Financial tycoon in trouble! A profit chain of over 100 million exposed...

Recently, many investment banking bigwigs have encountered issues one after another.

'Zhejiang's top investment banker' Zhu Dongchen has reportedly gone missing, with news suggesting that he was taken away directly from the airport, and it's been over a month.

He used to work in the Zhejiang financial system, later ventured into a brokerage to build an investment banking team, and had quite a network in Zhejiang.

However, in 2020, when the Kangmei Pharmaceutical case broke, the brokerage's sponsorship qualification was suspended, and he switched to another securities company, quickly making the new company's sponsorship business the second in the province that year.

Over the years, he has sponsored around thirty to forty listed companies, wielding significant influence.

His troubles may stem from his connections, as rumors suggest he might be involved in the 'Guo Xudong case'.

In October, the 'Iron Lady of the IPO Review' Guo Xudong reported to authorities in Zhejiang, allegedly disclosing a group of accountants and sponsors.

She has served on the IPO review committee for multiple terms, reviewing many listed companies, but also faced numerous issues, such as the fraudulent issuance of St. Gaohong, which involved 19.8 billion in fraud and raised 1.2 billion.

Another incident involved the 'revolving door' between politics and business: in 2018, X Feng Securities went public, and in 2019, Guo Xudong resigned to join the company of X Feng Securities' major shareholder as vice chairman.

Guo Xudong's revolving door was facilitated by Yu Lei, then chairman of X Feng Securities. In February this year, Yu Lei was detained, and not long after, vice president Zhai Chenxi was also taken away.

Yu Lei became the 'youngest secretary of the board' at 25 and was the chairman of a brokerage at 28, bringing a small local brokerage public.

Zhai Chenxi, known as the 'Queen of IRS', set a record of 150 million in average team profit when dealing with bonds; while managing funds, he reached a scale of 80 billion; after being brought into the brokerage by Yu Lei, the company's bond issuance quickly reached tens of billions.

Later, the bond market plummeted, causing huge losses for the brokerage.

There are many interesting things in this, right? It needs to be investigated, right?

Another investment banking bigwig is experiencing a 'second imprisonment'.

In 2015, the A-shares fell from their highs, with 'thousands of stocks hitting the limit down', and at the end of that year, Chen Jun, an executive at a certain securities firm, was taken away for investigation.

At that time, there was no evidence, and he returned to work three months later, but he didn’t stay long before resigning to start a private equity fund.

What’s the reason this time?

There are many rumors, but the biggest speculation is still related to the already fallen Yang Jiaohong.

Yang Jiaohong worked on the IPO review committee for over 20 years and resigned in 2016, citing 'taking care of her father'.

After leaving, she entered a private equity fund, coincidentally, the owner was Chen Jun.

On the surface, the two were 'golf buddies'; Yang Jiaohong loved golf, and her skills were reportedly close to that of a top amateur, while Chen Jun practiced hard to get closer to her, and they often played together.

But in reality, one was rich, the other once had power, and still held influence after leaving; they were a perfect match.

What were they doing? Sudden shareholding.

Some companies planned to go public, with previous employers as sponsors, and Yang Jiaohong could influence the IPO, making private equity investment not a violation; early investments and later cashing out could yield returns of 300%, which is considered a small matter, making billions from a single company, with Yang Jiaohong behind as a shadow shareholder.

As for the performance peaks or performance reversal later, it was no longer her concern.

Now, even after 9 years since resigning, she has still been arrested.

When it comes to making money, financial tycoons love 'rat trading'.

Not long ago, the Securities Regulatory Commission issued two major fines, one for 135 million and another for 159 million, while several hundred thousand fines during the same period could only be considered minor penalties.

The first, Chen Moutao, was a veteran of a brokerage, employed for over 20 years, and a technical expert, who rose to vice president.

In theory, he was not allowed to trade stocks, but this Mr. Chen played 'dark under the lamp', as he was a big president publicly, claiming 'institutional practitioners are prohibited from participating in trading to prevent conflicts of interest', while at home he traded stocks in someone else's name, engaging in 'rat trading'.

However, his trading skills were not impressive either; he had all the problems of retail investors.

For example, frequent operations; in three years of synchronous trading, he bought and sold as many as 585 stocks, averaging one transaction every two days.

The returns were also mediocre; from 2011 to 2023, over 12 years, the total transaction amount was 4.544 billion, with a profit of only 26.4001 million.

After being fined 135 million and banned from the industry for '8+5 years', he still defended himself, wanting to mitigate the penalty by claiming 'inability to bear the fine' and 'contributions to the financial industry'.

However, hard work does not relate to violations.

The second individual, Zhan Xiang, also violated investment rules during his tenure.

His penalty was not as specific, but this name is the same as a vice president of a brokerage.

He was fined 159 million and banned from the industry for 5 years.

These so-called bigwigs are all elites in the industry, but in the face of interests, all professional qualities and ethics are thrown away; various violations are easy to handle, directly using benefits to weave a huge network of interests in the industry.

In recent years, regulation has become increasingly strict; resigning or delisting is no longer a shield.

'Pulling out the radish brings out the mud'; the tighter the network of interests, the more they can embed themselves.

What does that saying go? 'Don’t extend your hand; if you do, you'll be caught.'