Wu Changjiang was detained by police and his stock was frozen

BDO Runda announced last night that Wu Changjiang’s holding of 9.31% of BDO Runda has been frozen by Chongqing’s Higher People’s Court, involving 130 million shares, and the waiting time for a 24-month freeze. According to BDO Runda's yesterday's closing price of 9.03 yuan/share, Wu Changjiang's frozen stock market value of 1.174 billion yuan.

Wu Changjiang, who is the founder of NVC (hereinafter referred to as “NVC”), has had bad luck this year. In the "NVC storm," he was successively dismissed as the NVC president, executive director, etc., and was investigated by the Public Security Bureau of Huizhou City for alleged misappropriation of funds from NVC. In addition, there are rumors that Wu Changjiang gambling money in Macau owes huge gambling debts.

In December 2012, Wu Changjiang transferred most of the shares held by NVC to BDO Runda, and Dehao Run reached the majority shareholder of NVC. As the exchange price, Wu Changjiang later subscribed to BDO Runda for private placement, becoming the second largest shareholder of BDO Runda, holding the second only to BDO Runda Chairman Wang Donglei.

This time Wu Changjiang’s holding of BDO Runda’s equity was all frozen by the judicial system. Is it because of the problem of debt rumors or because of alleged misappropriation of NVC funds? In this regard, Bundesliga Executive Secretary Deng Fei said in an interview with the author that "do not know." He said that BDO Runda obtained the above information from Shenzhen Branch of China Securities Depository and Clearing Corporation Limited and fulfilled its obligation of information disclosure, but the specific reasons are not clear.

Recently, it was rumored that Wu Changjiang was detained by the public security authorities in early December. However, this rumor has not yet been confirmed by Wu Changjiang's acquaintances, lawyers and public security agencies.

Wu Changjiang’s original cell phone is currently shut down. Wu Changjiang’s latest Weibo post was written on December 2nd: “The two days in Shanghai are really too cold, but I’ve seen some dealer brothers in East China, but my heart is very warm! Especially if you say anything, I’m willing to die. With the words, I was moved to tears, thank you for your trust and support, I will not give up! Tomorrow will be better!"

Many people who once worked at Wu Changjiang told the author that Wu Changjiang has not been contacted for some time.

Wu Zhijiang’s attorney, Xiong Zhi, said in an interview with the author last night: “I don’t know (Wu Changjiang’s holding of BDO Runda’s shares was frozen by judicial authorities)”. He also said that he is with Wu Changjiang's family. When asked whether Wu Changjiang’s detained rumors were true or false, Xiong Zhi said, “The public security organ’s statement prevails.”

BDO Runda also announced recently that it intends to transfer a stake in a Zhuhai subsidiary. According to a person close to BDO Runda, Wu Changjiang’s alleged illegal guarantees have allowed NVC to withdraw more than 500 million yuan from the bank. NVC’s accounting firm may make provision for bad debts. The maximum impact of Tatsuna’s shareholding in NVC may reach 148 million yuan. At the time, BDO Runda transferred the equity of the subsidiary company and returned more than 100 million yuan of funds, which may be used to compensate for the related book loss of DHL in order to maintain the company's performance.

Regardless of success or failure, Wu Changjiang has always been a hero, with a keen sense of the market, and the big brother of rivers and lakes. If he is still free, he should also come up with many "tricks." The problem is that he dares to gamble, does not follow the rules of the character, and gives people a handle.

According to BDO Runda's announcement on Nov. 7, its subsidiary, NVC, which holds 27.03% of the shares, has been forced to deduct 549 million yuan of deposits due to Wu Changjiang’s illegal guarantees to perform joint guarantee responsibility. This will likely give NVC brought large economic losses. The BDO Runda's biggest loss was 148 million yuan.

According to the above-mentioned announcement, during the period from August 30, 2013 to August 4, 2014, Wu Changjiang and others used the methods of borrowing, borrowing, etc. to carry out illegal guarantees in the name of Chongqing Nexus 8 times, involving an amount of approximately 5,000 yuan. 3.96 billion yuan, the amount of margin is 403 million yuan. At present, the funds from the four affiliates borrowing from the bank are unknown, and Chongqing NVC has been forced to perform large-sum joint guarantee responsibilities of 395 million yuan.

In addition, the RMB 173 million non-compliance of Chongqing Leishi Bank of China was forcibly deducted 154 million yuan from the bank, and the funds involved in Wu Jiangyi's illegal guarantees have reached 549 million yuan. The announcement also stated that the RMB 53.84 million deposit of Chongqing Leishi in China Construction Bank was currently frozen by the judicial authorities. This was also due to similar violations of guarantees by Wu Changjiang. Specific issues are still being further verified.

The announcement stated that Wu Changjiang did not inform NVC's board of directors of these major non-compliance guarantees, nor did it have the approval and approval of NVC's board of directors and shareholders' meeting.

At present, the board of directors of NVC led by Wang Donglei has already controlled the right to operate NVC. The integration of BDO Runda and NVC next year will be further deepened. However, after losing the right to operate NVC, Wu Changjiang now has assets with a market value of 1.174 billion yuan that have been frozen by the administration of justice. The outlook is worrying.