On October 7, Jinsheng Guan, the actual controller and executive director of Jiusing Fund, passed away at the age of 78 due to a sudden illness.
Late on October 9, Jiusing Fund announced through its official WeChat account that Jinsheng Guan, the actual controller and executive director of the company, had passed away on October 7, 2025, due to an unsuccessful rescue attempt.
Jinsheng Guan was born in 1947 in a remote mountain village in Qingjiang County, Jiangxi Province. In 1982, he was admitted to the French Department of Shanghai Foreign Language Institute. Later, he switched careers from a translation position in the public security agency to work at Shanghai International Trust Investment Company, where he served as an assistant manager and then vice manager. He was selected to pursue further studies at the Free University of Brussels in Belgium, earning dual master’s degrees in law and business administration.
In 1988, he founded China’s first securities company, Wanguo Securities. Starting with a capital of only tens of millions of yuan, this securities company quickly grew into a comprehensive company with assets in the billions. At its peak, Wanguo Securities held all domestic B-shares, traded over 70% of A-shares, and accounted for 60% of China’s underwriting business.
During this time, Jinsheng Guan was at the height of his career. However, the “327 National Debt Incident” in 1995 caused his rapid downfall.
The “327” was a national debt futures contract with a total issuance of 24 billion RMB, featuring an 8% face interest rate plus a value-added subsidy. According to reports, Jinsheng Guan predicted that the value-added subsidy rate would remain at 8% and anticipated the national debt to be redeemed at 132 yuan. Based on this prediction, Wanguo Securities, in conjunction with Liaoning Guofa Group, heavily shorted the “327 National Debt.” Their counterpart was the China Economic Development Trust Investment Corporation affiliated with the Ministry of Finance, which chose to go long.
In early 1995, Jinsheng Guan, representing the short side, believed that with inflation persisting at double digits for seven consecutive years, the treasury was stretched thin and would not allocate substantial funds to plug the bottomless pit of the 327 National Debt. However, on the morning of February 23, 1995, the Ministry of Finance announced redemption at 148.50 yuan per unit for the “327 National Debt,” with the Ministry bearing a loss of 1.6 billion yuan to subsidize it.
As a result, Wanguo Securities suffered losses of 6 billion RMB, making Jinsheng Guan the biggest loser in the event, while the China Economic Development Trust profited 7.2 billion RMB from the 327 incident.
The day after the incident, Wanguo Securities faced a run on its reserves. In April 1995, Jinsheng Guan resigned. On May 19, he was arrested in Hainan on charges of corruption and embezzlement. In the same month, the national debt futures market was closed. On February 3, 1997, Jinsheng Guan was sentenced to 17 years in prison for bribery and embezzlement.
While the China Economic Development Trust managed to escape unscathed in the incident, they later became embroiled in significant cases involving Sichuan Changhong, Oriental Electronics, and Silver Grain Summer, ultimately having their business license revoked in June 2002. Despite profiting from insider trading in the stock market, the China Economic Development Trust ended up with significant losses during the settlement. The whereabouts of the profits they made remain unaccounted for to this day.
Afterwards, Jinsheng Guan was granted medical parole in 2003 and faded from public view. In 2016, at the age of 69, Jinsheng Guan embarked on a new entrepreneurial venture by establishing Shanghai Jiusing Shanhe Equity Investment Fund Management Co., Ltd., leading the establishment of parallel funds focusing on new technology and new materials in collaboration with international partners.