Winning the new financial era

Chapter 661
US stock market.

Muddy Waters, known for short-selling stocks, released a short-selling report. The 90-page report stated:
The three affiliated companies of Yimin Wangjin, Yimin Wealth, and Yimin Loan are all under the control of the same actual controller Zhang Yida, and there are behaviors such as benefit transfer.

The case was also cited, where Yimin Wealth led a consortium formed by three Yimin companies, and spent 140 billion yuan to acquire Zhongjiang Trust, which was in trouble.

The internal management of this trust company was chaotic, and it defaulted on 35 trust projects, with a total default of nearly 80 billion yuan. The company was not worth the price of 140 billion yuan.

Trading must be tricky!

In addition, a large number of Wall Street investment banks that once invested in China Trust have withdrawn on a large scale in recent years.

This is a declining industry!

Muddy Waters also entrusted Chinese cooperative agencies to investigate the place where the breached project occurred.

It is found that many projects are government credit projects and local debts guaranteed by local governments in China, but they have defaulted!
As public companies listed in the United States, the three Yimin companies must be responsible to their shareholders.

Yimin Wangjin was also accused.

Muddy Water said that Yimin Wangjin was originally a financial technology company, but it spent a lot of money to acquire a local traditional bank in Indonesia.

In terms of operation, it seems short-sighted and stupid, not worthy of the current market value, and should be valued according to bank stocks.

China's P2P industry is gradually being liquidated, and Yimin Wangjin is burdened with more than 600 billion yuan to be collected. The transformation is difficult, and it is very likely that it will not be able to survive.

Yimindai is also facing supervision, its transformation is weak, and its performance has changed drastically.

At the same time, Yimin Wangjin and Yimindai also face the same problem, with extremely high bad debts and a large number of borrowers escaping their debts.

The document also quoted many screenshots of documents obtained from lurking among the borrowers. A large number of borrowers said that they would not pay back the money if they carried it to the end.

Finally, Muddy Water also pointed out that the risk control engine of Yimin Wangjin and Yimindai is a joke, full of loopholes.

……

As soon as this report came out, the three listed companies of Yimin Group fell in response.

The stock price of Yimin Wealth fell more than 15.4%, and its market value fell to US$16.92 billion, with more than US$3.08 million evaporated...

The stock price of Yimin Wangjin fell next, reaching 13.28%, and its market value fell to 26.01 billion US dollars, evaporating nearly 4 million US dollars...

The stock price of Yimindai fell by 12.5%, the market value fell to 10.5 billion US dollars, and more than 1.5 million US dollars evaporated...

……

The three Yimin companies evaporated a total of 8.6 million US dollars in one day, sweeping the domestic financial circles.

Including the bosses of some listed companies engaged in mutual funds, such as Lu Min, Xiao Wenjie, Tang Lin, etc., are all paying attention to the further development of the situation, and are very worried that Muddy Water will set their next target on them.

Affected by the three companies that benefited the people, their respective companies also had their own declines, but not as serious as the benefits of the people.

Muddy Water has a notorious reputation, and everyone avoids it, for fear of being bitten by this vicious dog.

……

"Muddy Water was established in July 2010. The founder, Carlson Block, graduated from the University of Southern California, majoring in finance and minoring in Chinese, and later studied for a law degree at Chicago-Kent School of Law.

He came to Shanghai, China in 2005 and worked for an American law firm; in 2008, he founded a warehousing and logistics company.

In 2010, when Carlson visited Orient Paper, a Chinese company listed in the United States, he saw that the company’s abandoned gates, old warehouse dormitories, and idle workers were very different from the description in the financial report, and the company’s inventory was basically a pile of waste paper.

So on June 2010, 6, he gathered a group of people who were familiar with China's business rules and established the "Muddy Water Company" in Hong Kong. The first target was the Oriental Paper.

Although Orient Paper jointly launched an investigation and self-defense with law firms and accounting firms, its stock price still plummeted by more than 80%, and its stock price has been depressed for a long time.

The name "muddy water" is taken from the Chinese proverb "fishing in muddy water". It can be seen that Carlson is a school of Chinese knowledge. He has minored in Chinese in college and has worked in China.

The word muddy water is also a pun: it refers to companies that specialize in investigating companies that "fish in muddy water" in the capital market, and it also means "it is easier to find fish in muddy water", muddy the water first, and then sell them by borrowing securities way to profit. "

When such a big incident happened, the heads of the three companies of Yimin Department gathered together urgently and held a meeting with Zhang Yida to discuss the countermeasures.

After Ding Siyao finished introducing the origin of the muddy water, Zhang Yida didn't express his opinion directly, but silently thought about how to turn this bad thing into a good thing.

"As of July this year, in the nine years, Muddy Waters has attacked a total of 7 Chinese concept stocks and Hong Kong stocks. If you count us, there are 9 companies.

There are roughly three results.One is to be delisted and delisted, the other is to pull down the stock price, and the third is to return to an upward trend after a short-term fluctuation. "

Ding Siyao said with a serious expression, "There are relatively few people belonging to the third category. At present, only Man Wah Holdings, Spreadtrum Communications, New Oriental and TAL have successfully countered the muddy water.

Anta and us encountered short selling in the same period, and are still fighting long and short, and the result is unknown. "

Zhang Yida chuckled, "It's not that scary. If we were not included, they would have destroyed 15 of the 10 companies. The success rate is only 66.7%, and it's not perfect.

The body is not afraid of the shadow slanting, and the muddy water wants to play, then we will play with him. "

Zhang Yida's attitude, calm and calm expression and understatement of words gave the panicked executives a reassurance.

That's right, isn't it just shorting, just fight back!

With this in mind, Fan Hongyang regained his composure, looked at Zhang Yida and said, "Mr. Zhang, let's clarify now, let the audit committee take the lead, and cooperate with law firms and accounting firms to conduct self-examination."

Listed companies are public companies and have audit committees, which generally consist of three directors, all of whom are independent and non-executive directors.

The main responsibilities include: reviewing and supervising whether the external audit institution is independent and objective and whether the audit procedures are effective;
Review the company's financial information and its disclosures;
Review the company's internal control system and audit major related transactions...

"Self-examination must be carried out, but there is no need to be too anxious."

Zhang Yida snorted coldly, "Take Yimin Wangjin as an example, the price-to-book ratio is lower than 1, and the market value is not even comparable to the net assets.

I want to see where I can fall?At worst, we will repurchase it. "

"what?"

Not only Fan Hongyang, but also Ding Siyao and Chen Shaojie were amazed.

"What's wrong?" Zhang Yida didn't understand why the three of them reacted like this.

"That... Mr. Zhang, I have pledged a lot of stocks."

Chen Shaojie said with embarrassment, "If it falls again, the position will be liquidated!"

After a little thought, Zhang Yida figured out the reason.

Chen Shaojie joined the Yimin Department late, and only had shares in Yimindai, holding less than 2% of the shares. He followed Zhang Yida and cashed out more than 1000 million yuan in stocks before the stock market plummeted in mutual funds.

With this little money, you can buy a bigger house in the capital and it will be gone!
To maintain a decent life, or to maintain and increase the value of assets, they pledged their own stocks in listed companies and used them to make some investments, such as equity investment, securities investment, real estate investment... Various forms.

Including Zhang Yida himself, he also played in this way, and it was already a mature routine.

Some time ago, Ideal Auto came to raise funds. Shortly after getting investment from Zhang Yida, it received a $5.3 million Series C financing led by Huang Xin, of which nearly $3 million came from Huang Xin himself. The source of the funds was the pledge of his personal property. Own Magnesium Group stock.

　Chapter 666 has been sealed. It seems that you really can’t write about collection, even the words. A previous chapter was also blocked because of the word collection.

　　
　
(End of this chapter)