One is that Yimin Financial Management, which has a principal and interest receivable of RMB 61 billion, and Ruimin Financial Management, which has a principal and interest receivable of RMB 24 billion, announced their withdrawal from the P2P industry.
He also wrote a very affectionate "Letter to the Client":
From 2013 to 2019, six years, thank you to the 100 million registered users for their companionship along the way.
We have matched more than 300 billion yuan in capital transactions and helped users earn more than 22 billion yuan in income...
In response to regulatory calls, we decided to withdraw from the P2P industry.
The principal and interest of all investors will be paid before July 30, 2019.
In the future, Yimin Wangjin will transform into a consumer finance company and continue to provide users with high-quality services.
…
As soon as this article came out, P2P investors were most affected, especially investors who were unfaithful.
Everyone is envious of the good luck of investors in Yimin Financial Management and Ruimin Financial Management. After investing for so many years, they have not only made a lot of profits, but also got their principal back safely.
Investors in the two Yimin platforms are very reluctant to part with them. Without these two platforms, where will their funds go?
I don’t have enough funds to buy a house, and there are purchase restrictions;
If you buy Yu'e Bao, the income will not be able to outpace inflation;
When trading stocks, I am afraid of encountering the Scallop Games.
One after another, investors received their investment funds paid in advance. After withdrawing cash, they did not forget to take a screenshot of the account-cumulative income page and post it on social media such as Moments and Weibo.
…
Another piece of news is that a joint venture led by Yimin Online Finance, Yimin Wealth, Yimin Dai, and Ruixin Group has received approval from the Beijing Banking and Insurance Regulatory Bureau and plans to establish a "Yimin Consumer Finance" company.
The approval shows that the registered capital of Yimin Consumer Finance Company is 5 billion yuan.
The ownership structure is that Yimin Wangjin holds 30% of the shares, Yimin Dai holds 28%, Yimin Wealth holds 27%, and Ruixin Group holds 15%.
As the main initiator, Yimin Wangjin needs to meet a number of conditions.
Others such as: more than 5 years of experience in the field of consumer finance, continuous profits in the last 2 fiscal years, no major violations of laws and regulations in the last 2 years... etc. are all in line.
Only, the total assets are less than 60 billion.
But Zhang Yida used some tricks, and Yimin Wangjin's total assets expanded to 60 billion.
…
Yimin Wangjin issued 30% additional shares to Yanhuang Investment based on the average stock price of the last 20 trading days, raising approximately US$800 million in funds.
At the same time, he obtained a loan of RMB 10 billion from a syndicate headed by the Industrial and Commercial Bank of China and bought an office building worth RMB 5 billion in Beijing.
After such a deal, Yimin Wangjin's net assets did not increase much, but its total assets increased significantly, breaking through the 60 billion yuan mark in one fell swoop.
All the problems that restricted Yimin Wangjin from obtaining a consumer finance license have also been resolved.
The Beijing City Banking and Insurance Regulatory Bureau saw that Zhang Yida had done a good job in this matter. He spent 85 billion to buy out the P2P debt in one go and transferred all risks to Zhang Yida's Yanhuang Investment.
Therefore, the establishment of Yimin Consumer Finance Company was happily approved.
From a certain level, Yimin Wangjin finally has an identity and will not be suddenly liquidated.
…
The stock prices of the three Yimin companies have been fluctuating recently, and the bulls and the shorts are fighting.
Killing, Yimin Wangjin announced its withdrawal from P2P, and Yanhuang invested 85 billion to buy out all P2P debt.
Regardless of whether the large-scale bad debts blamed by Muddy Waters actually exist or not, it has nothing to do with Yimin Wangjin.
In addition, the fact that three consumer finance companies under the Yimin Group are planning to go public is also good news.
Yimin Wangjin’s issuance of 30% more shares is also good news.
Three pieces of good news were released one after another, and the stock prices of the three listed companies of Yimin Group began to rebound.
In particular, Yimin Wangjin has rebounded the most, directly rebounding from US$8.2 per share to over US$20 per share, an increase of more than 150%, and its market value is approaching US$7 billion.
Investment banks such as Goldman Sachs and Morgan Stanley also jumped out at this time and gave them buy ratings.
Carson Bullock, the founder of Muddy Waters, finally realized that something was wrong, and reluctantly began to buy back the shares of Yimin Group, preparing to close his position.
There are not many circulating shares on the market, and short-selling orders have further pushed the stock price soaring.
However, some small institutions that participated in short selling, the kind that added leverage, had insufficient margins, and immediately began to liquidate their positions, and were liquidated by the institutions that lent the stocks.
The stock price of Yimin Wangjin began to exceed US$30, US$40... soaring!
Short sellers are eager to close their positions and trample on each other, spreading panic further.
…
"Mr. Zhang, it's almost time. Should we close the net?"
Ding Siyao walked into Zhang Yida's office with a happy face.
Muddy Waters and the short sellers behind it were beaten very badly this time. I don’t know what they were thinking. They really thought that Asia’s richest man was living in vain.
"Well, look how pitiful they are. Sell some shares to them to close their positions!"
Zhang Yida felt that the heat was almost there, and the stock price had doubled or tripled compared to before the short selling.
It is impossible for short sellers to completely close their positions. They do not sell stocks, and there are other funds that sell stocks.
For example, if these funds that lend stocks see that the stock price has risen well and is almost the highest in more than a year, someone will definitely sell the stock.
If you are short, you can buy these stocks, close your position and admit defeat.
And if it gets too big, the Americans will definitely intervene.
Ding Siyao was a little unwilling, feeling that these people were too cheap.
Zhang Yida smiled and said, "Okay, just make some profit, and the ultimate move is almost finished.
Situations like the short squeeze caused by Porsche's acquisition of Volkswagen are rare.
Afterwards, I was investigated by the exchange.”
Ding Siyao nodded, "That's true!"
She smiled and said, "Muddy Waters, which has frightened Chinese concept stocks, has taken a socialist iron fist from you this time. I wonder if I will dare to do air concept stocks in the future."
Zhang Yida doesn't have a particular dislike for Muddy Waters. He's a mess in the trading market, and it's not all about money.
However, it was their bad luck when Muddy Waters encountered them this time.
Just when I was about to resolve P2P debt, I established a consumer finance company, and I set up a plan to make a small profit.
"Short selling will definitely result in short selling. This is how people make a living."
Zhang Yida said with a smile, "Short selling is actually not cost-effective. You won't even make double the profit even if you hold on to death, but you can make several times or dozens of times by going long.
Therefore, more and more people still like to keep an eye on companies with financial fraud, and be sure to be short-term.
Therefore, you still need to be strong in order to strike iron!”
"What if there are still short sellers who refuse to surrender?" Ding Siyao asked again.
Zhang Yida laughed and said, "Then I will add fuel to their fire."
A few days later, the Monetary Authority of Singapore announced that a consortium formed by Ruixiang and Grab had obtained a digital full-bank license in Singapore, and a consortium formed by four Yimin companies had obtained a digital wholesale bank license.
The Indonesian Monetary Authority OJK also announced that it had granted the country’s first digital banking license to Yimin (Indonesia) Bank as a pilot project.
For financial technology companies, financial licenses are a top priority. Without a license, they may be banned one day.
Several Yimin companies obtained consumer finance licenses and digital banking licenses from three countries in July, which greatly boosted the stock price.
The short sellers who wanted to hold on a little longer couldn't stand it anymore and quickly closed their positions, for fear that some companies affiliated with Yimin would announce some good news.
Hedge funds under Yanhuang Investment began to ship stocks, selling stocks at double or triple the purchase price.