From the Noah Song Fei thundering event, see the bullish financial risk control

From the Noah Song Fei thundering event, see the bullish financial risk control

This article is transferred from the public number of WeChat: Structured Finance (jghjr2013), the author: Song Shining, the cover: the founder of Noah's wealth, and the Chairman of the Board of Directors, Wang Jingbo (Dongfang IC).

Recently, Noya's Gofei asset management company (in order to facilitate readers to understand, the following will be mixed with Gofei) issued by the private equity fund products credit risk events, attracting attention.

According to media reports, this private equity fund product is invested in a company's accounts receivable to The ultimate debtor of accounts receivable is, who has high credit, so it is regarded as a low-risk product by investors.

Accordingly, the yield of the product is less than 8%. This is a very low level in fixed-income private equity products, even lower than trust products produced by regular financial institutions. Of course, part of this reflects Noah's premium for brand influence.

However, this product unexpectedly appears serious credit risk, a company can not pay normally, the amount is as high as 3 billion yuan. It is rumored that Noya has reported the case and filed a lawsuit, and the actual controller of the financier is actually controlled by the public security department.

Even more surprising is that Noah also sued Jingdong Company, which has no relationship with a company, on the grounds that Jingdong Company has a large number of business transactions and transactions with a company.

Although accounting tells us that the two sides of the market trading behavior are not necessarily related to each other, Jingdong is lying and shooting, and the recent fortune is embarrassing.

Soon Jingdong responded: GoFei did not communicate with Jingdong company with respect to the accounts receivable during the operation of the private-equity products. If the response of Jingdong is true, there is a reason to believe that the financial institution operating the product has some degree of operational defect in the process.

The assets managed by Gofi are nearly 170 billion yuan, and the default of billions is only 2%. Although from the perspective of non-performing rate, this still belongs to the current average of the financial industry as a whole. But in terms of the operation of this product alone, it is also inevitable to question the risk control ability of Goofy.

Event analysis

This incident has now been appealed to the public security and judicial organs. Before the authoritative report came out, this article did not dare to draw conclusions, only based on common sense to reason, and based on the author's financial cognition, a little development.

Due to the security considerations of this structured financial WeChat public platform, this paper does not judge the right and wrong of the relevant institutions, focusing on how to effectively control the risk and avoid the occurrence of such mine explosions. welcome to correct the criticism.


If there is supply chain finance theory knowledge and practical operation common sense, this project is worthy of doubt at the beginning, private equity institutions should not take over.

The wind control first needs to understand the position of its own business and make the correct situation judgment. The air-control, though not even, wants to rely on the wind-control to reverse the sky, also can't.

This is actually the principle of minimizing the cost of financial financing in supply chain. This principle means that if the supply chain is formed by "suppliers, producers, dealers and consumers" as a whole, then the application of supply chain finance and the arbitrage behavior of the financial industry will make the overall financing cost of the supply chain tend to be the lowest.

A corollary to this theory is that under the assumption of satisfaction, the external financing behavior of a particular supply chain is borne by the company with the highest credit and the lowest financing cost in the supply chain.

The company then provides credit assets for upstream and downstream through supply chain finance, and obtains the spreads under certain risks.

Different supply chain situations are different. Some have the lowest financing costs for suppliers, some have the lowest cost for producers, and some have the lowest for consumers. Therefore, it reflects various supply chain financial models in the actual financial system.

There are many applications to the principle of minimizing the cost of financial financing in supply chain. In this case, we can draw the conclusion that "there are hidden dangers in this project and should be abandoned".

Go back to the analysis of this event. In this supply chain, it is clear that Jingdong Company, as a distributor, has the highest credit and the lowest financing cost. Therefore, the external financing of the supply chain should be carried out by Jingdong, and then Jingdong will provide credit funds to upstream producers and downstream consumers. .

In this case, the entire supply chain can, as a whole, minimize the cost of financing.

In fact, Jingdong did provide credit support for the upstream and downstream through the two products “Jingbaobei” and “Jingdong Baizhi”. As early as 2014, the author exchanged information about related products and securitization with Jingdong Financial.

From the financial point of view, the upstream enterprises of high-credit subjects are the high-credit subjects for the accounts receivable of high-credit subjects, so they are low-risk businesses. This may be the reason why Song Fei was interested in this asset.

The question is, in a relatively competitive financial market, how can such low-risk products provide high returns that meet the requirements of private equity products?

Jingdong’s financing cost is between 4% and 5%. JD’s own accounts receivable as debtors (from Jingdong’s point of view are accounts payable), and for JD’s own factoring company, it is a zero-risk business. .

In this case, the spread of nearly a few percentage points, Jingdong Bay of Jingdong will let go of it?

As a result, such assets, which are able to capture food from, can only be a lower-cost bank than Jingdong, or a standardized ABS product.

However, these institutions face the problem of asset certainty when they want to compete for such assets. It is obviously impossible to take food from and get 's right to cooperate.

There is an idiom called "seek skin with a tiger", which is exactly what it means. This is the logic of the innate problems of this project from the principle of supply chain finance.

From the point of view of the big capital management industry, due to the different cost of debt, the customer choice of each organization appears the share. The current situation is that, from a risk point of view, banks are the lowest, followed by insurance, then trust, then securities management (funds), and then private equity funds.

This pattern is determined by the debt cost of each organization, and it is difficult to change it simply by the efforts of the professional and business staff of the risk control personnel.

Only a certain short period of time, a very small number of assets can provide excess returns. For example, the real estate industry, which is able to provide high-yield at low risk, has become the “fragrance” of private equity funds and trust companies, mainly due to restrictions on the bank’s real estate business. Of course, this is another topic, and it won't expand here.

To do risk control in China, there is simply not enough knowledge in finance and finance, and it requires experience from the rivers and lakes. In other words, the personnel who do the risk control must have the basic qualities of criminal investigators.

In the domestic financial industry, the best way to adjust the risk control:

The securities company has the highest equity investment bank; the second is the commercial bank; the trust institution is again; then the fixed income investment bank of the securities company; the non-financial institutions such as private equity institutions and guarantee institutions have uneven risk control capabilities, and the high level exceeds the equity investment bank. A low level is similar to an idiot.

In terms of group quality, the quality of the employees of Noah's well-known private equity institutions is close to that of securities companies' fixed income investment banks. The author also knows several friends who jumped from the securities company's fixed income department to Noah.

The author concludes that Noah's risk control capabilities are close to or even exceed the trust.

However, as analyzed above, the costs of different institutions determine the underlying assets, which are fundamental to product safety. Therefore, high risk control capability does not mean that the safety of its products is high. It can only mean that the products produced are relatively safer when faced with the same quality of basic assets.

What are the reasons for the differences in risk control capabilities among different institutions in the domestic financial industry? It is mainly the loss that has been eaten, and the loss that has been suffered is different.

Equity investment banks face the most successful, most confident and opportunistic entrepreneurial group in China, and practitioners may be brought into the ditch if they are slightly careless.

The harsh environment has created the professional sensitivity of these personnel to prevent fraud.

The author once did a short-term equity investment banking business. At that time, the leader followed the warehouse for several nights and nights outside the warehouse of the company. The number of trucks in the warehouse was counted one by one, in order to prevent entrepreneurs from making fraud on sales.

This experience is so miserable that the author finally gave up the equity investment banking business. In addition, the author has witnessed a number of incidents in which the fraudulent issue of the investment bank’s fraudulent investment has been punished, giving the author a strong awareness of fraud prevention.

Based on his own research and experience, the author summarizes two principles:

The first principle: the principle of presumption of guilt and questioning everything.

Based on the reality of China's credit environment, all materials and all words should be assumed to be fake materials and deceit without verification and verification. Even if you see it with your own eyes, listen to it and get it with your own hands, it should not be regarded as necessarily true. There are too many cases to learn in this respect, and a few are simply listed.

The issuance of private debt shall be guaranteed by the City Investment Company. However, the business staff made mistakes in reviewing the materials. It is only seen that the riding seal is stamped (the purpose of the sewing seal is to prevent the contents of the document from being changed), but it is not closed and checked. The sewing seal is not the same as the official seal in the back. The city investment company does not provide the guarantee based on risk control at all. Of course, in reality, there is also a direct engraved radish seal to deceive people.

Or some private debt issue. Less than two years after graduation, investment bank finance personnel have been in the simple greenhouse environment of the school, with little social experience. They also personally passed with the audit signatories of accounting firms when they received financial reports, and personally took over the materials from their hands.?

However, ignoring a point, the staff of this accounting firm is itself false. Still being cheated.

The author used to live in an IPO project done by the Investment Bank Department of a securities company, which was even more exaggerated, and it was found that most of the seals of the materials were privately engraved by entrepreneurs, and what chapters were basically required. The investment bankers suffered a lot.

The second principle: the principle of cross-verification.

Many times, even if practitioners have the spirit of questioning everything, they have personally verified and verified, but they are still being deceived.

A typical example is the previous US financial fraud case.

Us, which operates on the basis of guarantees provided by the bank, sees itself as a low risk, and the company's personnel go to the bank to personally verify it. However, the problem arises in the joint operation of financing intermediaries and financiers. They borrowed the office of the president of the bank and impersonated him. The same fake bank officer came in with a box keeping the seal and stamped it in front of the American company staff. This chapter is, of course, also false. The United States meets this kind of group hoax, let you be careful to guard against, is also unable to prevent ah.

There is also an earlier case, a commercial ticket issued by a large state-owned enterprise to carry out the discount business.

Banking personnel also went to the finance department of the state-owned enterprise for verification purposes. The bank has been doing business with the head of the finance department and is familiar with it. This, of course, is not fake, but also watch the head of the finance department take out the seal and seal it on the commercial paper in person, and think it is safe. I don't know, the head of the finance department was bought off, this seal is his own engraved.

How do you deal with this scam?

When the court decides the case, it usually cannot accept the solitary card, in order to avoid misjudgment and cause wrongful cases.

The logic of doing so is simple, based on the information verified by multiple sources, the natural authenticity is higher. According to this logic, risk controllers can also cross-verify with several different independent sources of information, and the probability of being deceived is much reduced.

Based on this principle:

If the US personnel go to the bank, they will visit the other departments of the bank to check the guarantee; if the bank personnel go to the state-owned enterprise to check the trade ticket, randomly select one or two business departments (the commercial paper is based on the real trade background of the business department). The cross-validation of the personnel may avoid the end of being cheated.

In this operation, random selection of cross-verification personnel is very important, if it is introduced or arranged by the financing party customers, it may be a bureau arrangement, can not be accepted.

Event reflection

This incident reflects a lot of things.

First, the risk control ability of the financial industry is low.

Because China's credit environment is very bad, the ability to play a role in China's risk control, its formation not only needs to be based on traditional classical economics, finance, finance, accounting, but also needs to be based on the "river and lake" calendar.

This is the soft underbelly of many “high-educational shallow rivers and lakes” practitioners in China's financial industry. These people are too simple in the face of entrepreneurs and old bankers who have experienced social warfare. If they are slightly inadvertent, they will get into the set. If they encounter greed and gain improper benefits, they will never recover.

As the saying goes, after learning a lesson, perhaps after entering the game, everyone's experience and level have naturally improved. It's just that the cost of financial fraud is too high.

Second, the risk control capability and the current status of re-marketing light wind control make the development pattern of the financial industry lower and lower, and the financial governance capability including risk control capability has not been effectively improved, resulting in China's current financial repression problems. Become more serious than before.

Recently, there is also an anti-wisdom article entitled "Finance is watching Heaven, talking about risk Control is bullshit" spread in the circle of friends. This paper does not analyze the mistake or misleading of confusing the systemic risk of "Heaven" with the non-systematic risk of a single project, and the contempt attitude of the article on risk control will lead to the development of China's financial industry into a dead end.

In fact, for companies that have a common sense of judgment and risk control, this time, Gopher’s stepping on the thunder can be avoided.

Third, the improvement of the risk control capability of financial practitioners does not mean the improvement of financial institutions' risk control capabilities.

The company's system design is very critical and needs to be shaped by various departments. Among them, the judicial system assigns functions to the public security bureau, the procuratorate and the courts, which are worthy of reference.

In the author's point of view, almost every major fraud incident has the cooperation of financial institutions. These ghosts are either directly bought, or for their own bonuses, or for performance appraisal, etc., and they are blind to some problems.

In this sense, the aforementioned principles of questioning all need to be implemented in financial institutions:

It is the company's business department that should be questioned and guarded by the risk control department. The company's management should most question and guard against the company's risk control department.

Some people may ask, if Wang Jingbo understood this truth before, this project may not have problems or be passed? However, smart readers, please tell me, who is going to question and guard against Wang Jingbo?

This article is transferred from the public number of WeChat: Structured Finance (jghjr2013), the author: Song Shining, the cover: the founder of Noah's wealth, and the Chairman of the Board of Directors, Wang Jingbo (Dongfang IC).

* The article is an author's independent point of view, does not represent the position of the tiger sniffing net. This article was published by Structured Finance© Authorized by and edited by Tiger Sniffing. Reprint this article with the author's consent, and please attach the source (虎 sniffing net) and the link on this page. Original link:

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