Off-site allocation under strict supervision: "Acquaintances can be low-key and cautious", 10 times leverage is not uncommon
China-Singapore Jingwei client, June 23 (Luo Kun) Recently, various local regulatory authorities have fought hard to rectify off-site funding, but China-Singapore Jingwei reporters found in the investigation that there are still many who claim to be "compliant" and "safe" 'S OTC funding platform is active in the market, instilling investment myths with high leverage and high returns to investors.
"Acquaintances can do, low-key and cautious"
Recently, with the improvement of the market, the off-site fund-raising activities have appeared, Chongqing, Qingdao, Shanghai, Guangdong, Beijing and other securities regulatory bureaus have issued a "blacklist" of 229 institutions that are not qualified for legal securities and futures business operations, most of which It is an off-site funding platform.
After all over-the-counter funding has started to be rectified in various places, Zhang Yang, who previously distributed mass-funded advertisements in the circle of friends and WeChat groups, has become low-key. Zhang Yang is the person in charge of an over-the-counter capital allocation company in Beijing. The title on his business card is the chairman of an investment company and the general manager of another investment consulting company. The main businesses of these two companies include private placement of listed companies. , Block trading and stock allocation etc.
According to its introduction, after signing a contract with the company, customers who need to allocate funds need to pay a part of the deposit, and then invest the funds and risk deposits of stocks. At this time, together with the funds lent by the company, they will be injected into the special accounts designated by both parties. Stock trading.
When asked whether strict regulation has an impact on the business, Zhang Yang answered eight words: acquaintances can do, low-key caution. Then it was added, "No one is checking without publicity."
Wang Lei, who works at a Shanghai-based fund-raising company, believes that this rigorous investigation has nothing to do with himself. "All the checks are online platforms." He also reminded reporters "enthusiastically", "Online funding is basically aimed at the customer's principal, no matter how you operate, you will eventually lose money."
Wang Lei believes that his business is in a gray area, but it does have significance in the financial market. Therefore, despite the high pressure of supervision, as long as there is an opportunity for off-site allocation, it will "return".
Lawyer Du Yunfeng, a senior partner of Beijing Haizhengcheng Law Firm, pointed out in an interview with Sino-Singapore Jingwei Client that off-site allocation of capital is a kind of private lending behavior. On the one hand, investors who make fund allocations tend to be "immediately benefited," and often want to "expand with small profits." At the same time, off-site funding agencies also want to obtain high returns; on the other hand, the corresponding regulatory measures and institutional systems, including the legal system, are insufficient. Sound, and the implementation and application of laws are not in place. The combination of these two factors has led to the off-site allocation has been active.
Ten times leverage is not uncommon
Zhang Yang told reporters from China Jingxin Jingwei that at present the company where he works can make up to 4 times leverage for off-site allocation. "According to my experience, no matter how high it is, it will not benefit both parties." As for the interest rate of capital allocation, Zhang Yang said the monthly interest rate is 1.4%. This means that the annualized interest rate is as high as 16.8%.
Wang Lei said that his company opened independent accounts for customers, and leveraged up to 5 times. "Independent accounts can only be up to 5 times, our side is relatively high, before we also have sub-accounts, which can be ten times, it is very impressive for the company from the point of view of revenue, but there will be operations for customers All kinds of small problems, and then we stopped sub-storage."
According to its introduction, the allocation of funds is divided into sub-warehouses, independent households and two integrated households, the safest is the independent households. According to the reporter of China New Singapore Jingwei, the origin of the sub-account is as follows: First, the allocation company opens an account in the securities company, this account is commonly known as the parent account, and a sub-warehouse software is added behind this account, and it is divided into N children under this account. Account. All funds are in the parent account, and the client trades on its own through the sub-account, and how much money is required to be transferred from the parent account.
"There is no capital risk, except that the matching company will charge an additional transaction fee on the basis of interest. The handling fee can be adjusted in the back-end software by the matching company." Wang Lei said that customers who now understand the allocation will require Open an independent account, because an independent account is a separate parent account, with only interest, and the transaction fee allocation company can't increase it. It's just how much the securities company charges.
Compared with the "low-key conservative" of offline platforms, some online funding platforms can still provide 10 times leverage, and promote the case of "profit-making people" who have made huge profits through fund-raising on the website pages.
Screenshot source: an online funding platform
However, industry insiders told China New Zealand Jingwei reporters that many online funding platforms are playing the "low interest rate" gimmick. Once investors hook, they will find that transaction fees are the big head, and the backstage can be used at any time. You may encounter the problem that the principal cannot be withdrawn.
A case published on a funding information website shows that on September 4, 2019, an investor recharged the first principal of 1,850 yuan on the Qitian funding app for equity allocation. The investor did not verify the trueness in time at the time. Fake disk, deceived by the false propaganda of Qitian Funding Platform. During this period, the investor has been operating on Qitian Funding Platform. As of early November 2019, the investor recharged a total of 400,000 principal on Qitian Funding Platform. , The principal and profit can not be withdrawn, and the investor's recharged funds are all scammed. Such cases are also common on various social platforms.
A spokesperson for the China Securities Regulatory Commission reminded investors that none of the so-called over-the-counter funding platforms are qualified to operate securities business, some are suspected of engaging in illegal securities business activities, and some even use "virtual disk" and other methods to engage in fraud and other illegal activities. criminal activities. "Invite investors to raise awareness of risk prevention and stay away from off-site allocation to avoid property damage. If they are defrauded by participating in off-site allocation, please report to the local public security organ in a timely manner."
Lawyer: Off-site allocation has these risks!
Du Yunfeng pointed out that for investors, over-the-counter capital allocation has great risks.
First, the capital cost is enlarged. Ordinary investors need to guarantee their own funds for the allocation of funds, but also need to bear high interest, some up to 30%, or even 50%. At the same time, there will be unauthorized increase in transaction rates by the funding agencies, which is generally difficult for investors to detect;
Second, trading risks are amplified. The higher the ratio of allocation leverage, the greater the risk of loss. Over-the-counter funding agencies have surpassed various regulatory laws and regulations, and have no proper choice and management mechanism for investors. Instead, in order to obtain more benefits, they often do not review investors’ ability to withstand risks, and deliberately attract many “uncles” and newcomers. Investors in the stock market with very low risk tolerance. At the same time, continuously increase the leverage ratio and set a mandatory liquidation line. Once the stock price fluctuates greatly, it is easy to touch the liquidation line. Investors cannot be forced to close the position immediately, and they will be forced to close the position, such as 1:5 leverage, a Down limit, it is likely to be forced to close the position. Once the liquidation is forced, investors will lose their money.
Third, there is a huge risk of being cheated. All kinds of off-site funding agencies in the market are outside the supervision. Many funding agencies use the name of funding to commit fraud and other criminal acts. Some set up virtual trading boards and some modify the password of the investor account. Investors' deposits were diverted away, and some of them went directly.
He pointed out that to further regulate off-site allocation, we need to start from three aspects. First, popularize the law, and increase the explanation and popularization of relevant laws and regulations; second, improve the corresponding legal system, and form laws and regulations or judicial interpretations in time for practical problems; third, strengthen administrative law enforcement and application of laws, and the Securities Regulatory Commission. The Committee and the local securities regulatory bureaus actively and proactively stepped up efforts to crack down on off-site funding and formed a normal deterrent to off-site funding. (Sino-Singapore Jingwei APP)
(Zhang Yang and Wang Lei are pseudonyms in the text.)
(The opinions in this article are for reference only, and do not constitute investment advice. Investment is risky and you need to be cautious when entering the market.)
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