Private placement financing issues under investigation

Golden Ten Data reported on June 26 that recently, a news that “a private sale of more than 5 billion yuan in Shanghai was investigated, and it was suspected of matching funds to eat black” circulated in the industry. The reporter longer verified and confirmed that the issue of capital allocation of some private sale FOF managers is being investigated recently, involving more long institutions. It is worth mentioning that since the beginning of this year, supervision has continued to increase to guide the private sale industry to clear risks and return to the main business. For example, long wick candles have carried out special verification and rectification of unmanaged private sale securities funds, and on-site inspections have been carried out on some private offerings. Longest industry insiders said that in the previous barbaric growth, the private sale industry did have problems such as capital allocation and channel business, which concealed greater risks and was very hidden, and the “gray operation” of the industry in the future will accelerate the clearing, and creating value for investors with solid investment and research skills is the way to survive private sale.