Nan Fang Du Shi Bao·2025-08-11 07:56Core Viewpoint - The recent "rebate" case involving top quantitative private equity fund Huanfang Quantitative and China Merchants Securities has drawn significant market attention, with several key personnel being investigated for their roles in the scheme [2][3][5]. Group 1: Case Details - The case involves former Huanfang Quantitative market director Li Cheng and several executives from China Merchants Securities, including Meng Pengfei, Liu Huan, and Gao Xiang, who have been handed over to judicial authorities [2][3]. - Meng Pengfei allegedly arranged for relatives to serve as exclusive brokers for Huanfang Quantitative, extracting performance bonuses totaling 1.18 billion yuan from trading commissions between 2018 and 2023 [3]. - Of the 1.18 billion yuan, over 20 million yuan went to Li Cheng, 10 million yuan to Liu Huan, and the remaining 800 million yuan was retained by Meng Pengfei [3]. Group 2: Regulatory Context - The practice of "rebate" involves returning a portion of commissions based on client trading volume or frequency, which is common in the industry to enhance client loyalty, although the specific rebate ratios and paths can vary [3]. - The Securities Brokerage Business Management Measures explicitly prohibit such practices, stating that securities firms and their personnel must not directly or indirectly return commissions to investors or provide gifts or other non-securities services [3]. Group 3: Company Background - Huanfang Quantitative, established in February 2016, has grown to become a leading quantitative private equity firm in China, managing approximately 60 billion yuan, down from a peak of over 100 billion yuan in 2021 [8]. - The firm has been recognized for its performance, frequently ranking in the top five for returns over various time frames in the private equity sector [8]. - In early 2025, Huanfang Quantitative gained attention for its AI model "DeepSeek," which contributed to a surge in related stock prices [8].