Core Viewpoint - Quantitative private equity firm Jingqi Investment has reported itself for internal misconduct, a rare occurrence in the industry, highlighting serious governance issues within the firm [1][2]. Group 1: Company Misconduct - Jingqi Investment disclosed that certain internal personnel and external affiliates were involved in illegal activities, specifically manipulating fund operations to repeatedly collect subscription fees, thereby infringing on investors' rights [2][6]. - The firm indicated that preliminary evidence points to abnormal transactions involving four products, including the Lejin Shangfeng No. 1 Private Securities Investment Fund [2][6]. Group 2: Shareholder Dispute - The internal conflict at Jingqi Investment began in June, with the legal representative Fan Siqi claiming he was ousted by other shareholders, leading to a public dispute over company governance [1][6]. - Fan Siqi accused other shareholders of unauthorized actions, including the illegal use of company seals and mismanagement of funds, while the opposing shareholder Tang Jingren alleged that Fan Siqi attempted to liquidate the company without consent [7][9]. Group 3: Industry Implications - The shareholder disputes at Jingqi Investment have reignited discussions on governance issues within private equity firms, particularly as the industry has seen rapid growth and increasing complexity in stakeholder relationships [10]. - Industry experts emphasize the need for private equity firms to establish clear governance structures and decision-making processes to mitigate conflicts and protect investor interests as they scale [10][11].

Core Viewpoint - Recent internal conflicts at Jingqi Investment have led to allegations of serious violations involving fund operations, impacting investor rights and raising governance concerns in the private equity sector [1][2][10]. Group 1: Company Conflicts - Jingqi Investment has been embroiled in a shareholder dispute since June, with the legal representative Fan Siqi claiming he was ousted by other shareholders [1][10]. - Fan Siqi has accused other shareholders of mismanaging company assets and unauthorized actions, including the illegal use of company seals and signatures [15][16]. - The company has reported that certain internal personnel and external parties have engaged in repeated operations during fund subscription and redemption, leading to the misappropriation of fund assets [1][2]. Group 2: Regulatory Actions - A risk warning issued by Jingqi Investment calls for the revocation of the fund management qualifications of involved parties, including Shanghai Jingqi Investment Management Co., and Shenzhen Lejin Asset Management Co. [2]. - The company has indicated that it will pursue legal action to resolve the ongoing disputes and protect its interests [15][16]. Group 3: Industry Implications - The shareholder disputes at Jingqi Investment highlight broader governance issues within the private equity industry, particularly among quantitative private equity firms [16]. - Industry experts suggest that as private equity firms grow, the potential for conflicts over profit distribution and decision-making increases, necessitating clearer governance structures [16][17].

Core Viewpoint - The conflict between the founders of Jingqi Investment, particularly the expulsion of Fan Siqi, highlights governance issues within private equity firms in China, emphasizing the need for improved ownership structures and incentive mechanisms to ensure sustainable development [2][8][10]. Group 1: Incident Overview - Fan Siqi, the founder and fund manager of Jingqi Investment, claims he was expelled from the company during a shareholder meeting that he was notified about only 9 minutes in advance [2][6]. - In a letter to investors, Fan announced his resignation and the initiation of the liquidation process for the funds he managed, which was later clarified by Jingqi Investment as affecting only a small portion of their total assets under management [4][9]. - The dispute escalated after Fan's article circulated online, accusing the other founder, Tang Jing, of orchestrating his removal without proper discussion [5][6]. Group 2: Company Background - Jingqi Investment was established on March 9, 2015, and registered as a private securities investment fund manager on August 6, 2015, with a management scale between 1 billion and 2 billion [9]. - The ownership structure includes Fan Siqi holding 36.36% of the shares, while Tang Jing and Mao Noping hold 27.27% each, and Shanghai Jing'erqi Enterprise Management Partnership holds 9.09% [9]. Group 3: Governance Issues - The incident has drawn attention to the governance problems prevalent in private equity firms, with experts suggesting that the lack of a reasonable ownership structure and internal checks can lead to power struggles and instability [8][10]. - Recommendations for improving governance include optimizing ownership distribution, establishing internal checks and balances, designing fair incentive mechanisms, and enhancing transparency through better information disclosure [10].