1 million to buy private equity in six years, only 19,900 left, the court judged compensation for about 30% of the loss

　　The Paper reporter Sun Mingwei

　　The investment of 1 million lost more than 98% in six years, and the investors angrily took the private equity and the custodian to court together.

　　On February 3, China Judgment Documents Network disclosed a civil judgment.

Investor Li Mou spent 1 million yuan to buy a private equity product under Beijing Qianyuan Taihe Asset Management Co., Ltd. (hereinafter referred to as "Qianyuan Taihe"), but only 19,900 yuan remained after 6 years.

In the end, the court supported compensation of 307,000 yuan.

At present, this private equity has been cancelled, and its manager registration has been cancelled.

　　Loss over 98% in 6 years

　　A civil judgment issued by the People's Court of Dongcheng District, Beijing disclosed the case in which private equity investors lost more than 98%.

　　In December 2015, Li bought a product of Qianyuantaihe Fuli No. 1 Private Equity Securities Investment Fund (hereinafter referred to as "Fuli No. 1") under Qianyuantaihe.

Six years later, in December 2021, Li could only redeem 19,900 yuan, a loss of more than 98%.

　　In a rage, Li sued Qianyuantaihe and its product custodian, Huatai Securities, to court, demanding that Qianyuantaihe and Huatai Securities compensate him for the principal of 980,000 yuan.

　　Li believes that Qianyuan Taihe failed to fulfill the obligation of reminding investors of the suitability of investors, did not conduct questionnaire surveys, failed to confirm whether they belonged to qualified investors, and failed to disclose periodic reports and fund net value information in a timely manner; Previous performance; during the fund raising process, there were cases of misappropriating funds without authorization, investing beyond the stop loss line agreed in the contract, etc.

At the same time, Li believes that Huatai Securities, as the custodian, provided the fund account to Qianyuan Taihe knowing that the fund involved in the case was not raised for the first time, and failed to fulfill the custodian’s obligations.

　　Qianyuan Taihe said that since the establishment of Fuli No. 1, in accordance with the fund contract, the net value information of the fund has been disclosed to investors by SMS every week, and redemption is open once a month.

The last disclosure was on September 27, 2021, and the net value of Fuli No. 1 on September 24, 2021 was 0.3277 yuan.

Based on this, Qianyuan Taihe believes that the net value fell from the initial 1 yuan to 0.3277 yuan, which is caused by market risks. Investors are aware of the risks and should bear the losses themselves.

　　However, starting from October 2021, this product stopped disclosing the net worth. Qianyuan Taihe said that this was because the actual controller Liu Zongzhi died of illness on October 7, 2021, and the company was unable to continue operating, so the net worth was not disclosed according to the contract.

　　In addition, during the trial process, Huatai Securities provided the account flow of the fundraising, screenshots of the review system for valuation and periodic reports, screenshots of the investment supervision system, and as many as 38 emails reminding the manager of illegal investment behavior.

It is used to prove that the corresponding obligations of the custodian have been fulfilled and there is no breach of contract.

The court recognized this.

The defendant's private placement has been revoked from the manager's registration

　　After the trial, the court stated that Qianyuan Taihe had failed to fulfill its obligations as a private equity fund manager.

When the net value of Fuli No. 1 Fund was between 0.3277 yuan and 0.02114 yuan, it failed to disclose to investors in a timely manner as agreed in the agreement, resulting in a loss of 306,560 yuan.

After Qian Yuantaihe confirmed and agreed to make compensation, the court supported this.

　　The court also pointed out that Qianyuan Taihe "had no breach of contract other than failing to disclose the net value of the fund in a timely manner."

The "Administrative Measures for the Raising Behavior of Private Equity Investment Funds" was implemented in July 2016; before that in December 2015, no questionnaire survey was conducted when the fund contract was signed, which did not violate the legal provisions at that time.

The parties did not provide other evidence to prove that Qianyuantaihe had false propaganda and misappropriation of funds; there was also no evidence to prove that Huatai Securities had breached the contract.

　　To sum up, the People's Court of Dongcheng District, Beijing made the first-instance judgment, and Qian Yuantaihe should compensate Li for the principal loss of 306,560 yuan; the other principal and interest losses should be borne by the parties themselves.

　　In addition, the court held that Qianyuan Taihe had no breach of contract other than failing to disclose the net value of the fund in a timely manner.

The loss and interest loss caused by Li's failure to redeem the fund during the fund opening period shall be borne by Li himself.

　　During the trial, the court also found that some investors had reported Qianyuan Taihe to the Beijing Securities Regulatory Bureau. ), failing to truthfully disclose information to investors in accordance with the fund contract, administrative supervision measures will be taken against Qianyuan Company.

　　In fact, in January this year, the China Securities Investment Fund Industry Association (referred to as "China Foundation Association") issued a notice of disciplinary action, canceling the membership of Qianyuan Taihe and revoking the registration of its manager.

　　In January, in view of the inability to obtain effective contact, the official website of the China Fundamental Association issued the "Announcement on the Service of Prior Notice of Disciplinary Actions (Beijing Qianyuan Taihe Asset Management Co., Ltd.)".

It disclosed the advance notice of disciplinary action: "After investigation, Qian Yuantaihe's legal representative and main person in charge are deceased, and the rest of the senior executives have resigned; there are no in-service personnel, no actual office space, and no basic business requirements Facilities and conditions. The China Foundation Association intends to cancel its membership and cancel the registration of private equity fund managers.”

　　According to the official website of the China Foundation Association, Qianyuan Taihe was established in May 2014, with a management scale ranging from 0 to 500 million yuan.

　　Of the 12 products registered on the official website of the China Foundation Association, 9 have been liquidated so far.

As for the private equity product Fuli No. 1 purchased by Li, according to information from the China Foundation Association, Fuli No. 1 was established in April 2015, and the filing was completed that month.

Its monthly report, quarterly report and annual report all have many pieces of undisclosed information, and the opening rate of investor inquiry accounts is 0%.

At present, this product has not yet been liquidated, and the scale in the third quarter of 2021 is less than 5 million yuan.