Yongjin Group went ashore. After many once-famous “family companies” such as Delong Group, Hongyi Group, and Chaohua Group disappeared, Yongjin Group has entered a stage of rapid development. Currently, it holds listed companies

The total market value of the equity has exceeded 2.8 billion yuan.

Although the market has mixed praise and criticism for the operation of the Yongjin System, it is undeniable that today, as private equity investment becomes increasingly powerful, it has become a certain model of private equity funds.

The biggest feature of the Yongjin Department is that it has very well-informed information and rich human resources under deliberate management. It can adjust investment strategies in a timely manner according to economic development and changes in the policy environment at different stages, and every change in its operating methods is accurately grasped.

Keep track of the pulse of China’s capital market development.

In the 1990s, the Yongjin Department mainly accumulated funds through policy-based "blind spot arbitrage" methods such as allotment of shares, transfer of legal person shares, and allotment of new shares; around 2000, it drew on VC concepts to invest and incubate a number of high-tech startups.

; After 2002, private equity investment was used to transfer the equity of Qianjin Pharmaceutical, and the holding Jiuzhitang Group was used as a platform to control China International Finance Securities, and received huge investment income after the two companies were successfully listed.

On May 15, 2007, Bank of Communications (601328) successfully returned to A from the Hong Kong capital market.

On this day, for Yongjin, a private equity fund that has been in the securities market for more than 10 years, success means even more, even though it is only the "smallest" institutional investor in Bank of Communications.

Because it only took 2 months to win the state-owned legal person shares of Bank of Communications, and its book profit has exceeded 100%; also because it successfully took a share of the bank listing trend.

On March 23, previously, Guojin Securities, controlled by Jiuzhitang Group under the Yongjin Group, successfully backdoored Chengdu Construction Investment (600109), causing the value of its shareholding to soar to more than 1.3 billion yuan (based on the closing price on May 17, 2007)

.

This is also the most successful investment case of Yongjin Group.

Reviewing the development history of the Yongjin system, we found that 2002 was an important watershed.

Prior to this, the Yongjin Department mainly seized a series of policy opportunities arising from the transition from China's planned economy to a market economy, moved to various investment markets according to policy hot spots, and obtained high returns with relatively low risks through the "blind spot arbitrage" model.

After that, the Yongjin Group began to enter the industrial field, controlling Jiuzhitang and becoming the second largest shareholder of Qianjin Pharmaceutical.

With the Chengdu Construction Investment controlled by it becoming the most expensive financial stock in the A-share market, Qingdao Soft Holdings and Beiqing Media invested in VC were successfully listed, plus other assets related to Jiuzhitang, Qianjin Pharmaceutical, Yunnan Trust and other assets

With listed companies, financial companies, and some unlisted high-tech companies in which it has equity interests, the industry-finance integration model created by the Yongjin Department has begun to take shape.

Seize the three "blind spot arbitrage" opportunities in the era of split shares. In the early days, the Yongjin Department was mainly engaged in equity transactions at specific stages of the development of China's capital market, such as share transfers, legal person share transfers, and new share placements. These are all things that professional investors attach great importance to.

Blind spot arbitrage model.

Through these operations, the Yongjin Department not only accumulated equity investment experience, but also accumulated capital for its future expansion into industry.

When the Yongjin Department was founded, it happened to be the period of China's economic transition.

In 1994, Wei Dong, then 27 years old, established Beijing Yongjin Financial Consulting Company (hereinafter referred to as Beijing Yongjin) in Beijing.

In 1995, Wei Dong founded Shanghai Yongjin Industrial Co., Ltd. (hereinafter referred to as "Shanghai Yongjin"), and in 1999 registered Hunan Yongjin Investment (Holdings) Co., Ltd. (hereinafter referred to as "Hunan Yongjin") with 180 million yuan.

Hunan Yongjin later became the core investment platform of Yongjin Group Co., Ltd. (hereinafter referred to as the "Yongjin Group").

In the 1990s, the stock market was still in the exploratory stage. Due to imperfect laws and imperfect systems, some problems needed to be solved urgently.

When solving these major problems, due to information asymmetry, investors who have information channels or are well-informed can often "take the lead."

When a major measure is introduced in the securities market, it often brings investment opportunities to these people.

Judging from the early investment ideas of the Yongjin Group, it often only participated in equity investments and quickly left the market after holding shares for a period of time. Moreover, it mostly participated in private equity investments in listed or unlisted companies, that is, the primary market and the so-called primary market.

Level and semi-market (we cannot rule out that the Yongjin system also participated in secondary market operations like the private equity "bookmakers" during the same period, but due to lack of data, we will not discuss and analyze it in this article. In fact, after the rise of securities trusts,

Shanghai Yongjin also launched the Yilong China series of securities investment trust products through Yunnan Trust, a subsidiary of Yongjin Group).

In the 1990s, the primary market and primary and semi-market were the blind spots of China's capital market.

Blind spot arbitrage refers to the use of market pricing errors or institutional obstacles to obtain profits. It has strong characteristics of the times and is the product of a specific market environment in a specific period. It requires investors to have keen market observation and the ability to grasp the macro market trend.