On January 22, the Qingdao Intermediate People’s Court found Xu Xiang and others guilty of manipulating the securities market in the first instance. Xu Xiang was sentenced to five years and six months in prison and was also fined. Xu Xiang and others obeyed the judgment and did not appeal, and the judgment has taken effect. Three people including Xu Xiang and related institutions were added to the blacklist and publicly condemned, and the fund qualifications obtained by Xu Xiang and Zheng Suzhen through certification were cancelled. After being added to the blacklist, relevant institutions are not allowed to re-register, and relevant personnel are not allowed to practice in the fund industry.
The association stated that Xu Xiang, as a private equity fund practitioner, has been reduced from a "private equity star" to a "prisoner", which has damaged the reputation of the industry and disrupted the order of the industry. The lesson is profound and the entire industry should reflect deeply. learn a lesson. First, strictly abide by laws, regulations and self-discipline rules. Xu Xiang and others comprehensively broke through the bottom line of laws, regulations and self-discipline rules in terms of registration and filing, internal management, personnel qualifications, information reporting and capital operations. Their lack of compliance awareness and ineffective risk control led them to eventually embark on a criminal path. The second is to adhere to the principle of putting investors’ interests first. Trust is the foundation of the fund industry.
Xu Xiang and others used fund assets to make profits for themselves and others, and implemented benefit transfers. Not only did they personally lose the lawsuit, but they also jeopardized investors' trust in the fund industry. Third, it is strictly prohibited to use fund property to engage in illegal and criminal activities. Fund investment activities must not be for the purpose of profit-making, exceeding or even trampling on the law. The fund industry must always respect the law and always bear in mind that those who challenge the law will inevitably be punished, and ill-gotten gains will eventually face recovery. The fourth is to resolutely resist illegal activities. Fund managers must not only keep themselves clean, but also fight against violations of laws and regulations in the industry. Fund custodians, fund sales agencies, accounting firms, law firms and other fund service institutions must also perform their respective duties, play the role of industry supervision, and promptly discover and stop illegal activities.
The association requires that the entire industry should draw inferences from one example, comprehensively enhance awareness of legal compliance, be loyal to fiduciary responsibilities, firmly adhere to the bottom line of practice, resolutely resist and expose bad industry practices and violations of laws and disciplines, and create a "compliance wins" The industry order in which "violators and violators are eliminated" has made the fund industry a trustworthy and reliable main investment channel for investors. The main investment channel truly promotes the healthy development of the fund industry.