Core Viewpoint - The case involving Chang'an Bank and Zhejiang Youce Investment has seen significant developments, with the Zhejiang Securities Regulatory Commission imposing fines totaling 21 million yuan on Youce Investment and its responsible personnel, alongside a lifetime ban for the actual controller from the securities market [1][10]. Group 1: Incident Overview - In the summer of 2024, a scandal emerged regarding 1.252 billion yuan in funds that seemingly disappeared, with investors discovering that their accounts at Chang'an Bank had dwindled to only 86,000 yuan [3][12]. - The issue originated from a deposit contract signed between Youce Investment and Chang'an Bank, where three private fund products had a total deposit of 1.252 billion yuan, but by July 2024, the account balance was alarmingly low [4][13]. - Youce Investment announced a suspension of redemption for 11 products on July 10, 2024, citing Chang'an Bank's failure to provide an account balance statement as the reason [5][12]. Group 2: Dispute Between Parties - Both parties presented conflicting narratives; Youce Investment accused Chang'an Bank of illegally opening online banking, while the bank claimed the online banking was activated at the client's request [3][6]. - Chang'an Bank stated that the contract prohibited online banking, but it was later opened based on a supplementary agreement, and monthly reconciliations were completed by Youce Investment, negating claims of the bank's failure to provide account details [6][14]. - On August 20, 2024, Chang'an Bank issued a statement declaring that reports of the 1.252 billion yuan deposit being lost were severely misleading, asserting that the documents used in the reports were forged [6][14]. Group 3: Fund Flow and Relationships - Investigations revealed that the funds from the accounts were transferred to three companies, which had complex relationships with Youce Investment, facilitating the movement of funds [7][15]. - The companies involved included Baoji Phoenix Ridge Equity Investment Management Co., West Xi'an Changrong Investment Management Co., and Baoji Yuanda Asset Management Co., with ownership structures indicating significant interconnections [7][15]. Group 4: Resolution and Regulatory Actions - As investigations progressed, the truth emerged, with Youce Investment's controlling shareholder admitting to issuing false announcements and acknowledging the negative impact on Chang'an Bank's operations and reputation [8][16]. - On December 12, 2025, the regulatory authority announced penalties against Youce Investment for misappropriating fund assets and providing false information, leading to the revocation of its management registration [8][16].

Core Viewpoint - The article discusses the significant financial losses incurred by Zhonglai Co., Ltd. due to the inability to redeem a 200 million yuan private equity fund, leading to a total loss of approximately 180 million yuan, which is about half of the company's net profit for that year [6]. Group 1: Fund Redemption Issues - Zhonglai Co., Ltd. attempted to redeem a 200 million yuan private equity fund but faced repeated refusals from the fund manager, ultimately only managing to redeem 20 million yuan after ten months [2][3]. - By the end of November 2020, the net value of the remaining fund was reported at 163 million yuan, but this value drastically decreased due to poor investment decisions [3][4]. Group 2: Financial Losses and Legal Proceedings - The company experienced a staggering loss of 97.18% in one month, reducing the fund's value to just 4.61 million yuan [4][5]. - The case escalated to litigation, with the Jiangsu High Court ruling that the fund manager, Li Pingping, must compensate Zhonglai Co., Ltd. for all losses incurred, totaling 158 million yuan plus 10% annual interest [6]. Group 3: Recurrent Issues with Private Equity Funds - In 2025, a similar situation arose with another private equity fund managed by Li Pingping, where investors were unable to redeem their 200 million yuan investment due to claims of needing to share profits from alleged risky operations [8][9]. - The Shenzhen Securities Regulatory Bureau intervened but could not facilitate the redemption of funds for the investors, highlighting ongoing issues within the private equity sector [9]. Group 4: Li Pingping's Controversial Role - Li Pingping has been identified as a central figure in both cases, with allegations of using complex maneuvers to evade legal consequences and potentially misappropriating funds [10][13]. - Reports indicate that she has multiple legal cases against her, suggesting a pattern of behavior that raises concerns about her management practices in the private equity industry [20][22].

Core Viewpoint - The recent report from the Shenzhen Securities Regulatory Bureau highlights the increasing prevalence of private equity funds engaging in activities unrelated to their core business, raising concerns about compliance and ethical standards in the industry [1][2]. Summary by Sections Violations Identified - The report identifies six typical violations among private equity fund managers, including selling pseudo-gold exchange products, providing consulting services, selling equity of investment target companies, assisting non-employees in obtaining fund practitioner qualifications, and conducting unrelated activities in office spaces [1][8]. Specific Cases - A private equity firm was found promoting a real estate company's receivables transfer plan through a pseudo-gold exchange, earning over 1.5 million yuan in consulting fees [3]. - Another firm signed multiple financing service agreements to help companies secure funding from outside channels, charging fees based on the financing amount [4]. - A firm managed two funds and acquired shares from a company’s controlling shareholder at zero cost, later selling them to third-party investors, profiting over 200,000 yuan [5][6]. - A firm assisted non-employees in obtaining fund practitioner qualifications, disrupting industry order by facilitating unauthorized registrations [7]. - Some firms operated in shared office spaces without proper identification, engaging in unrelated activities such as fortune-telling and paid knowledge services [8]. Industry Trends - The private equity industry is undergoing a rapid cleansing process, with 598 private fund managers deregistered as of June 24, 2024, including many well-known institutions [9][10]. - The number of private equity fund managers has decreased significantly, with 1,2083 registered as of 2024, down by 810 from 2023 [10]. - The industry is witnessing a survival of the fittest, as fundraising becomes critical for private equity and venture capital firms, with over 100 firms deregistered due to inactivity [11][12].