In the notice, the CSRC described the business as follows: "First, set up an affiliated company as a qualified investor to buy private equity products, and then split and transfer the income right of private equity products to registered users of the platform through the trading platform."
Take lufax as an example, its cash management product "Zero Shengbao" is a private placement product that uses an affiliated company-Shenzhen Jusheng Asset Management Co., Ltd. (hereinafter referred to as Jusheng Assets) as the trustee to raise investors' funds to invest in the asset management plan in the name of "directed entrustment". In this mode, the investment threshold of the income right of the asset management plan is reduced to 1 yuan, and the number of investors exceeds the limit of private placement products.
Coincidentally, your wealth's "Little stooges", "Little Dingbao" and other products also sell the income right of the asset management plan in the name of "directed entrustment" through its affiliated company Shenzhen Qianhai Woods Financial Information Service Co., Ltd. (hereinafter referred to as Qianhai Woods).
As identified by the CSRC, there are three irregularities in this kind of business: first, it breaks through the investment threshold requirement of 1 10,000 private placement products and conducts private placement business to unqualified investors; The second is to transfer private placement products to an uncertain number of individual investors, resulting in more than 200 investors in a single private placement product; Third, illegally transfer the share of the asset management plan through the trading platform approved by the CSRC.