The Asset Management Association of China (hereinafter referred to as "AMAC") recently disclosed the list of the 30th batch of missing private placements that were cancelled due to the three-month public announcement period and failure to contact the association. A total of 60 private placements were cancelled. .

In addition, since June this year, securities regulatory bureaus in Beijing, Zhejiang, Guangdong and other places have successively issued fines against private equity institutions, and industry supervision has continued to tighten.

According to the latest data from the China Association for Fundraising, there are currently 24,600 private equity fund managers, nearly 130,000 private equity fund products, and a private equity fund scale of 20.38 trillion yuan.

In recent years, while the scale of private equity funds has maintained a growth trend, chaos has occurred frequently, including non-compliant operation issues such as filing procedures, disclosure of important information, and compliance with fund management principles. These chaos have attracted the attention of regulators.

  40 private equity funds "lost contact"

  On the evening of August 5, the China Foundation Association announced the 30th batch of missing private placement lists that were cancelled due to the expiration of the three-month publicity period and the failure to actively contact the association.

Specifically, a total of 40 private equity funds met the cancellation conditions of the three-month public announcement period, and did not actively contact the association and provide valid certification materials.

Institutions that have been cancelled are no longer qualified as private equity fund managers, and may no longer operate in the name of private equity funds.

  In addition, the China Foundation Association also issued an announcement to cancel the registration of 20 private equity fund managers.

The announcement shows that these 20 private equity firms had abnormal business conditions and failed to submit special legal opinions that meet the requirements within three months after the written notice was issued, so they were cancelled.

In fact, the rectification of private funds by supervision did not start recently. In 2017, the China Foundation Association issued an announcement saying that from the date of the announcement of the missing institutions, the private fund managers of the missing institutions will be listed within three months. If the association fails to contact the association and provide valid certification materials, the association will cancel its private equity fund manager registration.

  According to the information published by the China Foundation Association, as of August 8, 2,267 private equity institutions have been cancelled by the China Foundation Association for violations.

Judging from the annual cancellation data, from 2018 to 2021, the number of private equity institutions cancelled by the China Foundation Association was 90, 516, 608 and 593 respectively, and the number of private equity institutions cancelled by the China Foundation Association this year has also exceeded 370 Family.

  Cybernaut's private placements are frequently punished

  The institutions that have been cancelled due to the loss of contact this time are mainly private equity funds, including Cybernaut, Hengjiu Bineng, China Investment Baiguan, Zhongtian Hongye, Cathay Pacific Rongxin, Chengjin Fund, Zhongrong Xinchuang, Boao Capital, CCB Investment, Zhongjianxiang Investment, Wendao Huitong, etc.

One of the most famous is Beijing Cybernaut Innovation and Technology Investment.

According to public information, Cybernaut Investment Group, with a management scale of over 200 billion yuan, is well-known in the industry and has a number of private equity fund management institutions.

According to the official website, Cybernaut Investment Group was founded by Silicon Valley entrepreneur Zhu Min in 2005. After being invested by Cybernaut, the companies that have been successfully listed include Focuslight Technology, Spreadtrum Communications, Meili Cloud, Yinfei Storage, Daily Interactive, etc.

  In recent years, private placements controlled or held by Cybernaut Group have frequently been punished for compliance issues.

According to the information released by the China Enforcement Information Open Network in 2018, Cybernaut Investment Group was also listed as a "dishonest person subject to enforcement" because it "has the ability to perform but refuses to perform the obligations determined by the effective legal documents".

In 2019, Zhu Min was listed as a "dishonest person subject to execution" for "failure to perform the obligations determined by the effective legal documents".

According to Tianyan Check, Cybernaut Investment Group Co., Ltd. has 74 “self-risks” and more than 1,000 surrounding risks.

Zhu Min, the founder of Cybernaut, has also been taken to restrict consumption and has been listed as the person to be executed many times.

  China Association for Fundamentals Reminds Investing with Caution

  In recent years, the private equity industry has become more regulated, and all kinds of chaos have been rectified.

In April this year, the China Securities Regulatory Commission stated in the 2022 work conference on private fund and regional equity market supervision, anti-fraud and clean-up work that it is necessary to improve the supervision rules of private funds, optimize the supervision and services of private funds, and steadily resolve industry risks and promote the healthy development of the industry. .

  According to industry insiders, private equity funds have experienced a period of brutal growth before, and there are many problems in their development.

With the regulation of institutional compliance and industry development becoming the focus of regulatory efforts, in addition to considering the continuity and stability of performance, private equity institutions also urgently need to build a complete corporate governance system and compliance risk control mechanism, otherwise it will be difficult for them to develop lastingly in this industry.

  China Foundation Association also reminds investors to continue to pay attention to the integrity and compliance of private equity fund managers, make fund investment decisions prudently, and protect their legitimate rights and interests through the dispute resolution mechanism and relevant legal channels agreed in the fund contract.

  The association will continue to adhere to the basic policy of "supporting the good and limiting the bad", and constantly improve the integrity information recording mechanism of the private equity fund industry, so as to promote the compliant and healthy development of the industry.

  Text / reporter Zhu Kaiyun

  Coordination / Yu Meiying