On December 17, 2023, Haiyin Wealth released an announcement through its official microblogging site, saying, “Recently, due to the impact of the economic downturn, the project has been delayed, and we apologize for the inconvenience caused to investors! According to the latest regulatory policies and industry guidance, Haiyin Wealth takes the initiative to withdraw and sort out the surviving business, and the relevant program will be given to you before the end of the month, and I hope that you do not believe in rumors and do not spread rumors.” Under the current economic environment of recession, the on-schedule payment of various capital management products is facing a major test, and defaults continue to occur.
Beijing King&Capital Law Firm received all kinds of investors of defaulted products, and the defaulted products of Haiyin Wealth are mainly: “fixed income”, “supply chain finance”, “private equity funds” and so on. The amount held by individual investors ranges from 5 million to about 100 million.
Recently, Ms. Li Jing and Ms. Wang Li of King&Capital successfully represented the case of “default of Haiyin system fixed-income management products”, in which the investor held the debt-income rights project issued by XX company, with Haiyin system company acting as the manager and underwriter, and the debt-income rights project listed and registered in XX Asset Service Co. The mode of jurisdiction is litigation. After the lawyer's representation, the lawyer quickly collected the investors' product contracts, subscription amount confirmations, subscription fund bank payment certificates and XX Asset Service Co., Ltd.'s qualification of financial asset trading service, and completed the preparation of civil indictment and preservation materials within two days, and submitted the application for litigation and the application for property preservation to XX People's Court.
As defaults of custody products continue to occur, liability disputes of custody products will become the focus of commercial arbitration and litigation in the future, and in addition to agreed arbitration, the principle of centralized jurisdiction similar to that of the “Evergrande” case will not be ruled out by the court.
At present, the defaulted products are all “capital pool” products of various organizations, which are the managers who continuously raise funds by issuing rolling financial products for sale, and form a “capital pool” with the funds raised from multiple financial products of different types and durations, as well as Financial products that operate on multiple project assets in a pool, without one-to-one corresponding underlying assets, originally relying on the investment principal of subsequent investors to redeem the principal and income of previous investors, and once there is a default, no one will invest in the follow-up, and the existing investors will not be able to recover the principal and income. And this kind of capital pool products, through litigation and arbitration, but can pursue product managers, issuers of responsibility, by the product managers, issuers of investors' principal and income liability, will be an investment income right into a claim.
King&Capital lawyers suggest that investors encounter financial product default, should be as soon as possible to arbitration or litigation, through litigation or arbitration to confirm the right, the investor will hold the right to the proceeds of financial products into the issuer, the manager of the claim. Because the right to the proceeds of financial products is an uncertain right, the proceeds come from the profitability of the underlying assets, if the underlying assets lose, the principal and proceeds of the financial products will also lose.
