On November 1, 2015 (September 20, 2015 in the lunar calendar), Xu Xiang, the "first brother of private equity", was arrested. On November 1, 2015, the Ministry of Public Security learned that Xu Xiang, the legal representative and general manager of Zexi Investment Management Co., Ltd., obtained insider information on the stock market through illegal means, engaged in insider trading and manipulated stock trading prices. His behavior was suspected of illegal and criminal crimes, and was recently taken criminal compulsory measures by the public security organs according to law. At present, the relevant case investigation is being carried out in strict accordance with the law. As a legend in the capital world, a photo of the so-called real body with a slightly fat bald head was circulated on Weibo. However, according to the photos leaked from the arrest scene, Xu Xiang in reality was wearing a white casual suit, gray casual shirt, slightly thinning hair, and a pair of rimless glasses. Although the shackles are in his hands, he looks safe. As one of the largest Private Offering Funds in China, Zexi Private Equity is famous in the private equity industry for its high yield and precise control of the market. Its leader, Xu Xiang, is even more of a myth in the industry. In the ever-changing and volatile capital markets, Xu Xiang can always get out of it. When the stock market peaked in 2015, Xu Xiang's private equity has quietly withdrawn. By the end of September this year, its private equity annualized income was stable at more than 200% to more than 300%. This line has not fluctuated for several months, indicating that Xu Xiang has been short for a long time. At present, sources familiar with the stock market say that Xu Xiang's funds have all entered the market. The rumors have been checked four times before, and this time it is true!! The first time it was checked, the rumors: it went viral that Xu Xiang was investigated by the regulatory authorities for manipulating the stock market! At the end of May 2011, Weibo went viral that Xu Xiang was investigated by the regulatory authorities for manipulating the stock market. Affected by this, its heavy stocks at that time fell to varying degrees. On June 2, 2011, Zexi Investment released a "Notice to Investors" on its official website to clarify the market rumors that it was "investigated by the regulatory authorities" and said that the company was normal. The second time it was checked, the rumors: it was rumored that Zhang Chao was involved in the insider trading case of Zishi Investment. Xu Xiang Chuan was investigated. In July 2012, Zhang Chao, the manager of the previous year's private equity champion Zishi Phase I and the chairperson of Zishi Investment Company, was investigated on suspicion At the same time, it was rumored that the Zishi investigation also involved Xu Xiang. Subsequently, Zexi Investment denied it. At that time, the Financial Weekly learned through various channels that Xu Xiang was actually asked to "assist in the investigation", that is, to the regulatory authorities to explain the situation, but in the end did not come to the door to "be investigated". The third investigation was rumored: It was rumored that the Securities Supervision Commission opened an investigation into the big rat warehouse transaction, targeting Xu Xiang. At the end of January 2014, there were media reports that the Securities Supervision Commission was investigating an unprecedented rat warehouse transaction, involving people who were as famous as Wang Yawei. The target was directly aimed at Zexi's investment in Xu Xiang. Subsequently, some media learned from Zexi Investment that Xu Xiang went to work normally that day, chatted with researchers at noon, and asked company employees to refute rumors in the evening. The fourth rumor was investigated: it was rumored that the regulatory department of the restructuring of the Oriental Zircon Industry investigated Zexi Investment. In the first week after the May Day holiday in 2014, the regulatory department investigated the well-known private equity Zexi Investment. The reason may be related to the transactions of Zexi Phase 6 before the suspension of the asset restructuring of the Oriental Zircon Industry. Unlike before, the Securities Supervision Commission is becoming more and more skilled in the use of big data supervision. It is reported that the CSRC compares hundreds of millions of transaction data through big data methods. If the transaction frequency and time of personal accounts and institutional accounts are highly consistent, they will basically be included in the investigation of suspected insider trading. The former Bosera Funds manager Ma Le's insider trading was discovered in this way. According to the Financial Weekly report, the audit department has locked up nearly 50 fund managers and researchers from several fund companies through big data screening. The capital circle is already in danger. A noteworthy piece of information is that in this round of anti-corruption, Wei Jian, director of the Fourth Discipline Inspection and Supervision Office of the Central Commission for Discipline Inspection, is suspected of serious violations of discipline and law, and is currently under investigation by the organization. The Fourth Discipline Inspection and Supervision Office is dedicated to investigating corruption in the financial industry. Therefore, the intensity and breadth of financial anti-corruption and supervision are also significantly strengthened and expanded. ( The views in this article are for reference only and do not constitute investment advice) (Source: Xinhuanet, Financial News Agency, with picture source: CCTV News Weibo) A full list of stocks that Xu Xiang was caught short. At present, the official website of Zexi Investment cannot be opened, but according to the previous official website of Zexi Investment, as of October 23, the net value of Zexi's five Private Offering Funds has risen sharply in the past few weeks, which may indicate that Xu Xiang has increased his position. What impact will Xu Xiang's arrest have on his concept stocks? Will there be a sharp fluctuation in the market on Monday? Xu Xiang himself once said in an interview that before buying stocks, he usually selects them through analysis and field research, and then makes the final investment decision. Therefore, the stocks investigated by Zexi are likely to become the target of his position. According to incomplete statistics, since June 15, Zexi Investment has investigated digital video, Wanda Information, BOE A, Beijing Junzheng, Kolida, Boss Electric, Huichuan Technology, Furui Co., Ltd., Beijing Lear, Huace Film and Television, CLP Environmental Protection, Sannuo Bio, Yasha Co., Ltd., Kanghong Pharmaceutical, GCL Integration, Chengfei Integration, Borui Communication, Dunan Environment, Xinwei Communication, Dongjiang Environmental Protection, Rhine Sports, Superstar Technology, Rabbit Baby and other 23 stocks. According to the media report, Zexi Investment has investigated the stock situation for one year and the stock performance within 60 days for investors' reference. In the third quarterly report, Xu Xiang's mother, Zheng Suzhen, appeared in the list of tradable shareholders of Daheng Technology and Wenfeng Shares, ranking first and second respectively. (The views in this article are for reference only and do not constitute investment advice) (CICC Online Comprehensive Flush, Daily Economic News, First Financial, Hong Kong Stock Excavator) Xu Xiang started the Ningbo Expendables "At that time, Xu Xiang was one of the three leaders of the Ningbo Expendables, and Xu Xiang took the lead in fighting the'Five Golden Flowers'. He later moved to Shanghai, Guotai Junan Shanghai Jiangsu Road Sales Department and Guotai Junan Yangshupu Road Sales Department have been there, and later mainly in the Oriental Securities Zhaojiabang Sales Department. Now Ningbo still has a wave of funds to follow him." An industry insider told reporters this. The person said that Xu Xiang is very low-key, has a good reputation in the industry, and his education is not high, but he joined the stock market very early, starting at the age of 17 or 18. Even so, he was still young in the private equity industry when he was born in 1978. In Oriental Securities, Xu Xiang was very famous. He was once a super customer of the Zhaojiabang Road sales department of Oriental Securities. The sales department moved from No. 8 Baoqing Road to No. 333 Zhaojiabang Road, and Xu Xiang "ambushed" in the meantime for several years. An insider of Oriental Securities said: "Xu Xiang was personally connected by the general manager of the Zhaojiabang Road sales department at that time, and now his account has been cancelled. Before, he would participate in some popular sectors, fast in and out, and the market sensitivity was very high. He was good at fighting against it. As the largest customer of Oriental Securities, it is about 2 billion yuan, so that executives will sigh at the dinner table that Xu Xiang's funds alone have topped the entire business department of Oriental Securities' general scale ". The bear market won the first battle on March 5, 2010, Zexi Ruijin No. 1 was established, and the first phase was 1 billion yuan, far exceeding the size of many Private Offering Funds in the market. After Li Xuli came out of the public offering last year, Chongyang Investment issued the first phase of products through the private banking channel of China Merchants Bank. Since late April 2010, the market has plummeted unilaterally, and the index has fallen by as much as 20%. Zexi No. 1 was not affected at all, but set a new high: the net worth was 1.03 yuan on March 19, 1.05 yuan on March 26, 1.15 yuan on April 9, 1.16 yuan on May 14, 1.23 yuan on May 21, and 1.25 yuan on May 28. Within three months of its establishment, Zexi No. 1's yield reached 25.47%, which impressed many private equity professionals. Style turns to the story that Xu Xiang entered the market with 200,000 yuan in his arms, fought fiercely for many years, and his net worth has reached 2 billion yuan. There is also a version that 30,000 yuan entered the market, and some people claimed that he had 5 billion yuan. These are not important. It is recognized in the industry that his short-term techniques are unique and his style is fierce. Therefore, some people believe that the Sunshine Private Equity, which originated from the "Expendables", operates in a variety of ways and is difficult to grasp. Therefore, it is necessary to remain vigilant. There are also doubts in the industry about Xu Xiang's "fierce" investment style. Among them, on May 24, 2010, the trend of "one-word decapitation knife" that appeared in the Laibao Hi-Tech market was buckled on the head of Zexi No. 1. Suspected of manipulating stock prices On December 19, 2014, Zhang Xiaojun, a spokesperson for the Securities Supervision Commission, informed the law enforcement work of 18 stocks, including Zhongke Cloud Network, Baiyuan Pants Industry, and Ningbo United, involved in market manipulation violations, and said that the suspected institutions and individuals have been investigated. Wang Zhibin, a lawyer at Jiesai Law Firm in Shanghai, told the "Investment Times" reporter, "The Securities Supervision Commission has named 18 listed companies, which has shown that the regulators have sufficient evidence in their hands. Whether to start administrative procedures or judicial procedures in the future depends on the size of the target amount. Meeting the criminal filing standard constitutes a crime. Among these 18 companies, the most eye-catching is Ningbo United. Private equity boss Xu Xiang holds up to 15.54 million shares, becoming the second largest tradable shareholder after Zhejiang Rongsheng. At the shareholders' meeting in April this year, Xu Xiang's Zexi series of trust products proposed Ningbo United to implement high transfer, but it was ultimately rejected by the shareholders' meeting. Some market participants have questioned that the Private Offering Fund has the voice over a large number of holdings. The ultimate purpose of high delivery is to ship smoothly after the stock price rises. The performance of Xinke Materials, Mingpai Jewelry and other companies also reflects this characteristic. Mingpai Jewelry has never implemented high delivery in history. After Zexi's intervention, the company rarely implemented 10 to 12, and then Xu Xiang's products completed the run. Xinke Materials also continued this trajectory. Private equity products held a large number of positions, announced restructuring, high delivery and other benefits, and then private equity products took advantage of the frenzied market atmosphere to escape. In mid-2014, the market once went viral that Xu Xiang was inspected by the Securities Supervision Commission, but Zexi publicly denied the rumors. Judging from the naming of the heavy-holding stock Ningbo United by the Securities Supervision Commission, this rumor is obviously not groundless. "Now we should pay attention to the follow-up investigation results of the Securities Supervision Commission. If there is collusion between listed companies and institutions, release news to cooperate with speculation, or institutions use reverse, create trading volume and other methods to interfere with the normal operation of the stock price, follow-up judicial procedures should be initiated, and investors who suffer losses can also file civil lawsuits." Wang Zhibin believes. Affected by the news, the stock prices of 18 listed companies plummeted collectively, and it is rare for Xuxiang heavy-holding stocks to plunge collectively. As the incident further ferments, the chain reaction in the capital markets has just begun.