Recently, third-party wealth management company Haiyin Wealth was embroiled in a product redemption controversy.
On the 17th, Haiyin Wealth issued the latest clarification response on market public opinion.
According to the latest announcement released by the official WeChat account of Haiyin Wealth:
Due to the recent economic downturn, the project has been delayed, causing inconvenience to investors. At present, Haiyin Wealth has established a special team to actively coordinate project stakeholders in planning disposal plans. At present, according to the latest regulatory policies and industry guidance, Haiyin Wealth has voluntarily withdrawn and sorted out its existing business. The relevant plan will be provided to everyone before the end of the month. We hope everyone does not believe rumors and does not spread them.
According to Taylor's interview, Haiyin Wealth mentioned "actively exiting and sorting out existing business", which refers to the benign clearance of non-standard fixed income businesses. These non-standard debt products were previously registered on the Golden Exchange.
According to insiders, some of these products are targeted towards real estate projects, while others are targeted towards supply chain finance.
On December 13th, the stock price of Haiyin Wealth plummeted by over 40%, and in the following two trading days, it fell by 15.94% and 14.57% respectively.
And related A-share listed company Rock Group has also experienced a significant decline recently. Han Hongwei, Chairman of Haiyin Holdings, and Han Xiao, the actual controller of Rock Group, have a father son relationship.
At that time, a widely circulated chat record claimed that the due date for product liquidation had been extended. However, a staff member of Haiyin Wealth explained to the public that due to bank reasons and the fact that December was the peak period for fixed income product interest payments, the time for product liquidation to be received was extended.
On the evening of December 14th, Haiyin Holdings announced that some of its distributed asset-backed products had redemption issues and could not reach a deferred redemption agreement with relevant customers. Although Haiyin is only a distributor of these products, the customer requests the company to repay. The announcement also stated that Haiyin has established a special investigation committee composed of executives to supervise internal investigations, which is still in its early stages. The company will promptly release significant progress in the investigation.
On December 15th, a letter from Haiyin Holdings to its clients was sent, signed by Haiyin Holdings Chairman Han Hongwei, stating that it will "safeguard the interests of customers and employees and firmly take responsibility until the end.".
According to the official website, in 2006, Haiyin Wealth was established in Lujiazui, Shanghai. After more than a decade of development, the company has established more than 170 wealth centers in more than 80 major cities in China, and has gradually expanded its presence in Hong Kong, the United Kingdom, the United States, and other places.
Haiyin Wealth has over 2500 employees and provides comprehensive services such as asset allocation consulting, wealth management, and family offices for individuals and institutions with a cumulative net worth of over 146000. The main business includes wealth management, asset management, other comprehensive financial services, and health management services. Wealth management is currently its largest business segment.
On the evening of March 26, 2021, Haiyin Wealth went public on NASDAQ. According to the prospectus, Haiyin Wealth is the third largest and fastest-growing third-party wealth management service institution in China.
In addition, Haiyin Wealth disclosed in its prospectus that it is "the largest provider of fixed income real estate products in China". "The products provided are invested in real estate projects of well-known and well rated large developers such as Evergrande and Rongchuang, with a general term of 6-36 months."
The previously released financial report for the fiscal year 2023 showed that as of June 30, 2023, Haiyin Holdings had a net income of RMB 2.092 billion during the reporting period, a year-on-year increase of 7.71%; The net profit is 120 million yuan. Haiyin Holdings also disclosed that the total number of Haiyin wealth managers in this fiscal year was 1749, a year-on-year increase of 3.1%, with 46627 active customers. The number of key cities covered reached 91, and the number of wealth centers reached 185, continuing to increase compared to the previous year.