Having been terminated by multiple public funds, Zhongmin Wealth did not sell a single new fund last year
2024-08-19
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Recently, the news that China Minsheng Wealth terminated its cooperation with several public fund institutions has sparked heated discussions in the industry.
On August 16, China Minsheng Wealth Fund Sales (Shanghai) Co., Ltd. (hereinafter referred to as "China Minsheng Wealth") was terminated by Huatai-PineBridge Fund from handling its fund subscription, application, redemption, regular fixed-amount investment and conversion and other related sales businesses.
In addition to Huatai-PineBridge Fund, Zhongmin Wealth has recently been terminated by many fund companies including Galaxy Fund, Baoying Fund, Ping An Fund, Orient Fund, and Huitianfu.
A reporter from the First Financial Daily sorted out the materials and found that the number of newly issued funds that signed agency sales agreements with China Minsheng Wealth has decreased significantly in recent years.
According to a public offering fund channel that has stopped cooperating with Zhongmin Wealth,Weak risk control and sales falling short of expectations are reasons why public fund institutions terminate their partnerships with sales channels.
As to why the cooperation with several public funds was terminated, the reporter tried to call the official website of China Minsheng Wealth several times, but the call was not connected.
Several public funds terminated their cooperation with China Minsheng Wealth Management
On August 16, Huatai-PineBridge Fund issued an announcement stating that in order to protect the interests of investors, after consultation with Zhongmin Wealth, Huatai-PineBridge Fund will terminate Zhongmin Wealth Management Company's fund subscription, application, regular fixed-amount investment, fund conversion and other related sales businesses from August 28.
Galaxy Fund also announced its "breakup" with China Minsheng Wealth on the same day. In the announcement, Galaxy Fund said that after consultation with China Minsheng Wealth, it was decided that China Minsheng Wealth would stop handling the sales business of its funds from that day on.
According to incomplete statistics, many fund companies including Baoying Fund, Ping An Fund, Orient Fund, and Huatai-PineBridge have recently issued announcements, announcing the termination of cooperation with China Minsheng Wealth.
On August 12, Dongfang Fund even "broke up" with three fund sales agencies in a row. The relevant announcement stated that in order to protect the interests of investors, after consultation with Xi Que Wealth Fund Sales Co., Ltd. (hereinafter referred to as "Xi Que Wealth"), China International Futures Co., Ltd. (hereinafter referred to as "Central Futures"), and Zhongmin Wealth, Dongfang Fund terminated the above three agencies from handling the company's fund sales related business from that day.
As of August 11, Xi Que Wealth, CITIC International, and Zhongmin Wealth no longer have any existing customers holding Oriental Fund Securities Investment Fund.
The reporter noticed that in the past few years, many fund companies such as Haitong, Qianhai Kaiyuan, Southern Fund, and Huaan Fund have successively terminated or suspended their agency cooperation with China Minsheng Wealth.
According to public information, Zhongmin Wealth was established in November 2014 and is headquartered in Shanghai. It is a wealth management and community financial service platform under China Minsheng Investment Co., Ltd. (hereinafter referred to as "Minsheng Investment"), with a registered capital of 100 million yuan. In 2016, the China Securities Regulatory Commission approved Zhongmin Wealth's securities investment fund sales business qualifications.
Minsheng Investment is an investment company organized by the All-China Federation of Industry and Commerce and initiated by 59 well-known private enterprises. It was registered in Shanghai on May 9, 2014 with a registered capital of 50 billion yuan.
According to Qichacha, Minsheng Investment currently has 253 risks, including 196 legal cases, 8 regulatory notices, and 49 business warnings, of which 77.47% are legal cases. The company currently has 46 high-risk information such as dishonest debtors. As a debtor, Minsheng Investment is involved in a case involving 2.506 billion yuan.
It is not clear whether the termination of cooperation between several public funds and China Minsheng Wealth is related to Minsheng Investment.
The company was once found by regulators to have risks in corporate governance and internal control
"We frequently check the situation of our cooperative sales agencies. If there are sales channels with low sales volume, increased operating costs, or weak risk control, we will choose to stop cooperating with them." One of the public fund institutions that terminated its cooperation with China Minsheng Wealth told reporters.
It is worth mentioning that in a self-regulatory measure decision issued by the Fund Industry Association in January 2020,It was determined that China Minsheng Wealth had risks in its corporate governance structure, internal control system, office space, personnel qualifications, branch establishment, and senior executive exit audit, and did not meet the requirements for conducting private equity fund Muji business.
According to relevant regulations, the Fund Industry Association decided to suspend China Minsheng Wealth’s private equity fund raising business until the rectification was completed and the on-site acceptance was qualified.
Although it has terminated cooperation with many public funds, according to Wind data, as of August 18, China Minsheng Wealth still sold 947 funds and still cooperated with 24 public fund institutions.
onlyIn recent years, the number of newly issued funds that have signed agency sales agreements with Zhongmin Wealth has decreased significantly. Most of the current existing customers have reached a cooperative relationship with it in 2022 or before.
In 2024, Zhongmin Wealth and Anxin Fund reached a sales agency agreement for 9 newly issued funds (A and C shares are calculated separately). Among them, Anxin’s 30-day rolling holding bond’s “open subscription, redemption, conversion and regular fixed investment business” announcement released on June 24 clearly listed Zhongmin Wealth as a “third-party sales company sales channel”.
In addition to bond funds, Anxin Balanced Retirement Target Three-Year Holding also lists China Minsheng Wealth as a third-party sales channel.
Wind data shows thatIn 2023, China Minsheng Wealth did not reach a distribution cooperation relationship with any newly issued fund; In 2022, China Minsheng Wealth reached a distribution agreement with several newly issued funds under Harvest Fund, Hua Xia Fund, and Shenwan Hongyuan Fund.
"In recent years, it is not uncommon for fund companies to terminate cooperation with some small and medium-sized sales institutions." A public fund channel manager told reporters.
On July 23, Xinjiang Qianhai United Fund issued an announcement stating that it had reached an agreement with Beijing Zhongzhi Fund Sales Co., Ltd. (hereinafter referred to as "Zhongzhi Fund") and Huayuan Securities to terminate Zhongzhi Fund's related sales business of the company's funds from now on. The subsequent services for investors who have purchased and held through Zhongzhi Fund will be provided by Huayuan Securities.
Green Fund also announced on July 20 that it had terminated its agency sales cooperation with Zhongzhi Fund on the same day, and Huayuan Securities will continue to provide services to investors who purchased funds through Zhongzhi Fund.
In addition to Zhongzhi Fund, sales agencies such as Xi Que Wealth, Beijing Huiteng Huifu, and Tianjin Gome Fund have also had their cooperation terminated by many public funds.
According to incomplete statistics, since July, more than ten public funds including Tongtai Fund, Great Wall Fund, Jinxin Fund, Debang Fund and Dongwu Fund have chosen to terminate their cooperation with Xi Que Wealth; in addition, ICBC Credit Suisse Fund terminated its agency sales cooperation with Beijing Huiteng Huifu, and Puyin Ansheng terminated its agency sales cooperation with Beijing Zengcai Fund.
(This article comes from China Business Network)
