Xin Lang Cai Jing·2025-08-08 12:00Core Viewpoint - The article reveals details about the "rebate incident" involving Li Cheng, the market director of Huanfang Quantitative, and the brokerage firm China Merchants Securities, highlighting the intricate relationships and interests between quantitative private equity firms and their cooperating brokerages [1][2]. Group 1: Incident Details - The key figure in the rebate incident is Meng Pengfei, who served as the general manager of the Shenzhen Nand East Road branch of China Merchants Securities from June 2018 to February 2023 [1]. - During his tenure, Meng arranged for his relatives to act as exclusive brokers for Huanfang Quantitative, receiving a total of 1.18 billion yuan in performance bonuses, with over 200 million yuan going to Li Cheng and 100 million yuan to Liu Huan [1]. - Meng attempted to secure his position by offering 3 million yuan in gold to his superior, Gao Xiang, who later returned the gold and was investigated in March of this year [1]. Group 2: Huanfang Quantitative's Growth - Huanfang Quantitative's management scale grew significantly, reaching approximately 30 billion yuan by the end of 2017, doubling in 2018, and surpassing 100 billion yuan in 2019, eventually becoming the first quantitative private equity firm in China to exceed 1 trillion yuan in 2021 [2]. - The timing of Huanfang Quantitative's trading activities at China Merchants Securities coincided with its rising industry profile and impending growth [2]. Group 3: Trading Volume and Rankings - From 2017 to 2023, the trading volume at the Shenzhen Nand East Road branch of China Merchants Securities increased dramatically, with trading volumes of 1,819.72 billion yuan in 2019, 9,013.5 billion yuan in 2020, and 10,687.84 billion yuan in 2021, leading to significant improvements in its ranking among all brokerage branches [2]. - Despite a decline in trading volume in 2022 and 2023, the branch maintained high trading volumes of 5,631.09 billion yuan and 7,130.64 billion yuan, ranking 18th and 8th respectively [3]. Group 4: Industry Trends and Competition - The quantitative private equity industry in China has rapidly developed, with an estimated total scale of approximately 837 billion yuan by the end of 2024, including around 768 billion yuan in stock holdings [5]. - As of July 25 this year, there are 44 quantitative private equity firms in China with assets exceeding 10 billion yuan, indicating a competitive landscape among brokerages to attract these influential firms [6]. Group 5: Broker-Private Equity Relationships - The collaboration between private equity firms and brokerages typically involves brokerage services, distribution, custody services, and other financial services, with brokerages earning commissions from these activities [7]. - The choice of brokerage by leading quantitative private equity firms often depends on the performance of trading systems and fee structures, with a typical trading fee around 0.12% [7]. - Relationships and personal connections play a significant role in these collaborations, which can lead to potential issues when large financial interests are involved [7]. Group 6: Custody and Regulatory Aspects - Huanfang Quantitative has a high percentage of its products (58.06%) under the custody of China Merchants Securities, indicating a deep partnership [8][9]. - Legal experts highlight that while private equity firms may negotiate commissions with brokerages, any undisclosed or improper financial arrangements could lead to regulatory scrutiny and penalties [11][13].