In Depth: Chinese ‘Mystical’ Financier in Cross-Border Legal Peril
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A file photo of Sui Guangyi.
Editor’s note: Ding Yi Feng group founder Sui Guangyi is facing escalating legal consequences. Hong Kong’s securities regulator obtained a temporary asset freeze order against Sui and 11 others in October, restraining HK$82.4 million ($10.6 million) in assets tied to alleged market manipulation of a listed company in 2018 and 2019. Chinese mainland authorities are separately investigating him for suspected fundraising fraud.
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- Ding Yi Feng group, led by Sui Guangyi, is under investigation for alleged market manipulation and fundraising fraud, with HK$82.4 million ($10.6 million) in assets frozen and about 130 billion yuan ($18 billion) in unpaid principal and interest affecting hundreds of thousands of investors.
- The group sold high-yield wealth management products, often using mystical beliefs and aggressive marketing, but defaulted on payments as a liquidity crisis unfolded in 2023–2024.
- Authorities and regulators in China and Hong Kong have issued warnings and begun legal action; the group's model showed classic Ponzi scheme traits.
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Who’s Who
- Ding Yi Feng group
- The Ding Yi Feng group, founded by Sui Guangyi, is under investigation for alleged market manipulation and fundraising fraud. Based in Shenzhen, the group used mystical beliefs to market high-yield wealth management products, primarily to retail investors. It faces a liquidity crisis with an estimated 130 billion yuan ($18 billion) in outstanding principal and interest, affecting hundreds of thousands of investors.
- Ding Yi Feng International Asset Management Group
- Ding Yi Feng International Asset Management Group is a company associated with Sui Guangyi. In January, it sent a letter to investors announcing plans to list on an international digital asset exchange, requiring a lock-in of investments until September 10. The company promised quarterly dividends, potentially in digital options, and guaranteed repayment for IPO investors, forecasting significant asset growth. This occurred amidst a liquidity crisis where the group faced an estimated ¥130 billion ($18 billion) in outstanding principal and interest.
- Shenzhen Ding Yi Feng Assets Management Co. Ltd.
- Shenzhen Ding Yi Feng Assets Management Co. Ltd. was founded by Sui Guangyi in January 2011. It is a key entity in the Ding Yi Feng group, which used it to build a network of connected companies and sell various wealth management products. These products claimed high annual returns, ranging from 20% to 160%, with maturities from six months to 20 years.
- China Investment Fund International Holdings Ltd.
- In 2015, Sui Guangyi acquired a 16.19% stake in China Investment Fund International Holdings Ltd. and increased his holding to 28.65% in 2016. He became chairman in October 2015, and in 2018, the company changed its name to China Ding Yi Feng Holdings Ltd. It was later involved in a stock manipulation scandal and removed from Hang Seng indexes in 2019.
- China Ding Yi Feng Holdings Ltd.
- China Ding Yi Feng Holdings Ltd. (00612.HK) was originally China Investment Fund International Holdings Ltd. and changed its name in 2018. The company was founded by Sui Guangyi and Ma Xiaoqiu. It became embroiled in a stock manipulation scandal, leading to its removal from Hang Seng indexes in 2019 and an SFC investigation into alleged manipulation of its shares in 2018.
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What Happened When
- Between 1994 and 1997：
- Sui Guangyi served as a deputy mayor of Dunhua.
- 1997：
- Sui Guangyi resigned from his government position to become a Taoist monk.
- 2014：
- A CCTV channel broadcasted a profile of Sui Guangyi.
- 2015：
- Sui Guangyi reportedly had a dream leading him to invest in stock code 00612.HK and began acquiring a stake.
- By the end of 2015：
- Sui Guangyi had bought a 16.19% stake in China Investment Fund International Holdings Ltd (now China Ding Yi Feng Holdings Ltd).
- October 2015：
- Sui Guangyi became chairman of China Investment Fund International Holdings Ltd.
- January 2016：
- Sui Guangyi made a recorded speech at the company’s annual gala.
- 2016：
- Sui’s holding in the company increased to 28.65%; he started annual pilgrimages to Changbai Mountain Historical and Cultural Park.
- 2017：
- The company was included in MSCI global indexes.
- 2018：
- Company name changed to China Ding Yi Feng Holdings Ltd; company included in Hang Seng indexes.
- August 28, 2018：
- Large investor ceremony held at Changbai Mountain Historical and Cultural Park.
- 2018：
- Ding Yi Feng gala attended by Sarkozy, Hatoyama, and Rudd.
- March 2019：
- SFC halted trading in company shares over suspected market manipulation.
- January 2020：
- Share suspension lifted; SFC announced proceedings against company executives; Sui resigned as chairman.
- 2022：
- Pagoda at Changbai park completed.
- End of 2022：
- COVID-19 controls relaxed in China, leading to significant outflows from Ding Yi Feng investments.
- February 2023：
- Shenzhen government issued a risk warning regarding Ding Yi Feng.
- April to August 2023：
- Run on investments led to worsening liquidity at Ding Yi Feng.
- August 2023：
- Dividend payouts on most Ding Yi Feng products suspended or halved.
- November 2023：
- Shenzhen government issued second risk warning regarding Ding Yi Feng.
- December 2023：
- Ding Yi Feng liquidity problems deepened; Sui still attending investor lectures.
- By January 2024：
- Shenzhen Ding Yi Feng had already missed dividend payments on multiple products for several months.
- Early January 2024：
- Investors told they would not be able to redeem investments until September 2024 at the earliest.
- January 10, 2024：
- Letter to investors explained plans to list on an international digital asset exchange, requiring investments to be locked in until September 10, 2024.
- January 16, 2024：
- Ding Yi Feng said digital options listing was progressing and could start trading in three months.
- January 30, 2024：
- Company executive made a public morale-boosting speech at a morning meeting.
- February 1, 2024：
- Investors were to be able to receive quarterly dividends, according to plans earlier stated.
- February 26, 2024：
- Hong Kong SFC disclosed an investigation into alleged share manipulation by Sui and others.
- March 2024：
- SFC accused Sui and others of inflating trading volume of shares.
- By June 1, 2024：
- Investors were told they needed to convert their products to digital options or face restricted redemption until September 2024.
- July 2024：
- Park social media article published, stating 1.3 billion yuan had been invested in the cultural park.
- August 2024：
- Overdue dividends for this and September 2024 later promised to be paid.
- September 2024：
- Original earliest possible redemption date for certain investments.
- October 2024：
- HK SFC obtained a temporary asset freeze order against Sui and 11 others.
- October 2024：
- Ding Yi Feng proposed redemptions for small investors to complete by December 26, 2024, and for others within six months.
- October 2, 2024：
- This report was originally published.
- December 2024：
- New redemption plan announced promising to pay all overdue dividends from October and prepare to pay November dividends; redemptions postponed to late March 2025.
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