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a police report officially brought haiyin wealth’s overdue debt dilemma to the fore.

on september 11, the fengxian branch of the shanghai public security bureau announced that it had filed a case for investigation into haiyin wealth management co., ltd. (hereinafter referred to as "haiyin wealth") for suspected illegal fund-raising crimes, and had taken criminal coercive measures against several suspects including han moumou, han mou, and wang mou.

haiyin wealth is the core company of the "haiyin group" and is controlled by han hongwei and his son han xiao. the reporter learned from multiple independent sources that han moumou and han mou are han hongwei and han xiao. on the evening of the 11th, yanshi co., ltd. (600696.sh) also issued an announcement stating that haiyin wealth was suspected of illegal fundraising and was under investigation. criminal compulsory measures have been taken against han xiao, the actual controller of the company.

regarding this situation and subsequent handling measures, the reporter from the first financial daily sought confirmation from haiyin wealth, but no response was received as of press time.

according to data from a third-party platform, since 2023, there have been 24 issuers involved in haiyin wealth's overdue products, with a total overdue amount of over 71 billion yuan. according to the analysis, some of haiyin wealth's overdue products were registered and filed through "pseudo-finance exchanges" that were identified as illegal finance by regulatory authorities. the issuers were suspected to be shell companies and were in an abnormal operating state.

some industry insiders also analyzed that around 2021, haiyin holdings had "borrowed" local gold exchanges to sell its real estate products of debt nature. as early as december 2023, the reporter of china business news learned from some investors that most of the products involved in the delay were non-standard fixed-income products, and the underlying assets were invested in the accounts receivable projects of multiple supply chain companies. (for related reports, please see "haiyin wealth "project delay", the underlying assets of non-standard fixed-income products are in doubt")

on the 11th, the police report showed that the public security organs are currently collecting criminal evidence in an all-round way, and are making every effort to promote case investigation, recover stolen money and prevent losses, so as to protect the rights and interests of investors to the greatest extent possible.

the overdue amount may exceed 71 billion yuan, with 24 issuers

before being notified by the police of suspected illegal fundraising, haiyin wealth had been showing signs of crisis. in may 2020, haiyin wealth was visited by investors for rights protection due to rumors of overdue real estate equity projects; in may 2023, media reported that many investors gathered at the door of the company's headquarters because the private equity investment funds they purchased did not meet expectations. in december 2023, haiyin wealth officials stated that the project had been delayed recently due to the impact of the economic downturn. at that time, han hongwei, chairman of haiyin holdings, said that there was a preliminary solution.

it has been nine months since the redemption crisis broke out. the first financial reporter learned from many investors that haiyin wealth’s wealth management products have not yet been redeemed normally, and the company has not come up with an effective solution.

an investor told the reporter that haiyin wealth had offered real estate and liquor projects as redemption assets, but the redemption valuation was inflated and many investors did not accept it. he gave the reporter an example, a property with a local market price of 2 million yuan, haiyin wealth may value it at 3.5 million yuan. if an investor has 3 million yuan of products that have not been redeemed and agrees to use this property as a redemption asset, he will need to "match" and invest another 500,000 yuan in cash to make up the difference. haiyin wealth transferred the inflated assets to investors and also "harvested" a sum of cash.

how big is the scale of overdue haiyin wealth products and how many investors are involved? an investor told the first financial reporter that this year, the minimum investment amount of haiyin wealth products is mostly 300,000 yuan or 1 million yuan, involving more than 40,000 investors. haiyin investment's financial report also shows that as of the end of june 2023, it has 46,600 active customers.

according to the data from the enterprise early warning system, as of september 11, there were 24 issuers involved in haiyin wealth's overdue products since 2023, with a total overdue amount of over 71 billion yuan. the issuers are distributed in five provinces, including shanghai, guangdong, shandong, zhejiang and hainan, with a large concentration in fengxian district, shanghai.

suspected of illegal fund-raising, underlying assets in doubt

haiyin wealth’s product information shows that the product term ranges from 6 to 48 months, with an annualized yield of 7% to 10%, and interest is paid every six months. the product names are almost all “debt projects”, and the underlying targets are mostly invested in accounts receivable.

but in fact, some of haiyin wealth’s overdue products were registered and filed through a "pseudo financial exchange" that was identified as illegal finance by the regulatory authorities. the issuer was suspected to be a shell company and was in an abnormal operating state.

according to the enterprise early warning data, since 2023, there have been a total of 24 issuers involved in haiyin wealth's overdue products. most of the issuers' registered capital is more than 100 million yuan, but the paid-in capital is basically 0.

taking the "yuchang no. 23 accounts receivable and debt project" with a relatively recent issuance time as an example, according to the contract provided by the investor to the reporter of china business network, the listing party is yijia supply chain management co., ltd., which registered and transferred the "yuchang no. 23 accounts receivable and debt project" it held through nuoyinggu financial asset trading center co., ltd. (hereinafter referred to as "nuooyinggu"), with a total amount of 55.9 million yuan.

judging from the current situation, nuoyi valley has changed its name and been included in the list of abnormal operations, and should be regarded as a "pseudo gold exchange."

the so-called "pseudo financial exchanges" refer to industrial and commercial enterprises that provide registration and filing services for non-standard debt financing activities without the permission of the competent state authorities and in violation of national financial management regulations.

as early as the end of 2021, relevant regulatory authorities had already launched a cleanup and rectification of "pseudo gold exchanges". many places have also successively issued risk warnings on preventing illegal business activities of "pseudo gold exchanges". for example, the shanghai financial stability coordination joint conference office issued a risk warning in november 2023, stating that, except for trading venues approved by the national financial supervision and management departments, other local trading venues and various enterprises suspected of engaging in "pseudo gold exchange" activities are not allowed to directly or indirectly provide services and conveniences for various issuances and sales of non-standard debt financing products in the name of registration, filing, listing, intermediary, financial advisory, information release, etc.

nuoyigu was included in the rectification scope. in april 2023, nuoyigu changed its name to "yunnan xien enterprise management co., ltd."; in december 2023, the company cancelled its company registration; and in july 2024, it was included in the list of abnormal operations.

the listed company yijia supply chain management co., ltd. was also included in the abnormal operation list in january 2024 because "the company could not be contacted through the registered residence."

previously, some media reported that in the investment process, the underlying assets of the funds raised by haiyin wealth products were seriously inconsistent with what was claimed in the fundraising prospectus, and the whereabouts of most of the funds were unknown.

why did it suddenly collapse 18 years after its establishment?

han hongwei, the actual controller of haiyin wealth, is a businessman from henan. he founded haiyin wealth in shanghai in 2006 and built the haiyin capital "empire".

many people in the industry believe that haiyin wealth is controlled by han hongwei, han xiao, wang dian and others. according to qichacha data, haiyin wealth is 85% owned by haiyin holdings (hyw.nasdaq) and 15% by wang dian; haiyin holdings is 71.16% owned by han hongwei and 13.39% by wang dian (as of june 30, 2023). another asset-side platform of the "haiyin system" is wuniu equity investment fund management co., ltd. (now renamed "shanghai zhiyunming industrial co., ltd.").

han hongwei and han xiao, the father and son who are the "operators" behind haiyin wealth, have built a huge haiyin "empire". in addition to haiyin wealth, the "haiyin group" also owns two listed companies, haiyin holdings and yanshi shares, with business areas covering wealth management, microfinance companies, guarantee companies, mutual finance platforms, liquor, etc.

in 2006, haiyin wealth was established in the core area of ​​lujiazui, shanghai. according to the financial report of haiyin holdings, as of june 30, 2023, haiyin wealth has 185 wealth management centers and 1,749 financial planners in 91 cities across the country. in the prospectus for haiyin holdings' listing in the united states in 2021, haiyin wealth was described as "china's third largest and fastest-growing third-party wealth management service organization" and "the largest real estate fixed-income product provider in china."

why did haiyin wealth suddenly collapse after 18 years of establishment?

a person from a wealth management institution analyzed to the reporter of china business network that the earliest problems with haiyin wealth products may be traced back to the collapse of real estate companies around 2021. before 2021, the underlying assets of haiyin wealth's wealth management products were basically invested in real estate projects. but strangely, as the risks of some real estate companies in which haiyin wealth held heavy positions were exposed, haiyin wealth was not greatly affected, and there were no serious problems with repayment. at that time, some industry insiders speculated that the company might have made a "capital pool" move.

according to the prospectus of haiyin holdings, as of the end of june 2020, the company's private equity products mainly include real estate products and private equity funds. in 2018, 2019, and the first half of 2020, 74.4%, 78.8%, and 88.8% of its wealth management service income came from real estate products (including real estate fixed income, real estate equity investment, etc.). according to haiyin holdings, these products are invested in real estate projects of well-known large developers with good credit ratings such as evergrande and sunac, with a term of 6 to 36 months.

however, after evergrande defaulted in september 2021 and sunac defaulted in march 2022, haiyin wealth did not have a large-scale overdue payment incident. according to a person with five years of investment experience in haiyin wealth, these 6-36 month real estate private equity products are basically redeemed normally, and some can even be redeemed in advance.

according to the materials provided by investors, starting from 2023, the types of new products issued by haiyin wealth will shift from real estate products to supply chain financial products. the underlying assets of "supply chain financial products" are usually "accounts receivable" under the underlying trade items.

but in may this year, some media went to tianjin, ningbo and zhoushan to search for these underlying companies by following the registered addresses and correspondence addresses, but all of them said "no such company exists". the quality and even authenticity of the underlying assets of the wealth management products issued by haiyin wealth are worrying.

the above-mentioned industry insider believes that it is highly likely that from this stage onwards, haiyin wealth will choose to rely on the "fund pool" model of "borrowing new to repay old" on a large scale. however, as interest, sales commissions, historical underlying asset losses, etc. continue to "drain" the fund pool, the crisis of haiyin wealth will eventually spread to the surface.