Shengyuan Environmental Protection's subsidiary's huge loss of 81.54% when subscribing to a private equity fund of 60 million yuan attracted attention. The custodian China Merchants Securities responded to related questions. China Merchants Securities stated that the products involved are R4 medium to high risk. They have carried out custodial duties such as account management, valuation review, and violation supervision reminders in accordance with regulations and contracts, and have strictly carried out their duties of supervising and alerting contract violations such as product investment ratios and excessive leverage. China Merchants Securities emphasized that disclosure of net worth is an obligation of the manager, and that the custodian cannot directly reach investors. China Merchants Securities did not know in advance about acts such as the manager falsifying net worth and issuing letters of commitment outside the contract. The inspection revealed that the relevant net worth documents were tampered with, and that agreements outside of the contract were not within the scope of its supervision. In the future, China Merchants Securities will cooperate with the relevant dispositions and reserve the right to pursue false accusations.

Shengyuan Environmental Protection's subsidiary's huge loss of 81.54% when subscribing to a private equity fund of 60 million yuan attracted attention. The custodian China Merchants Securities responded to related questions. China Merchants Securities stated that the products involved are R4 medium to high risk. They have carried out custodial duties such as account management, valuation review, and violation supervision reminders in accordance with regulations and contracts, and have strictly carried out their duties of supervising and alerting contract violations such as product investment ratios and excessive leverage. China Merchants Securities emphasized that disclosure of net worth is an obligation of the manager, and that the custodian cannot directly reach investors. China Merchants Securities did not know in advance about acts such as the manager falsifying net worth and issuing letters of commitment outside the contract. The inspection revealed that the relevant net worth documents were tampered with, and that agreements outside of the contract were not within the scope of its supervision. In the future, China Merchants Securities will cooperate with the relevant dispositions and reserve the right to pursue false accusations.