U.S. stock market.

Muddy Waters, which is known for its short stocks, released a short-selling report, which was 90 pages long, stating:

The three affiliated companies of Yimin Net Finance, Yimin Wealth, and Yimin Loan are all under the control of the same actual controller, Zhang Yida, and there are behaviors such as benefit transfer.

He also cited a case in which Yimin Wealth, led by a consortium of three Yimin companies, spent 14 billion yuan to acquire the troubled Zhongjiang Trust.

The trust company's internal management was chaotic, and it defaulted on 35 trust projects, with a total default of nearly 8 billion yuan, and the company was not worth the price of 14 billion yuan at all.

There must be a lot of tricks in trading!

In addition, a large number of Wall Street investment banks that once had a stake in China Trust have been withdrawing on a large scale in recent years.

That's an industry that is going downhill!

Muddy Waters has also commissioned a Chinese partner to investigate the defaulting project.

It was found that many projects were government credit projects and local bonds guaranteed by local governments in China, but they defaulted!

As public companies listed in the United States, the three companies must be accountable to shareholders.

Yimin Netgold was also blamed.

Muddy Waters said that Yimin Wangjin was originally a fintech company, but it spent a lot of money to acquire a local traditional bank in Indonesia.

Operationally, it seems short-sighted and stupid, does not deserve its current market capitalization, and should be valued as a bank stock.

China's P2P industry is retreating one after another, and Yimin Netgold is burdened with more than 60 billion yuan to be collected, and the transformation is difficult, and it is very likely that it will not survive.

Yimin Loan is also facing supervision, the transformation is weak, and the performance has changed greatly.

At the same time, Yimin Netfinance and Yimin Loan are also facing the same problem, with extremely high bad debts and a large number of borrowers evading debts.

The document also cites a lot of screenshots of documents that have been lurking in the borrowers, and a large number of borrowers have said that they will not repay the money if they are dead to the end.

Finally, Muddy Waters also pointed out that the risk control engine of Yimin Internet Finance and Yimin Loan is a joke full of loopholes.

......

As soon as this report came out, the three U.S.-listed companies of the Yimin Department fell in response.

Yimin Wealth's share price fell by more than 15.4%, and its market value fell to $1.692 billion, evaporating more than $308 million......

Yimin Wangjin's share price fell the next most, reaching 13.28%, and its market value fell to $2.601 billion, evaporating nearly $400 million......

Yimin Loan's share price fell 12.5%, and its market value fell to $1.05 billion, evaporating more than $150 million......

......

The three companies of the Yimin system together evaporated $860 million in one day, swiping the domestic financial circle.

Including some bosses of listed companies engaged in mutual finance, such as Lu Min, Xiao Wenjie, Tang Lin and others, they are all concerned about the further development of the situation, and they are very worried that the troubled waters will put the next target on them.

The impact of the three beneficiary companies, each of which also had its own decline, was not as severe as the beneficiary system.

The troubled waters are notorious, and Chinese concept stocks can't avoid them one by one, for fear of being bitten by this vicious dog.

......

Muddy Waters was founded in July 2010 by Carlson Bullock, a graduate of the University of Southern California with a minor in Chinese in finance and a law degree from Chicago-Kent Law School.

He moved to Modu, China in 2005 to work for a U.S. law firm, and in 2008 he founded a warehousing and logistics company.

In 2010, when Carlson visited Oriental Paper, a Chinese company listed in the United States, he saw that the company's abandoned gates, old warehouse dormitories and idle workers were very different from the financial report description, and the company's inventory was basically a pile of waste paper.

So on June 28, 2010, he gathered a group of people familiar with China's business rules and set up "Muddy Waters Company" in Hong Kong, and the first target was the Oriental Paper.

Although Oriental Paper cooperated with law firms and accounting firms to carry out investigations and self-defense, its stock price still plummeted by more than 80%, and the stock price was sluggish for a long time.

The name "muddy water" is taken from the Chinese proverb "fishing in troubled water", which shows that Carlson is a Zhihua school, has minored in Chinese in college, and has also worked in China.

The word muddy waters is also a pun: it refers to companies that specialize in investigating companies that "fish in troubled waters" in the capital market, and it also refers to "it is easier to touch fish in muddy waters", muddy the waters first, and then make a profit by borrowing and selling securities. ”

When such a big thing happened, the heads and brains of the three companies of Yimin also urgently gathered and held a meeting with Zhang Yida to discuss the response plan.

After Ding Siyao introduced the origin of the troubled waters, Zhang Yida did not express his position directly, but silently thought about how to turn this bad thing into a good thing.

"As of July this year, in the past nine years, Muddy Waters has sniped a total of 15 Chinese concept stocks and Hong Kong stocks, and if you count us, it is 18.

There are roughly three results. The first is delisting and delisting, the second is the stock price pulling down, and the third is the rebound after a short period of volatility. ”

Ding Siyao said with a serious expression, "There are relatively few people who belong to the third type, and at present, only Minhua Holdings, Spreadtrum Communications, New Oriental and Good Future have successfully fought back against the troubled waters.

Anta and we suffered short selling at the same time, and we are still in the long and short battle, and the result is unknown. ”

Zhang Yida chuckled, "How can it be so terrible, if it weren't for us, they would have scrapped 10 of the 15 companies, with a success rate of 66.7%, and it's not a hundred shots."

He is not afraid of shadows, and if he wants to play in troubled waters, then we will play with him. ”

Zhang Yida's posture, calm expression and understated language reassured several executives who were a little flustered.

That's right, isn't it just shorting, just counterattacking!

Thinking of this, Fan Hongyang calmed down, looked at Zhang Yida and said: "Mr. Zhang, then we will start to clarify now, let the audit committee take the lead, and jointly conduct a self-inspection with law firms and accounting firms." ”

Listed companies are public companies and have an audit committee, which generally consists of three directors, all of whom are independent and non-executive directors.

The main responsibilities include: reviewing and supervising the independence and objectivity of the external auditor and the effectiveness of the audit process;

reviewing the company's financial information and its disclosures;

Review the company's internal control system and audit major related party transactions......

"The self-examination is definitely going to be done, but there is no need to rush it too much. ”

Zhang Yida snorted coldly, "Take Yimin Netgold as an example, the price-to-book ratio is below 1, and the market value is not as good as the net assets."

I'm going to see where it goes? It's a big deal, let's buy it back. ”

"Huh?"

Not only Fan Hongyang, Ding Siyao and Chen Shaojie all exclaimed.

"What's wrong?" Zhang Yida didn't understand why the three of them reacted like this.

"That...... Mr. Zhang, I pledged a lot of shares. ”

Chen Shaojie said with an embarrassed face, "If it falls again, it will be liquidated!"

Zhang Yida thought about it for a while, and then figured out the reason.

Chen Shaojie joined the Yimin Department late, only has shares in Yimin Loan, holding less than 2% of the shares, and cashed out more than 10 million yuan of shares behind Zhang Yida before the collapse of mutual finance Chinese concept stocks.

With this money, I will be gone to buy a bigger house in the capital!

In order to maintain a decent life, or to maintain and increase the value of assets, he pledged his shares in listed companies and used them to make some investments, such as equity investment, securities investment, and real estate investment...... The form varies.

Including Zhang Yida, he also plays like this, and it has long been a mature routine.

Some time ago, Li Auto, which came to finance the company, received $530 million in Series C financing led by Huang Xin shortly after receiving Zhang Yida's investment, of which nearly $300 million came from Huang Xin's personal source, and the source of funds was the pledge of magnesium group shares held by him.

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