Core Viewpoint - The financial crisis surrounding the "Xiangyuan system" continues to escalate, with the actual controller Yu Faxiang facing criminal charges, negatively impacting the stock prices of Xiangyuan Cultural Tourism, Jiaojian Co., and Haichang Ocean Park [2][11]. Stock Price Movements - On December 22, the three companies announced that Yu Faxiang was taken into criminal custody, leading to significant stock declines on December 23: Xiangyuan Cultural Tourism down 2.80%, Jiaojian down 4.89%, and Haichang down 7.29% [12]. - In December, the stock prices of the three companies experienced substantial declines: Haichang down 35.71%, Xiangyuan Cultural Tourism down 19.89%, and Jiaojian down 37.09% [4][12]. - On December 24, there was a slight recovery in stock prices, with Xiangyuan Cultural Tourism closing at 5.92 yuan (up 0.17%), Jiaojian at 7.65 yuan (up 0.92%), and Haichang at 0.450 HKD (up 1.12%) [4][13]. Financial Product Defaults - Since November 28, multiple financial products guaranteed by Xiangyuan Holdings and Yu Faxiang have faced payment defaults, involving over 200 products and a total outstanding amount exceeding 200 billion yuan, affecting nearly 10,000 investors [3][12]. - The underlying assets of the defaulted financial products are primarily accounts receivable from real estate and cultural tourism projects within the Xiangyuan Holdings system [14]. Ongoing Investigations and Risks - A support team was established by the Shaoxing government on December 12 to assist Xiangyuan Holdings, indicating a direct link between the financial product defaults and Yu Faxiang's criminal charges [14]. - Legal experts suggest that Yu Faxiang's legal responsibilities are closely tied to the payment crisis, as he is both the chairman of Xiangyuan Holdings and responsible for the payment obligations of the financial products [14]. Project Status and Concerns - Several projects under the Xiangyuan system have been reported as halted or under construction, raising concerns about the company's operational stability [15]. - Past issues of non-disclosure regarding non-operational fund usage have increased investor anxiety, with Xiangyuan Cultural Tourism previously fined for failing to disclose 410 million yuan in such funds [17]. Risk Assessment - The core risks facing the three listed companies include the implications of the actual controller's legal issues, potential stock freezes, price volatility, and investor rights protection [18].