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september 22 (reporter feng qijuan)this is the fourth time that jujing wealth and its actual controller ni xingang have been fined at the same time, three of which were from the zhejiang regulatory bureau and one from the china securities association.

the zhejiang regulatory bureau recently disclosed that as the actual manager of five private equity funds, namely huzhou jingen, huzhou jingcong, huzhou jingde, huzhou junyu and huzhou jingyan, jujing wealth had three major violations: 1) failure to complete the registration procedures for the aforementioned five private equity funds; 2) misappropriation of private equity fund assets; 3) failure to disclose information as agreed in the contract, including failure to provide the annual financial reports of the five private equity funds as agreed and failure to inform investors of the progress of investment projects in a timely manner.

as the legal representative and general manager of jujing wealth, ni xingang was responsible for the overall operation of jujing wealth and was the person in charge who was directly responsible for the above-mentioned behavior of jujing wealth. therefore, the bureau finally decided to order jujing wealth to make corrections, give it a warning, and impose a fine of 360,000 yuan; and to give ni xingang a warning and impose a fine of 210,000 yuan.

jujing wealth and ni xingang requested a lighter or reduced punishment, and proposed that the acts of failing to complete fund registration procedures and failing to disclose annual financial reports as agreed in the partnership agreement occurred before the promulgation of the "regulations on the supervision and administration of private investment funds" (hereinafter referred to as the "supervision and administration regulations"), and that the "interim measures for the supervision and administration of private investment funds" (hereinafter referred to as the "interim measures") imposed lighter penalties on related violations. the amount of the fine should be determined in accordance with the principle of "following the old and being lenient" stipulated in the "administrative penalty law of the people's republic of china" and the "interim measures" should be applied.

however, the bureau believes that the two types of illegal acts of jujing wealth are continuing and have continued after the implementation of the supervision and administration regulations. therefore, this case is subject to punishment in accordance with the supervision and administration regulations, and the statements and defense opinions raised are not accepted.

after investigation, it was found that the "jujing group" consisting of jujing wealth, jujing asset and jujing daosheng has been punished many times in recent years. just last year, the "jujing group" was punished by the china securities association and the zhejiang regulatory bureau. the china securities association decided to suspend the acceptance of the registration of these three private equity fund products for half a year or a year, and ni xingang was also "blacklisted" for a year. according to the fine issued by the zhejiang regulatory bureau last year, jujing wealth had as many as 8 types of violations.

three major violations, each with its own punishment

in response to the three major violations of jujing wealth, the zhejiang regulatory bureau specifically indicated the penalty results in this fine.

specifically, for failing to complete the registration procedures for private equity funds, the zhejiang regulatory bureau decided to fine jujing wealth 200,000 yuan; and to give ni xingang a warning and a fine of 100,000 yuan.

huzhou jingen, huzhou jingyan, huzhou jingcong, huzhou jingde and huzhou junyu are five limited partnerships, with huzhou wenzhuo investment management co., ltd. (hereinafter referred to as huzhou wenzhuo) as the general partner and executive partner. huzhou wenzhuo zicheng is immediately actually controlled by jujing wealth, mainly used to provide a channel for jujing wealth to conduct business. as a result, the above five private equity funds are actually managed by jujing wealth. as of august 7 this year, jujing wealth has not yet completed the registration procedures for the above private equity funds in accordance with regulations.

regarding the misappropriation of private equity fund assets, the bureau decided: to order jujing wealth to correct its mistakes, give it a warning, and impose a fine of 30,000 yuan; to give ni xingang a warning and impose a fine of 30,000 yuan.

the partnership agreement stipulates that huzhou jingen will invest in the fund shares of jujing jingxiang no. 3, and when the funds are idle, it can invest in principal-guaranteed financial products and quasi-principal-guaranteed financial products. on august 19, 2021, jujing wealth misappropriated 3.8 million yuan from huzhou jingen to provide loans to a third party. in september 2021, the third party repaid the loan.

regarding the failure to disclose information in accordance with the contract, the bureau decided: to order jujing wealth to make corrections, give it a warning, and fine it 130,000 yuan; and to give ni xingang a warning and a fine of 80,000 yuan.

since the establishment of the five partnerships, jujing wealth has not provided annual financial reports to investors in accordance with the partnership agreement. at the same time, jujing wealth failed to disclose to investors in a timely manner that the five partnerships used the raised funds for loans, current accounts, and investments in other projects outside the investment scope agreed in the partnership agreement, violating relevant agreements.

jujing wealth is a private equity investment fund established in april 2015 and completed registration in august of the same year. its registered and paid-in capital are both 2.17 million yuan, and its management scale ranges from 500 million to 1 billion yuan.

the china securities association has issued a red reminder that the private equity fund has overdue funds that have not been liquidated, funds that have been in liquidation for a long time, and senior executives who do not have securities investment fund qualifications. the association also specifically reminded that according to the "regulations on the prevention and disposal of illegal fund raising" and "private investment fund registration and filing measures", the name and business scope of private equity fund managers shall not contain words or content such as "wealth management", and at the same time, it shall reflect the characteristics of entrusted management of private equity funds. attention should be paid to the rectification of relevant institutions.

the related party displayed, jujing asset, belongs to other private investment funds, with a management scale ranging from 0 to 500 million yuan. it is also reminded in red that there are overdue liquidated funds and funds that have been in liquidation for a long time. jujing daosheng is a private equity and venture capital fund, with a management scale ranging from 1 billion to 2 billion yuan. the content of the red reminder is consistent with jujing wealth.

according to his resume, ni xingang has served as an executive or person in charge in china ping an insurance zhejiang branch, united life insurance anhui branch, ping an trust hangzhou branch, and lujiazui wealth management company hangzhou branch.

the "giant whale group" and ni xingang have been punished many times

the zhejiang regulatory bureau's december 2023 penalty ticket pointed out that jujing wealth had 8 types of violations:

1. promoting private equity funds on wechat public accounts without going through the specific object identification procedure;

2. failure to maintain separate accounts for different private equity funds;

3. the limited partnership fails to complete the filing procedures with the asset management association of china after raising funds from investors;

4. failure to apply for change of registration with the industrial and commercial registration authority after the change of partners;

5. failure to invest within the scope agreed upon in the partnership agreement and misappropriation of fund assets;

6. failure to disclose information truthfully as agreed in the contract;

7. failure to distribute dividends or pay returns to investors in accordance with the actual operating performance or returns of the investment targets;

8. engage in business unrelated to private equity fund management.

at the same time, jujing daosheng was accused of two types of violations: one was raising funds from individuals other than qualified investors; the other was failing to keep separate accounts for different private equity funds; and jujing asset failed to keep separate accounts for different private equity funds.

as the actual controller of the three private equity firms, ni xingang was primarily responsible for the above-mentioned problems. therefore, the bureau decided to take supervisory and management measures of issuing warning letters to the three private equity firms and ni xingang, and record them in the integrity file of the securities and futures market. they were also required to submit written rectification reports within 7 days from the date of receipt of this decision.

due to two types of violations, namely, failure to disclose the fund's investment portfolio to investors in a timely manner, other important information that may affect the legitimate rights and interests of investors, and inaccurate disclosure of information, jujing daosheng and ni xingang were taken supervisory and management measures of issuing a warning letter by the zhejiang regulatory bureau in september 2022, and the information was recorded in the securities and futures market integrity file, and they were also required to submit written reports.

in march 2022, three private equity firms of the "jujing series" were fined at the same time. the fines pointed out that jujing wealth and jujing daosheng both accepted commissions from other private equity fund managers to raise private equity funds without obtaining the qualification for fund sales business; and jujing asset had three types of violations: first, it failed to be prudent and diligent, treated different investors of the same private equity fund unfairly, and harmed the legitimate rights and interests of investors; second, it accepted commissions from other private equity fund managers to raise private equity funds without obtaining the qualification for fund sales business; third, the company's employees worked part-time at jujing wealth and jujing daosheng.

as an employee of jujing asset, zhang xihu worked part-time in two other companies and was engaged in the fundraising and promotion of private equity fund products without obtaining the qualification of fund practitioners. similarly, ni xingang still bears the main responsibility for the above problems.

for the above three private equity firms and two relevant personnel, the bureau has taken supervisory and management measures of issuing warning letters, and recorded them in the integrity files of the securities and futures markets. they have also been required to submit written rectification reports.

in addition to being punished multiple times by the zhejiang regulatory bureau, three private equity firms of the “jujing group” also received a disciplinary decision from the china securities association in april last year. in addition to public condemnation, jujing daosheng and jujing wealth were suspended from accepting private equity fund product filings for six months, and jujing asset was suspended for a year; ni xingang was added to the blacklist for one year.