From January 12th to 13th, 2022, the "Financing China 2022 (11th) Capital Annual Conference," hosted by Financing China and co-organized by Rongzhong Finance, Rongzhong Mother Fund Research Institute, and Rongzhong Consulting, was grandly held in Shanghai. As a highlight of the Capital Annual Conference, the top nine comprehensive rankings of equity investment in 2021 by Financing China were revealed. China Zhongji Investment won the "2021 Best Special Opportunities Investment Institution in China" award for its efficient project disposal rate and outstanding investment return rate in the special opportunities investment field.
This year's Capital Annual Conference, themed "New Investment Ecosystem, Rediscovering Value," took place at a crucial turning point for the Chinese economy and capital market. It comprehensively explored viewpoints and discussed issues concerning the industry ecosystem under the new circumstances.
The special opportunities investment industry plays a significant role in improving asset utilization efficiency and helping to rediscover the value of resources.
In 2021, unlike traditional special asset investments that rely on low-buy-high-sell arbitrage, China Zhongji Investment focused on discovering, repairing, and enhancing the value of distressed assets and enterprises. It explored a development model of revitalizing existing assets and shaping value. Employing investment banking methods, it built a composite and professional team of "distressed assets +…," transitioning from "collection" to "operation." It invested in and disposed of assets in areas such as enterprise restructuring, distressed real estate, non-performing asset mortgage loans, and asset packages, creating a special asset ecosystem to improve the efficiency of non-performing asset disposal and achieve innovative operations.
The restructuring of existing enterprise restructuring projects was successfully completed. This restructuring solved a major long-standing problem for the local government and addressed the employment issues of hundreds of employees, creating a win-win situation for "capital + distressed enterprises + government." China Zhongji Investment's brand has also received recognition and affirmation from society and the government.
In the disposal of individual projects involving distressed real estate assets, China Zhongji Investment designed a full-chain debt solution, including pre-auction debt sorting, auction procedures, debtor bankruptcy early warning handling, tax handling, invoice handling, planning and design changes, cross-border municipal supporting facilities, and handling of force majeure events caused by the epidemic. Ultimately, it achieved full debt recovery and participated in equity investment, revitalizing and re-operating existing distressed assets and enhancing their value.
In addition, China Zhongji Investment is one of the earliest private equity firms to participate in China's high-yield bond investment. Since the default of China's first "11 Chaori Bond" in 2014, defaults and explosions have spread to weakly qualified private enterprises, "pseudo-state-owned enterprises," weakly qualified state-owned enterprises, and large private real estate companies. With the "breaking of rigid redemption" in credit bonds, secondary bond prices have significantly diverged, and China's high-yield bond market has continued to expand. Relying on the team's comprehensive and continuous research on various high-yield entities, flexible trading style, continuous ability to discover investment targets, scientific pricing model, strict and meticulous risk control measures and investment decision-making process, by the end of 2021, the longest-running Zhongji No. 1 and No. 2 products achieved good returns, and the maximum drawdown in three years was controlled at 5.5%. Currently, the team has explored a stable and sustainable investment strategy for high-yield bonds.
Winning the "Financing China 2021 Best Special Opportunities Investment Institution in China" award is industry recognition and affirmation of China Zhongji Investment's achievements in the special opportunities investment field. In the future, China Zhongji Investment will continue to uphold the philosophy of "discovering opportunities and creating value," using "niche + special investment" as a lever to continue exploring and innovating in the special opportunities field, seizing new opportunities and challenges under the new circumstances, and looking forward to working hand in hand with more investors and excellent enterprises!
As an important indicator of investment industry rankings, the "Financing China 2021 Equity Investment Annual Comprehensive Ranking" is selected by the professional media "Financing China." Held for 11 years, it has always adhered to scientific and rigorous research methods and a fair and just ranking attitude, and has become an important reference for investment, fundraising, and financing for various institutions and innovative enterprises in the industry.
