Wealth management turned into a "landmine"! The "industry leader" in securities has been sentenced to pay 29.3 million yuan in compensation.
The financial dispute between leading home textile company Fuanna and the "industry leader" in securities, Citic Securities, has reached a first-instance judgment!
On December 25, Fuanna announced that the court issued a first-instance judgment in its lawsuit against Citic Securities and China Merchants Bank Guangzhou Branch regarding a financial entrusted wealth management contract dispute. The court ruled that Citic Securities must compensate Fuanna for principal losses of nearly 29.3 million yuan. Subsequent liquidation repayments from the involved asset management plan will be split 50/50 between the plaintiff and Citic Securities.
This means that this overdue incident, which erupted back in 2022, has finally seen phased progress after nearly three years.
A 120 million yuan investment in wealth management yielded only a 10% principal recovery, as the court delivered its first-instance verdict.
Recapping the sequence of events leading to this dispute: In 2021, Fuanna invested 120 million yuan to purchase a customized asset management plan from Citic Securities—the CITIC Securities Fu'an FOF Customized No. 1 Single Asset Management Plan. Initially seeking stable returns, the product unexpectedly defaulted on March 19, 2022. By the end of 2024, Fuanna had only recovered 14.3023 million yuan from the custodian account of the CITIC No. 1 product, failing to recoup the remaining principal of 106 million yuan and related expected fixed returns.
The primary holdings of the Fu'an No. 1 plan were Oriental Red Currency B and Beijing University Resources Hangzhou Seaport City. The latter is a notorious "unfinished building" project in Hangzhou. The project debtor, Zhejiang Land Real Estate Development Co., Ltd., had already substantially defaulted. Compounding the issue, the main joint liability guarantor, Peking University Founder Group, saw its restructuring plan fall short of expectations, leading to a 100 million yuan bad debt from the plan's investment in this real estate project company.
On August 31, 2023, Fuanna formally filed a lawsuit with the court against Citic Securities and China Merchants Bank Guangzhou Branch. The case underwent three court hearings in 2024, with the market closely watching for the judgment outcome.
According to management reports provided by Citic Securities, as of September 30, 2025, the net asset value of the "Fu'an No. 1" plan had dwindled to only 77.8205 million yuan. Furthermore, Fuanna had already made a provision for impairment of 27.8772 million yuan for this overdue amount.
The first-instance judgment is as follows: Firstly, Citic Securities must, within 10 days of the judgment taking effect, compensate Fuanna for principal losses of nearly 29.3 million yuan. After the judgment takes effect, funds recovered from the liquidation of "Fu'an No. 1" will be split 50/50 between Fuanna and Citic Securities, with payments to Citic Securities capped at the 29.3 million yuan compensation amount. Secondly, Fuanna's other litigation claims were dismissed.
Additionally, the court clarified that Fuanna had previously withdrawn 5.5902 million yuan from the dedicated asset account, and the account had also received an investment repayment of 35.8371 million yuan from Western Trust, which has not yet been withdrawn. Citic Securities and China Merchants Bank Guangzhou Branch are required to cooperate with Fuanna to fully withdraw these funds.
Listed companies' preference for wealth management is stabilizing, with a significant increase in risk awareness.
In recent years, disputes over wealth management products involving listed companies, often arising from nested asset management products and channel businesses, have occurred frequently.
Industry analysts note that in previous years, wealth management products purchased by listed companies were often highly correlated with real estate and leaned towards trusts and high-yield bonds. However, with risk exposures in sectors like real estate, some wealth management products have "exploded" in recent years, leading to a gradual increase in safety awareness among listed companies.
This year, numerous listed companies have announced wealth management plans, but the total scale of subscriptions has declined. Wind data shows that as of December 25, a total of 1,151 A-share listed companies purchased 15,385 wealth management products during the year, with a total subscription amount of 966.8 billion yuan, a year-on-year decrease of 18.64%.
In fact, this marks the third consecutive year of decline in the scale of wealth management purchases by listed companies. The scale plummeted by 34% year-on-year in 2023, with the decline narrowing to 5.45% in 2024.
Furthermore, listed companies have become more cautious and diversified in their product selections. This year, for example, structured deposit products were the most popular among listed companies, with a total subscription amount of 574.34 billion yuan, accounting for nearly 60% of the total. Bank wealth management products followed, with a total subscription amount of 110.1 billion yuan, while securities firm wealth management products attracted 68.7 billion yuan in subscriptions.
Securities industry personnel stated that while purchasing wealth management products can enhance a listed company's capital utilization efficiency, there is a need to be vigilant against companies "neglecting their main business" by investing large sums in non-core areas. They suggested that regulators should reasonably set upper limits on scale, strengthen inspections and accountability for companies with frequent operations, large losses, or questionable information disclosure, and avoid the unreasonable phenomenon of companies "engaging in wealth management while simultaneously conducting refinancing".
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