Recently, the China Securities Regulatory Commission (CSRC) has issued administrative penalties against Zhejiang Ruifengda Asset Management Co., Ltd. (hereinafter referred to as Ruifengda), its affiliated private fund institutions, and related responsible personnel, including the actual controller Sun Wei, for their illegal and non-compliant activities. The investigation revealed that Ruifengda, its affiliated private fund institutions, and the relevant responsible individuals seriously violated laws and regulations governing private funds.
The Shanghai Securities Regulatory Bureau imposed combined fines and confiscations totaling over 28 million yuan on Ruifengda and its affiliated private fund institutions. Additionally, fines exceeding 13 million yuan were levied on five responsible individuals, and a lifetime ban from the securities markets was enforced against Ruifengda's actual controller. The Asset Management Association of China has revoked the manager registration of the relevant private fund institutions.
Regarding potential criminal clues that may be involved in these illegal activities, the securities regulatory authorities will adhere to the principle of transferring all applicable cases and will refer the matter to public security organs in accordance with laws and regulations.
The CSRC will resolutely implement the decisions and deployments of the Central Committee of the Communist Party of China and the State Council. It will continue to strictly investigate and punish egregious illegal and non-compliant behaviors in the private fund sector, such as illegal fundraising, misappropriation of funds, self-financing, self-dealing, and利益输送 (interest conveyance). The commission will rigorously pursue the liability of the violators, increase the cost of non-compliance, and persistently purify the market environment. Concurrently, it will urge private fund institutions to promptly rectify various irregular practices to promote the standardized and healthy development of the industry and effectively protect the legitimate rights and interests of investors.