be another case of ‘you pursue the interest, while they pursue the principal’?”
An industry insider informed “Securities China,” stating, “Last year, Rui Fengda was actively seeking priority funding in the market, issuing structured products in cooperation with trusts, promising high returns. We extensively investigated them but found that the investment logic of this private equity firm was highly convoluted and suspicious. When we suggested visiting the company’s premises, they kept making excuses, and eventually only reluctantly showed us the middle and back-office areas, without us observing the research and investment office. We sensed issues and ultimately did not engage in any cooperation with Rui Fengda.”
An employee of Rui Fengda’s marketing department mentioned that he had only been with the company for over two months and was still in the probation period, unaware of the company’s operations and the boss’s specific circumstances, but recently, several employees of Rui Fengda were indeed processing resignations.
On the morning of May 10th, reporters from “Securities China” discovered at Rui Fengda’s Shanghai office that some of the company’s logos had been damaged, with several investors on-site negotiating.
As per information from “Finance First,” the Pudong Branch Economic Investigation Brigade of Shanghai arrived at the scene on the 10th. They sealed off Rui Fengda’s offices. The Pudong Branch Economic Investigation Brigade requested investors seeking rights protection to submit relevant materials at the brigade’s window. Currently, no case has been filed, and a decision on whether to file a case will be made within 60 days after preliminary review.
Information disclosed by the China Securities Investment Fund Association shows that currently, Rui Fengda has a total of 70 registered products, with over half of the products’ custodians being China Merchants Securities. Additionally, part of the products are also entrusted with Guotai Junan, CITIC Securities, Huatai Securities, GF Securities, Caitong Securities, China Galaxy Securities, and Huaan Securities.