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produced by phoenix finance's "investment observation"

today, phoenix finance's "investment watch" received a ppt titled "who drove e fund hong kong into the fire pit?" the ppt stated that e fund hong kong used an overseas platform and had many violations of the fund industry's professional standards and scandals.

the ppt pointed out that shanghai bank has always entrusted e fund hong kong to manage its own funds of more than 10 billion yuan overseas, and managed them separately in two e fund hong kong special accounts (e fund hong kong and shanghai bank are called special accounts no. 2 and no. 8, and the special account custodian is icbc asia). shanghai bank first injected the above-mentioned more than 10 billion yuan of overseas funds into the two special accounts, and then e fund hong kong invested in overseas us dollar bonds and two hong kong public funds managed by e fund hong kong as the special account manager and in the name of the special account, including e fund (hong kong) select bond fund (shanghai bank invested approximately 7 billion yuan) and e fund (hong kong) asian high yield bond fund (shanghai bank invested approximately 3 billion yuan).

due to the frequent explosion of overseas dollar bonds in 2022 and 2021, these two e fund hong kong public funds also frequently stepped on thunder, and the fund performance was hit hard, especially the e fund (hong kong) asian high yield bond fund, which fell by 20% in 2022. in order to hide the significant losses of shanghai bank's investment in these two public funds, shanghai bank and e fund hong kong jointly used seriously misleading special account monthly statements to make major illegal operations. e fund hong kong used the name of amortized cost calculation and the method of adjusting the net value of fund shares by falsifying accounts to make special account valuation reports, hiding the significant losses of shanghai bank's investment in the two public funds in the past three years (2021-2023). at the same time, shanghai bank also recorded the adjusted false account special account statements. therefore, shanghai bank actually inflated its net profit by more than rmb 1 billion from 2021 to 2023.

the external auditors of bank of shanghai did not discover the hidden situation because they believed in the valuation report of e fund hong kong. pricewaterhousecoopers zhongtian accounting firm (special general partnership), the auditor of bank of shanghai, asked e fund hong kong for the audit confirmation letter in march 2023. shi feng, the chief operating officer of e fund hong kong, provided a misleading audit confirmation letter to pricewaterhousecoopers, making pricewaterhousecoopers believe the relevant data. even though pricewaterhousecoopers discovered the problem of shanghai bank's accounting method in may 2024, e fund hong kong continued to mislead pricewaterhousecoopers for various reasons, causing shanghai bank's recent 2024 semi-annual report to still have the inflated profits.

the ppt pointed out that on november 29 and november 30, 2022, ma jun, vice president of e fund management and chairman of e fund hong kong, agreed at internal and bilateral meetings with shanghai bank to assist shanghai bank in concealing significant losses through adjusted false account valuations, and at the same time to create misleading data of positive returns on special account performance through the return of management fees. the valuation report was completely prepared by means of false accounting. participants included qi guangdong, president of e fund hong kong and chief investment officer of e fund hong kong, shi feng, chief operating officer of e fund hong kong, and wang jiaxiang and peng cong, who are responsible for institutional sales of e fund hong kong.

at the same time, the ppt also pointed out that similar operations not only served shanghai bank. saic group's overseas subsidiary saic hong kong international finance also invested in e fund (hong kong) asia high yield bond fund through a special account with e fund hong kong, and also suffered major losses in 2022. it also concealed investment losses through misleading data valuation financial statements, and also deceived the interests of the country and shareholders.

the ppt also pointed out that e fund hong kong provides high-end banquets and luxurious gifts to its clients, including iphones and hermès gifts.

in addition, the ppt also mentioned that e fund hong kong ignored hong kong laws and regulations, arbitrarily modified the valuation of hong kong public funds, and seriously damaged the interests of fund holders; it operated its own funds in violation of regulations, transferred interests, and lacked professional ethics; e fund hong kong illegally short-sold hong kong-listed stocks, violating market integrity and stability.

in response, e fund said that there have been some false and malicious accusations about the company in the market. the company is highly concerned about this, and immediately initiated the internal audit process and hired an external hong kong law firm to conduct an independent investigation on related matters. the company has always adhered to the principle of compliance management and integrity. strictly abide by laws, regulations and industry regulatory requirements to ensure the compliance of various business operations. at present, the company's various businesses are operating normally, and we will continue to provide customers with high-quality financial services. the company respects and welcomes supervision from all sectors of society and will continue to optimize internal control management. however, for any malicious defamation or deliberate dissemination of false information, the company reserves the right to pursue legal liability in accordance with the law.

in addition, shanghai bank told phoenix finance's "investment observation" that it had just seen the information circulating online and saw that e fund had already issued a statement. our company may also need to conduct internal verification before seeing (whether to issue a statement).