Core Viewpoint - The news highlights the legal troubles faced by Tianfeng Securities, which is under investigation by the China Securities Regulatory Commission (CSRC) for allegedly providing illegal financing, raising concerns about potential liabilities linked to its former major shareholder, Dandai Group [1] Group 1: Key Individuals and Historical Context - The article brings attention to "Bond Queen" Zhai Chenxi, who previously led Xinhua Fund and played a significant role in Tianfeng Securities' growth [2] - Zhai Chenxi was appointed as the General Manager of Fixed Income at Tianfeng Securities in 2014 and later became Vice President, overseeing fixed income and international business [2] - Xinhua Fund experienced management upheaval and talent loss, with Zhai Chenxi resigning as chairman in March 2023, leading to concerns about the fund's research capabilities [2] Group 2: Fund Performance and Operations - Xinhua Rate Bond Fund E (Fund Code: 016295) was launched in August 2022, designed to cater to institutional investors with low fees and flexible redemption terms [4] - The fund's scale dramatically increased from approximately 1,700 yuan in March 2024 to about 40 million yuan by June 2024, marking a growth of over 24,400% [5] - The fund experienced significant fluctuations, including a notable redemption event on September 18, 2024, where its net value surged by 87.13% in a single day [5] Group 3: Controversial Practices and Industry Implications - The fund's rapid growth is attributed to high-frequency dividend distributions, which are perceived as a method for institutions to avoid taxes, raising ethical concerns within the industry [8][16] - The management of Xinhua Fund is under pressure to maintain growth amidst regulatory scrutiny, leading to controversial practices that may challenge the integrity of the financial industry [16] - The narrative suggests that while growth in fund size is desirable, it should not come at the expense of compliance and long-term sustainability [16]