Fengshun Investment Company released the following announcement.
Fengshun Investment:
We'd like to ask everyone, how would you strangle a venerable investment company that has been established for twenty years, with a scale exceeding one hundred billion, and an annual profit of 6 to 8 percent?
To answer this question.
We at Fengshun Investment have provided a demonstration.
Tianhong was established in 1996, with a peak capital management scale of 142.3 billion, and the highest profit rate reached 8.4 percent.
This is a very impressive track record.
But is it really that impressive?
We at Fengshun Investment shouldn't have the right to comment; we can only make Tianhong's investment details public.
Warning:
What follows is an official whistleblower report from us at Fengshun, for which we will bear legal responsibility.
In 2012, Tianhong created the Baiyun Favor Project.
This project was not directly managed by Tianhong, but its funds flowed into Tianhong Investment, serving as Tianhong's single largest asset management entrustment party.
I won't go into more detail about this project; those interested can check it out for themselves.
In 2012, this project was merely a fundraising method, offering an annual return of 5 percent. Everything seemed very normal.
However, Tianhong's main operations in 2012 yielded a return of 8.2 percent.
In fact, after our in-depth analysis, we found that Tianhong could not possibly have achieved an 8.2 percent profit in 2012.
So where did this money come from?
The answer lies in the Baiyun Favor Project.
Starting from 2013, this project's return rate increased to approximately 7.5 percent.
The fundraising exceeded 10 billion.
In 2014, it further reached 8.5 percent.
The fundraising surpassed 20 billion, and the following year it broke through 30 billion and was still rapidly increasing.
By 2021, the project's return rate had already reached 11 percent. The fundraising exceeded 60 billion.
All these funds were incorporated into Tianhong Investment.
During these years, Tianhong transferred approximately 12 billion in funds to Lion City through various means. The wife of Tianhong's previous president, Chen Lin, obtained Lion City citizenship the year before last.
Currently, the fundraising for the Baiyun Favor Project is still ongoing. This project remains Tianhong Company's single largest asset management entrustment party and has never undergone financial adjustments.
My peers, what do you think of a fundraising project like this, with an annual yield of 11 percent, that circumvents financial regulations?
We at Fengshun Investment have a bold idea, but we dare not voice it.
Because if we do, the Baiyun Favor Project will undoubtedly implode, and with over 60 billion at stake, the vast majority of investors could lose everything.
Friendly reminder: our company has already submitted relevant materials to the regulatory authorities. We urge investors who have entrusted assets to Tianhong to act quickly.
...
Luo Feng's Company's announcement might seem subdued, but anyone with even a basic understanding of finance could see that once an annual profit rate exceeds 8 percent, one should be prepared for the potential loss of principal. In this world, high returns always come with high risks.
Fengshun Investment had already given the Baiyun Project considerable leeway; otherwise, they could have directly called it a Ponzi scheme.
After all, with the wife of Tianhong's previous president, Chen Lin, immigrating, it was quite apparent that Tianhong had already planned an exit strategy.

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