On July 9, Xu Xiang, the former “Private Equity Brother”, was released after serving his sentence, triggering a sharp fluctuation in the stock price of “Xu Xiang Concept Stock”.
The so-called “Xu Xiang concept stock” refers to listed companies related to Xu Xiang, including Ningbo Zhongbai, Daheng Technology, Huali Family, Wenfeng Shares , and Kangqiang Electronics .
On July 9, Ningbo Zhongbai dropped 5.19% at the opening and closed at 11.50 yuan per share. The actual controller is Xu Xiang’s father, Xu Boliang.
As of July 9, Kangqiang Electronics closed at 17.72 yuan per share, an increase of 9.99%. It is worth noting that Kangqiang Electronics currently has no controlling shareholders and actual controllers.
Regarding Xu Xiang’s “Xu Xiang concept stock” change before and after his release from prison, people from the Huali Family Securities Affairs Department told the media that these were all hot money hype about “Xu Xiang concept”.
Who is Xu Xiang who makes hot money “await”? What did Xu Xiang go through from “Private Placement Brother” to being imprisoned?
01 The Prodigal Son of the Times
No. 19, Jiefang South Road, Ningbo, is the location of the business department of China Galaxy Securities .
In 2003, the China Securities Journal reported on the sales department of Galaxy Securities, stating that the group of four or five customers in the sales department was called the “Daily Limit Suicide Squad”, and Xu Xiang was the “master rudder” of the “Suicide Squad”.
According to reports, in 2002, the business department had a transaction volume of more than 9 billion, of which 60% was contributed by the “death squads”. As of December 31, 2002, Ningbo had 27 securities business departments and 7 securities service departments. In 2002, the total trading volume of equity funds was 69 billion yuan.
According to the statistics of China Securities Journal, from January 2, 2003 to February 14, 2003, in the list of information announcements publicly disclosed by the Shanghai and Shenzhen Stock Exchanges, the “death squad” was listed on the list 18 times in 11 days and operated stocks. There are 17 of them, and the accumulated daily limit funds on the list have reached 150 million yuan.
The China Securities Journal stated that a reasonable explanation can only be that the “death squads” are constantly playing short-term. People familiar with the matter said that the “death squads” often see a stock with a strong short-term momentum from the market, and it is expected to form an upward breakthrough, and then decisively intervene. But once it intervenes, it will be very fast and fierce, using the short-squeeze technique to throw all the big and small and take it all. Because the stocks selected by them have already gone well in the previous form and technical indicators, the funds are often not huge and the daily limit can be easily blocked.
“Quick, accurate and ruthless” is Xu Xiang’s standard play for leading the “death squad” in short-term trading. Among them, Xu Xiang’s fame is nothing more than the Chongqing Beer War.
Chongqing Beer, established in 1958, landed on the main board of the Shanghai Stock Exchange in October 1997, its main business selling beer; in December 1998, this brewer rarely acquired Jiachen Bioengineering, and has since intervened in the hepatitis B vaccine project that is regarded as a world problem. .
On August 18, 2009, a brokerage research report titled “Chongqing Beer: Oranges Are About to Red” was released, which directly pointed to Chongqing Beer’s hepatitis B vaccine project; in June 2010, Chongqing Beer suddenly began to release vaccine research progress. On November 25, 2011, Chongqing Beer hit a record high of 78.32 yuan per share.
On December 7, 2011, Chongqing Beer announced that the hepatitis B project that has been involved for more than 10 years has been evaluated by clinical trials as having no significant effect. On December 8, 2011, Chongqing Beer resumed its share price avalanche; on January 19, 2012, Chongqing Beer closed at 15.36 yuan per share, a record low, and nearly 30 billion in market value evaporated.
During this period, Xu Xiang smelled the “smell of blood” from Chongqing Beer.
On December 21, 2011, after Chongqing Beer’s market closed, the Dragon and Tiger List showed that Zexi Investment, a subsidiary of Xu Xiang, bought 128.84 million yuan with the seat of Guotai Junan Shanghai Dapu Road. On January 10, 2012, Chongqing Beer’s stocks were closed at the opening limit, and Xu Xiang’s Guotai Junan Shanghai Dapu Road seat was on the Dragon and Tiger list again, selling 101.12 million yuan at the limit price.
In World War I Chongqing Beer, Xu Xiang left the market with a loss of 10%. At that time, “Xu Xiang’s departure” and “Private Equity Brother Was Hacked” became big news in the Shanghai financial circle, and investors were in an uproar. However, no one expected that Xu Xiang would throw a carbine back at Chongqing Beer.
On January 19, 2012, Xu Xiang directed Zexi to invest in increasing positions. At this time, Chongqing Beer’s share price had fallen to about 20 yuan per share, but Zexi Investment reinvested 500 million yuan at an average price of 20-22 yuan. The proportion of shares in Chongqing Beer reached 4.99%. In February 2012, Chongqing Beer’s stock price rebounded, Xu Xiang quickly left the market at an average price of about 30 yuan, making a profit of more than 200 million, and a floating profit of 50%.
It is reported that Xu Xiang recalled afterwards that the two-in-two-out of Chongqing Beer said that the researchers of public funds got together to study Chongqing Beer. “However, they only study the investment value of individual stocks and will not ponder the market’s trading psychology and trading logic.” .
However, Xu Xiang’s “speculation” in the market trading psychology of Xu Xiang also paved the way for his future imprisonment.
02 Slave of Money
Xu Xiang was born in a relatively wealthy family in 1977. His father Xu Boliang was a retired worker-turned taxi driver, and his mother Zheng Suzhen was a housewife.
In 1993, Xu Xiang took 30,000 yuan from his parents to join the stock market.
From 1993 to 2005, Xu Xiang emerged in the sales department of Ningbo China Galaxy Securities. As of 1997, Xu Xiang had turned the original 30,000 yuan into 3 million yuan.
In 2005, Xu Xiang moved the “death squad” base to Shanghai, the “magic capital”, which is closer to the center of the stock market storm.
In December 2009, Xu Xiang, who was no longer satisfied with petty troubles, established Shanghai Zexi Investment Management Co., Ltd. (“Zexi Investment” for short), a sunshine private equity company whose products are mainly stock trusts.
On March 5, 2010, Xu Xiang’s first private equity product, Zexi Ruijin No. 1, was established, with an initial scale of 1 billion yuan. Most of the funds were Xu Xiang’s original accumulation in the past ten years, and its scale far exceeded that of the market at that time. Private Equity.
After the establishment of Zexi Ruijin No. 1, the Shanghai and Shenzhen 300 Index fell 15% during the same period. However, this product got a 25.47% return 3 months before its establishment. Roughly calculated on the scale of 1 billion yuan, the income of 250 million yuan is recorded, and market participants regard it as a miracle in the sunshine private equity industry.
Since then, Zexi Investment has issued four more products in a row. As of the end of 2012, the capital scale of Zexi Investment Management exceeded 10 billion yuan; as of September 2015, its scale was close to 20 billion yuan. It is worth noting that Zexi Investment’s products are almost not open to the outside world through conventional sales channels. Investors must rely on various relationships to obtain fund shares issued by Zexi Investment.
From 2011 to 2014, among the 491 private equity funds with continuous performance records, the products of Zexi Investment took the top three, namely “Zexi Phase 3”, “Zexi No. 1” and “Zexi No. 5”. According to the private equity research institution Geshang Finance, in the top list of China Sunshine Private Equity Funds in the first three quarters of 2015, Zexi Investment ranked first in the stock-type Sunshine Private Equity with an average yield of 217.54%, far exceeding the second place with a yield of 94.43%. .
When asked how to achieve such an amazing performance, Xu Xiang said, “There is a relatively mature research team, more than 30 researchers, covering multiple industries.” “My investment decision mainly depends on their research results.” In addition, Zexi Investment’s assessment method for researchers is mainly that the recommended stocks should be able to rise, it is best for the horse to rise, the rise should be higher than the Shanghai and Shenzhen 300 index, and the fall cannot exceed 10% after buying.
However, Xu Xiang, who raised Zexi’s investment to the private equity world, can be regarded as an ascetic in the stock market compared to many other investors who care about football, celebrities, travel, and golf.
In the article “Seven Lessons I Learned in Zexi”, Ye Zhan, the assistant general manager of Yuan Zexi Investment, stated that Xu Xiang starts the morning meeting at Zexi Investment every morning. Each researcher reports market information and company conditions, and enters after the market opens. In the trading room, the trading hours will never leave the market; at noon, we usually have lunch with the seller’s researcher and continue trading in the afternoon. After the market closes, there will be one or two roadshows, that is, the evening resumption and stock research.
Xu Xiang studies the stock market for more than 12 hours a day and has almost no entertainment or other hobbies. Ye Zhan said that these habits of Xu Xiang have lasted for more than 20 years.
According to this, it seems that Xu Xiang’s only pleasure is to use the stock market to make money, even if he is already rich.
It can be seen that there are two types of groups in sharp contrast in the stock market. One is the “regular army” represented by public funds, who focus on investment to obtain long-term returns; the other is the “death squad” represented by Xu Xiang. Like short-term trading, use information asymmetry, capital scale, and first mover advantage to quickly grab wealth.
Xu Xiang is good at pondering and manipulating the public’s psychology. He made huge profits in the stock market in a short period of time and became a star under the flashlight and a powerful figure respected by thousands of people . However, always remember that risks and benefits are equal.
In 2015, a prison storm was waiting for Xu Xiang at the end.
On November 1, 2015, Xu Xiang was taken away by the judicial department from the Hangzhou Bay Bridge in Ningbo.
In November 2016, the Qingdao Municipal People’s Procuratorate filed a public prosecution, and Xu Xiang was the defendant.
On January 23, 2017, Xu Xiang was sentenced to five years and six months in prison and fined.
On March 20, 2017, the China Securities Investment Fund Industry Association released a list of private equity cancellations. Xu Xiang’s Shanghai Zexi Investment Management Co., Ltd. was listed impressively. To a certain extent, this means that Xu Xiang and Zexi Investment The official end of the era.
On June 7, 2017, the China Fund Industry Association issued a disciplinary decision on its WeChat official account, in which it disclosed the relevant facts and details of the Xu Xiang case to the market.
First, Xu Xiang asked relatives and friends Zheng Suzhen, Zexi Investment employees, and employees’ relatives and friends to open securities accounts and inject their own funds to conduct securities transactions or require others to conduct securities transactions in accordance with his instructions. After investigation, Xu Xiang actually controlled 139 stock trading accounts, 76 involving natural persons, and 1 partnership.
Furthermore, from 2010 to 2015, Xu Xiang, alone or in collaboration with others, successively conspired with the chairman or actual controllers of 13 listed companies to manipulate the stock transactions of the aforementioned companies.
Among them, Xu Xiang and the chairman or actual controllers of 11 listed companies chose the opportunity to release good news such as “high delivery” and “pre-increasing performance”, and introduced “hepatitis B therapeutic vaccine”, ” graphene ” and “mobile phone”. “Games”, “Online Education”, “Robots”, “PPP”, “Listed Companies + PE”, “Zexi Products Raising Brands” and other hot topics.
Based on the above information advantages, Xu Xiang used Zexi products and the securities accounts controlled by them to conduct continuous trading of the above-mentioned listed company stocks in the secondary market to increase the stock price. After the stock price rose, Xu Xiang used Zexi’s products and the securities account under his control to take over the shares that the shareholders of the above-mentioned company had reduced by way of block trading, and then all sold them in the secondary market. The selling process was accompanied by a large number of bidding and buying behaviors. . Shareholders of 11 listed companies divided the part of block trades that exceeded the agreed reserve price into five to five or four to six shares with Xu Xiang and others according to the agreed ratio, and remitted them to the account designated by Xu Xiang and others. After Xu Xiang and others received the share, they destroyed the agreement signed by both parties.
At the same time, Xu Xiang and the two listed company stock transactions were manipulated. After using Zexi products or in the name of another person and the actual controller of the listed company (in the name of another person) to jointly subscribe for privately issued shares, the actual controller of the listed company is responsible for controlling the listed company Select the opportunity to release good news such as “High Delivery and Transfer”, and introduce hot topics such as “Film and Television Culture” and “Internet Finance”. Based on information advantages, Xu Xiang uses Zexi products and securities accounts under his control to conduct continuous trading of the above-mentioned company’s stocks in the secondary market to increase the stock price and sell privately-issued stocks for profit or realize stock appreciation.
In summary, as of August 18, 2015, Xu Xiang and others had actually made 9.338 billion yuan in illegal profits, and Xu Xiang and others held 144 million shares of Dongfang Jinyu private placement.
As of July 9, 2077 days have passed. Xu Xiang’s wife Ying Ying told the media that “family members have received Xu Xiang”.
It is worth mentioning that Xu Xiang once pointed to the “Oriental Soros” little bronze man sent by a friend and said, “My ideal is to one day confront Soros!”
However, gamblers all worship the God of Gamblers, even if the God of Gamblers is dedicated to the elderly. So, what kind of storm will this private equity giant after being released from prison set off in the arena? Investors will wait and see!
(This article is for reference only, does not constitute investment advice, and operates at your own risk accordingly)
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