The core business of Zhongzhi Department: Cheng Ye Xiao How to defeat Xiao He He? | Wealth Management
Text/Wang Mao, senior editor of Tsinghua Financial Review
Zhongzhi mainly does three types of business: first, lending money to government investment platforms, that is, urban investment companies to do infrastructure projects; the second is to invest in real estate; The third is to invest in listed companies. Cheng Ye Xiao He He He is also Xiao He, the main business composition of the Zhongzhi Department, which has achieved its "hegemony" in the past, and now pulls it into the swamp of risk.
About a week ago, there was some negative news about trusts in the market, which caused a thousand waves with one stone, and some financial practitioners forwarded it. Could it be that after the middle plant system, there are still some big thunderstorms?
Soon, some well-known trust companies named came out to refute the rumors and said that they would take legal action. Why did a remark set off such a terrifying wave? The reason is not unrelated to the thunderstorm of the Zhongzhi system and the market's "trembling" of the trust industry.
Let's sort out the basic situation of the mesophyte and its thunderstorm.
What kind of institution is the Chinese phytophyte?
Zhongzhi is a Zhongzhi enterprise group and a shareholding platform. Specifically, Zhongzhi controls eight listed companies and two mineral groups. The thunderstorm involved 4 wealth management companies and 5 asset management companies. The 4 wealth management companies refer to Hengtian, Xinhu, Datang and Gaosheng, and the 5 asset management companies refer to Zhonghai Shengrong, Zhongzhi International, Zhongxin Sunac, Zhongzhi Capital and Shoutuo Rongsheng.
In addition, there are 6 licensed financial institutions under the leadership of Zhongzhi Department: Zhongrong Trust, Zhongrong Fund, Hengqin Life, Hengbang Property Insurance, Zhongrong Huixin Futures and Zhongrun Financial.
Zhongzhi is such a financial giant, and the combined assets of all enterprises have exceeded 3.72 trillion yuan, far exceeding the debt level of Evergrande Group (Evergrande's liabilities have exceeded assets and are insolvent). Evergrande's 2022 financial report shows that its total debt has exceeded 2.43 trillion yuan.
What is the situation of this thunderstorm in the Chinese plant system?
The origin of the mesophytic crisis can be traced back to the end of 2021. On December 18, 2021, Xie Zhikun, the founder of Zhongzhi and soul hub, passed away, and his partner Mao Amin did not inherit his inheritance and did not intervene in the company's operations. Throughout 2022, there will be a lot of negative news from Zhongzhi, and its Zhongrong Trust has frequently stepped on thunder real estate, and the operating performance and market value of listed companies controlled or participated in by Zhongzhi are also unsatisfactory.
In July and August 2023, the four wealth management companies of Zhongzhi were overdue and suspended payment, which may indicate that there is a problem with the 100 billion fund pool of Zhongzhi. It is not appropriate to say that the Chinese plant has officially exploded, but the crisis of trust caused by the risk signal has begun.
The amount involved in the thunderstorm is 230 billion yuan, not that the products involved in Zhongzhi are violent. The thunder that exploded this time is related to fixed melting products. Fixed financing is a pool of funds for non-standard directional financing. Non-standard means that only qualified investors must be eligible to buy, are a single investor investment amount of more than 3 million, the largest sum of 5 billion, of course, there may be several people to invest together, one of them holding the phenomenon.
A fixed financing product, with a high yield of 8% to attract customers, plus operating costs, commissions, may need to earn more than 15%, this product can return the cost. In the past, when the economy was booming, real estate was booming, and the stock market was booming, it was possible, but in the past three years, everyone knows what the situation is, how can such a high return be obtained? It can only be by sending the new to return the old, the new can not be issued, the old cannot be made up, the more you accumulate, the thunder will inevitably burst.
What happens next? Nobody is clear. The Department of Zhongzhi issued a report that the specific audit cycle should refer to Evergrande, because the two mines are similar in nature and are self-melting. The difference is that Evergrande has more than 2 trillion thunder and 1.9 trillion land assets. Zhongzhi is different, all financial products.
The core "business" of the Chinese plant system is constituted
Chengye Xiao Xiao also Xiao He is also Xiao He, the main business composition of Zhongzhi has achieved its "hegemony" in the past, and now it is pulled into the swamp of risk.
The Chinese plant system mainly does 3 types of business:
The first is to lend money to government investment platforms, that is, urban investment companies to do infrastructure projects; the second is to invest in real estate; The third is to invest in listed companies.
This kind of business model, in the past, did eat openly, but now it is "unable to move". Time has changed, and now that the real estate downturn, the extension of local debt, and the implementation of the registration system of listed companies, it is difficult for Zhongzhi's business model to generate revenue. In addition, the plates are spread too large, and it is difficult to move and adjust on their own.
What happens next? We can only wait for the results of the audit.
For ordinary investors, it must be unlikely to directly or indirectly invest in urban investment and real estate at present, and the stock market is estimated to be involved, if you choose the stock market, there are two perspectives to refer to.
The first is to choose a company with "high cash flow, high dividends, and low valuation", and the second is to choose a company with high-tech content, which need to do your homework in advance and start when the price is appropriate.