Translated by: MOS Information – Sunflower
In mainland China, on January 11, Shenzhen Qianhai Guzon Capital Company and Qianhai Capital Wealth has submitted a letter to investors that circulates on internet, stating that the company’s two real controllers, Lin Shuqing and Gu Jingteng one has passed away and one is seriously injured due to an accident. It mentioned in the letter that the public security economic investigation department and criminal investigation department has been officially involved in the investigation.
Once the news came out, it quickly gets the attention of the private equity circle. Sources revealed that the two actual controllers in trouble are Chinese Taiwanese, they are husband and wife who are around 50 to 60 years old.
IFENG.com also found that the private equity which founded in 2015, had frequently changed investors, shareholders and executives in the past six years. Beside that, former executive had been publicly condemned by regulator due to misappropriate and embezzlement of foundation’s fund. The Guzon Capital has complicated subsidiary companies. The open.tianyancha.com’s data revealed that the letter issued by Guzon Capital and Guzon Wealth’s parent company possess control of as much as 93 subsidiaries. Industry insiders said that the main purpose of setting up so many companies in a short period of time is to shift the funds.
In response to Guzon Capital promotes its high yield and raise capital for overseas project’s business model, multiple individuals from the private equity industry express that Guzon Captial is not a Qualified Domestic Institutional Investor (QDII). Under this circumstances, Guzon Capital domestically launch product and raise capital for overseas projects is very likely to operate through “project packaging”, “underground bank” and other non-compliant ways in order to shift funds or move it to overseas, subsequently promoting it to the investors with high yield return is prohibited in the private equity industry.
After Guzon Capital have been illegally operated for six to seven years, a sudden announcement to the investor stating that the persons in charged were dead and injured, all the products have been frozen, the company’s operation is illegal and undergo an investigation by the Public Security Economic Investigation Department, it is just like P2P was being exposed back then. The rights and interests of the investors in the Communist Party of China are not being protected at all, it is the same thing that happened to Pan Asia and Easy Jewel, after taking and washing away the people’s hard-earned money and the company subsequently closed down. Under the ruling of the Chinese Communist Party, all the people are only a scapegoat.
Proofread by: James797
Edited by: James797
Posted by: James797
For more information, please follow us at:
Disclaimer: This article only represents the author’s view. Gnews is not responsible for any legal risks.