Core Viewpoint - Zhejiang Zhejin Asset Operation Co., Ltd. and its actual controller Yu Faxiang are under criminal investigation by the Shaoxing Public Security Bureau, raising concerns about the financial products linked to the company and its affiliates [1][5][6]. Group 1: Criminal Investigation and Measures - Chairman Ding Jianlin of Zhejin Center has been criminally detained since December 12, 2023, along with 18 other individuals related to the case [1][5][6]. - A provincial task force has been established, involving key departments such as the Zhejiang Provincial Financial Office and the Public Security Bureau, to handle asset disposal and criminal investigation [6]. - Judicial measures include freezing 6.12 billion shares of Xiangyuan Cultural Tourism and 2.9 billion shares of Jiaojian Co., along with controlling assets worth approximately 89.37 million yuan [6]. Group 2: Financial Products and Impact - Since November 28, 2023, multiple financial asset income products issued by Zhejin Center have faced maturity issues, with over 200 products involved and a total transaction scale exceeding 10 billion yuan [3]. - The underlying assets of these products are linked to receivables from various real estate projects under the Xiangyuan Group [3]. Group 3: Company Operations and Governance - Jiaojian Co. announced that it has not received any requests for investigation from authorities and that its operations remain normal despite the ongoing situation [3]. - Yu Honghua, a board member related to Yu Faxiang, has resigned from her position for personal reasons, which may indicate potential governance challenges within the company [4].

Core Viewpoint - Zhejiang Zhejin Asset Operation Co., Ltd. and its actual controller, Yu Faxiang, are under criminal investigation by the Shaoxing Public Security Bureau, raising concerns about the financial products linked to the company and its affiliates [1][5][6]. Group 1: Criminal Investigation and Measures - Chairman Ding Jianlin of Zhejin Center has been criminally detained since December 12, 2023, along with 18 other individuals related to the case [1][5][6]. - A provincial task force has been established, involving key departments such as the Zhejiang Provincial Financial Office and the Public Security Bureau, to handle the investigation and asset disposal [6]. - Specific judicial measures include freezing 6.12 billion shares of Xiangyuan Culture and 2.9 billion shares of Jiaojian Co., along with controlling assets worth approximately 89.37 million yuan [6]. Group 2: Financial Products and Impact - Since November 28, 2023, multiple financial products issued by Xiangyuan Holdings have faced maturity issues, with over 200 products involved and a total transaction scale exceeding 10 billion yuan [3]. - The underlying assets of these products are primarily receivables from various real estate projects associated with the Xiangyuan Group, with expected annual returns of 4% to 5% [3]. Group 3: Company Responses and Governance - Xiangyuan Culture and Jiaojian Co. have received regulatory letters requiring clarification on information disclosure related to the ongoing investigation [4]. - Jiaojian Co. announced that its control has not changed and that operations remain normal, despite the ongoing investigation [3][4]. - Board member Yu Honghua has resigned from her position at Jiaojian Co. due to personal reasons, and she is related to Yu Faxiang [4].

Group 1 - Zhejiang Zhejin Asset Operation Co., Ltd. (formerly Zhejiang Financial Asset Trading Center Co., Ltd.) Chairman Ding Jianlin has been criminally detained by Shaoxing Public Security Bureau since December 12 [1] - The actual controller of Xiangyuan Group, Yu Faxiang, has also been criminally detained, with the investigation ongoing [1] - Xiangyuan Group's financial products have faced default issues, with over 200 products involved and a total transaction scale exceeding 10 billion [2] Group 2 - Xiangyuan Group's financial products, with expected annualized returns of 4%-5%, are linked to receivables from various real estate projects [2] - As of December 22, 2022, the company has not received any requests from authorities for cooperation in investigations, and its control remains unchanged [2] - The resignation of board member Yu Honghua has been announced, who is related to Yu Faxiang [3] Group 3 - Regulatory work letters have been issued to Xiangyuan Cultural Tourism and other companies, requiring clarification on information disclosure [4] - A total of 18 individuals, including Ding Jianlin and Yu Faxiang, have been criminally detained for serious crimes [5] - Judicial measures include freezing shares of Xiangyuan Cultural Tourism (6.12 billion shares) and Jiangjian Shares (2.9 billion shares), along with freezing properties and accounts totaling approximately 89.37 million [5] Group 4 - The legal representative of Zhejin Center was changed from Ding Jianlin to Ding Jianlin in January, but they are the same person [6] - Local police have begun contacting investors for reporting and documentation related to the case [6]

Core Viewpoint - The "Xiangyuan System" is facing significant financial distress, leading to a sharp decline in the stock prices of its three listed companies, resulting in a market value loss of approximately 3.2 billion yuan over two trading days [1][2][3]. Group 1: Stock Performance and Market Impact - On December 9, Xiangyuan Cultural Tourism (600576.SH) fell by 7.51%, Haichang Ocean Park (02255.HK) dropped by 12%, and Jiaojian Co. (603815.SH) hit the daily limit down [1]. - The cumulative market value loss for the three companies over two trading days reached 3.2 billion yuan [2]. - Jiaojian Co. reported a market value of 60.53 billion yuan as of December 9, down 1.42 billion yuan from December 7 [2]. - Xiangyuan Cultural Tourism's stock price fell by 20.67% from December 4 to 9, with a market value of 62.32 billion yuan, down 759 million yuan from December 7 [3][4]. - Haichang Ocean Park's stock price dropped 36.23% from December 4 to 9, with a market value decrease of approximately 1.057 billion yuan [4]. Group 2: Financial Products and Default Issues - The rumors of the "Xiangyuan System" default began in late November, with reports of overdue products surfacing around December 4 [2]. - The financial products in question were traded on the Zhejiang Financial Asset Trading Center, with a total trading scale exceeding 10 billion yuan [4]. - On December 8, a meeting occurred between representatives from the Zhejiang provincial government and investors, where it was revealed that the company had a funding chain break and real estate assets valued over 30 billion yuan that are difficult to liquidate [4]. Group 3: Asset Holdings and Financial Health - As of the end of Q3, Xiangyuan Holdings held 274 million shares of Jiaojian Co., with a market value of approximately 442 million yuan for the unpledged shares [6]. - Yu Faxiang directly held 15.73 million shares of Jiaojian Co., valued at around 154 million yuan [6]. - Xiangyuan Holdings has total assets of 599.78 billion yuan and equity of 215.90 billion yuan as of the end of 2024, with a net profit of 57.5 million yuan [8].

Core Viewpoint - The trust in "Zhejiang Financial Asset Trading Center" (now "Zhejiang Zhejin Asset Operation Co., Ltd.") has collapsed after the "Xiangyuan System" products faced a crisis, leading investors to realize the risks associated with their investments [1][8]. Group 1: Company Background - Zhejiang Zhejin Asset Operation Co., Ltd. was established in December 2013 and initially had a strong state-owned background, which attracted investors due to perceived stability and government support [8]. - The company has undergone significant changes, with state-owned shareholders withdrawing and private enterprises, such as Hangzhou Minzhi Investment Management Co., becoming the largest shareholder [8][10]. Group 2: Investor Experience - Many investors, including those who invested millions, believed in the stability of the platform due to its state-owned background and were unaware that most products were from the "Xiangyuan System" [2][4]. - Investors reported that the expected annual returns for "Xiangyuan System" products ranged from 4.4% to 5.1%, with some products already overdue for payment [3][4]. Group 3: Product and Risk Awareness - The majority of products on the platform are linked to the "Xiangyuan System," with over 90% of the products being from this source, amounting to a trading scale exceeding 12 billion yuan [11]. - Investors expressed a sense of being in a "boiling frog" situation, where they did not notice the gradual changes in the company's operations and ownership structure, leading to a lack of awareness regarding the risks involved [3][4].

Core Viewpoint - The trust in "Zhejiang Financial Asset Trading Center" has collapsed after the "Xiangyuan System" products faced a crisis, leading investors to realize that their long-held belief in the stability and security of the platform was misplaced [1][2]. Group 1: Company Background - "Zhejiang Financial Asset Trading Center" was established in December 2013 and was initially backed by state-owned enterprises, providing a platform for the trading of various financial assets [8]. - The company has undergone significant changes, with state-owned shareholders withdrawing and private enterprises, such as Hangzhou Minzhi Investment Management Co., becoming the largest shareholder [8][10]. - As of December 2024, the company was renamed "Zhejiang Zhejin Asset Operation Co., Ltd." and experienced changes in its legal representative and management [10]. Group 2: Investor Experience - Investors believed in the platform's stability due to its state-owned background, with many investing significant amounts, such as 4.2 million yuan and 6 million yuan, in "Xiangyuan System" products with expected annual returns between 4.4% and 5.1% [3][4]. - Many investors were unaware that the products they purchased were from the "Xiangyuan System" and felt a false sense of security due to the platform's long-standing reputation [2][4]. - The crisis was first noticed when products failed to pay out after their maturity dates, leading to a realization of the underlying issues with the platform [5]. Group 3: Product and Financial Details - Over 90% of the products on the platform were from the "Xiangyuan System," with a total trading scale exceeding 12 billion yuan as of December 8, 2023 [11]. - The products were initially marketed as secure investments tied to government projects, which contributed to the investors' trust [3][4]. - The financial products offered were designed to be transferable, allowing investors to sell their holdings, although this became problematic as the crisis unfolded [7].