The next day, three Yimin companies launched an action.
An announcement stated that the Audit Committee has jointly conducted self-inspection with local well-known law firms in the United States and Deloitte Accounting Firm.
At the same time, it accused Muddy Waters of confusing the public. The so-called "evidence" is untenable and everything it does is to seek benefits for the short hedge funds behind it.
At the same time, three Yimin companies also clarified the acquisition of Zhongjiang Trust.
There are no related transactions, including bad debts left by former shareholders and management, and only investment companies composed of Yimin Group are responsible for recovering and there is no need to guarantee the bottom line.
Other issues such as "risk control engine technology is not up to standard" and "borrowers evade debts" have also been clarified one by one.
Muddy Waters will naturally not give up, and send another short-selling report.
This report was written by Muddy Waters, who personally visited borrowers and wrote a report in Southeast Asian countries such as Indonesia, Malaysia and China.
The report said that all borrowers believe that the interest rate on loans of several financial companies in Yimin is too high, and clearly stated that they will not repay these high-interest loans.
The total loans within the Yimin Group are worth hundreds of billions of yuan, and the bad debts are conservatively estimated to be less than 50 billion yuan.
Finally, it is also said that several companies in the Yimin Group are suspected of inflated revenue and profits.
Muddy Waters has produced a lot of evidence, and it looks quite like that.
This has scared some institutional investors in the US stock market.
Bad debt of RMB 50 billion!
With such a big hole, the market value of several Yimin companies is only over 5 billion US dollars, which is not enough to fill the hole.
A large number of selling orders were sold, which directly caused the stock prices of three US listed companies to collapse!
One after another, there were class action lawsuits jointly initiated by more than a dozen law firms.
In the eyes of the outside world, the three Yimin companies are like three small boats in the storm, and they are in danger of overturning at any time.
Investors with good relationships led by Shen Beipeng and Xu Xiaoming called to express their condolences and concern.
Institutional investors such as Goffee Assets, Morgan Stanley, Bank of America Merrill Lynch, etc., are currently more excited.
"Mr. Zhang, we have to fight back, fight back hard!"
Morgan Stanley has few shares in the Yimin Group, but there are still some benefits in it.
Evans just said he wanted to fight back, but didn't say what Morgan Stanley planned to do.
Zhang Yida almost understood what they meant, just to encourage himself to go up and fight, so that they could hide behind to pick up the fruits of victory.
I am really a veteran driver on Wall Street! I have money to make money together, but my teammates will take care of it when they are in trouble.
"Obviously, this is a malicious short selling!
But many institutional investors don’t know my companies, and they make a fuss if they make a little noise, which looks very similar to our big A-share small shares.
Let them work hard, and we will respond to changes in the same way as we remain unchanged.
When our transformation plan is successful, the stock price will naturally rise back.
Our vision should be long-term, and Mr. Buffett's value investment theory is very good."
Zhang Yida's words made Evans a little hesitant. What does this mean? Did he give up treatment like this? Shouldn't it?
Evans persuaded: "Mr. Zhang, if you let it go, the market will likely lose confidence and the stock price will continue to be sluggish for a long time.
At the same time, the company may face many troublesome lawsuits.
The most important thing is that our company has no problems at all! Should we let muddy waters bully?
The securities investment market emphasizes the prevalence of the weak. If we do this, we will definitely be regarded as the target of weakness and bullying, and more hungry wolves will pounce on it."
"The hungry wolf pounces on..."
Zhang Yida smiled and pounced on him, so that the meat would be fat enough.
Evans felt that everything he should say was almost the same, and it was his own business whether Zhang Yida would like to listen.
The market value of Yimin stocks held by Morgan Stanley is less than US$100 million, so he will not risk helping Zhang Yida stand out.
Because according to their understanding, some problems pointed out by Muddy Waters, such as the large number of Chinese borrowers evading debts, are real problems.
Zhang Yida himself knows the big pit within the Yimin System.
After Evans, Wang Jingbo also called.
She now doesn't expect to get away from the two pitfalls of Yimin.com and Yimindai. She chatted weakly for a few words and then hung up the phone.
Compared with these two old pits, Noah’s Wealth has stepped on a new pit.
Luo Jing, a strong woman who is even stronger than her.
In the "2018 Business Mulan China's Most Influential Business Women's Selection" held by Chinese entrepreneurs last year, Luo Jing beat Gree's "Iron Lady" Dong Mingzhu and the female leader He Qiaonu with a vote of 1.33%.
Luo Jing owns three listed companies, Hong Kong main board listed company Chengxing International Holdings, A-share listed company Boxin Co., Ltd., and Singapore main board listed company g Healthcare.
Simply put, Luo Jing took a share of accounts receivable between her and Goudong and borrowed 3.4 billion yuan of supply chain financing from Noah Wealth's Guffle Asset Management Company, with equity as a guarantee.
After Luo Jing was arrested at the end of last month, more situations in her company surfaced, and it is hard to describe it in words such as riddled with holes.
Goudong began to blame: Chengxing International is suspected of forging a supply chain financing business contract with Goudong, and the company has reported the case!
Noah Wealth directly sued Goudong and Chengxing International, and is currently waiting for the trial.
Dog Dong said he was innocent and directly disclosed Diss Noah's Wealth: During the process of being cheated, he did not verify the authenticity of the contract with Dog Dong through any means, which exposed his own significant compliance and risk control.
defect.
I hope Gefei faces up to its management problems and makes good efforts to improve his or her professionalism, instead of trying to shirk responsibility by confusing the public.
While fighting with Goudong, Wang Jingbo carried out various aftermath after the thunder.
The current market value of Chengxing International Holdings, which is pledged to Noah, is only about HK$454 million, which is approximately RMB 400 million, which is far from the financing amount of RMB 3.4 billion.
Noah's own stock price also plummeted from US$44.74 per share in the previous trading day to US$34.5, with the largest drop of 23%.
Investors are also making a big fuss and asking for an explanation.
Wang Jingbo issued an announcement letter to investors and explained: From a macro perspective, the economy has reached the end of the cycle.
When the economy is down, collateral is exhausted, and capital goods prices no longer rise, more and more storms will be stormed, and systemic risks will become greater and greater...
This may also be the fate that cannot resist in the financial industry!
As soon as these words were spoken, more people scolded her, and many customers asked for redemption of their investments.
This incident once again exposed Noah's unprofessionality. Many investors planned to invest in Yimin Wealth or Yimin Trust. That's what they meant to do, and they didn't treat their customers as fools.
Wang Jingbo is having a headache, while Zhang Yida is counting the hedge funds' achievements with Ding Siyao.
The market value of Chengxing Holdings evaporated by nearly 10 billion Hong Kong dollars, and they were ambushing and shorting in advance to make a profit of nearly 200 million US dollars.
Noah Wealth's market value evaporated by more than $600 million, and their hedge funds also made more than $50 million in profits.
The two were combined and they made $250 million!
Not a lot, but it’s easy, just like picking up money.
Ding Siyao was completely convinced now and said with a smile: "Mr. Zhang, your news is so impressive."
Zhang Yida smiled and said nothing.
"Do you have such a company that is financially fraudulent?"
Zhang Yida shook his head very hard, "No, you really think it's like a cabbage on the street!"
"Okay, now the appetizer is finished, it's time to close the door and beat the dog!"
Zhang Yida looked at the red stocks in the computer, and the corners of his mouth rose slightly.