Biography/ Journey of Xu Xiang : Former Hedge Fund Manager
Biography of Xu Xiang :
Xu Xiang, born in February 1977 in Ningbo, Zhejiang, was
once a prominent figure in China's investment world. He served as the General
Manager of Zexi Investment, a well-known Chinese investment firm. Dubbed as
"China's Carl Icahn," "China's Warren Buffett," and
"Big Man of Private Placement," Xu Xiang garnered attention for his
investment strategies and successes.
However, Xu's career took a dramatic turn on November 1,
2015, when he was arrested by the police on charges of insider trading. This
arrest marked a significant downfall for Xu Xiang, once celebrated for his
financial acumen and bold investment decisions.
In 2017, Xu Xiang faced the consequences of his actions as
he was sentenced to five and a half years in prison. Additionally, he was fined
a staggering 11 billion yuan, highlighting the severity of the legal
repercussions for insider trading in China. Despite his earlier acclaim and
comparisons to iconic investors like Carl Icahn and Warren Buffett, Xu Xiang's
story serves as a cautionary tale about the risks and consequences of illegal
financial practices in the investment world.
Biography/ Journey of Xu Xiang : Former Hedge Fund Manager / Life lessons / Strategies / Rise and fall / Investing / Trader
Xu Xiang: From Early Ventures to Shanghai Success
Early Life and Stock Market Beginnings
Xu Xiang, born in Ningbo, Zhejiang in 1977, began his
investment journey early, skipping college entrance exams in 1993 to trade
stocks. Initially using capital from his parents, he gained prominence as one
of Zhejiang's top investors before 2000, managing several hundred thousand
yuan.
Early Beginnings and Provincial Success
Xu Xiang, once hailed as "China's Carl Icahn,"
made his mark in the investment world with his sharp acumen and bold
strategies. Born into privilege in Ningbo, Zhejiang, Xu's fascination with
stocks began early in high school. At just 17, he skipped university entrance
exams to dive into trading, using initial capital from his parents. By the late
1990s, he had established himself as Zhejiang's foremost hedge fund investor.
Establishing Zexi Investment in Shanghai
Moving to Shanghai in 2005 proved pivotal for Xu, where he
founded Zexi Investment in 2009 with 30 million yuan. Despite the volatility of
China's stock market, Xu's funds achieved remarkable success, generating 300%
gains for select funds amid market downturns. Today, managing nearly 20 billion
yuan in assets, Xu is revered as China's top hedge fund manager, his diligence
and dedication earning him widespread respect among colleagues.
Diligence and Strategic Insights
Xu Xiang's success is attributed to his relentless work
ethic and meticulous approach. Known for his disciplined routine of starting
work promptly at 8:45 am and studying stocks late into the night, Xu eschewed
vices like smoking and drinking. His singular focus on stock research and
analysis, guided by comprehensive reports rather than company visits,
underscored his methodical investment philosophy.
A testament to Xu's shrewdness was his ability to swiftly
pivot investment decisions based on changing market dynamics. Known for making
split-second reversals, Xu could opportunistically buy into distressed stocks
like Chongqing Beer Group after sudden declines, turning substantial profits.
Despite occasional losses, Xu's strategy of doubling down on promising firms or
swiftly liquidating underperforming stocks underscored his adaptability and
risk management skills.
Xu Xiang's journey from a provincial trader to a Shanghai
mogul embodies the essence of strategic investing in China's dynamic financial
landscape. His legacy, tarnished by allegations of insider trading and
subsequent detention, serves as a cautionary tale of the high stakes and risks
inherent in the world of high finance.
Shanghai Career and Business Expansion
In 2005, Xu Xiang relocated to Shanghai, where he immersed
himself in stock trading. Known for his rigorous schedule—starting work early
and often studying stocks late into the night—he founded Zexi Investment in
2009 with 30 million yuan. Under his leadership, funds like Zexi No. 1 and Zexi
No. 3 saw remarkable growth, reportedly increasing by about 3,000% since 2010.
His success amassed a substantial fortune for himself and his relatives,
totaling US$2.2 billion.
Controversies and Legal Issues
Rumors of regulatory scrutiny emerged in July 2011, alleging
investigations into Zexi Investment's operations. Xu Xiang denied any
wrongdoing at the time. However, in 2015, during a stock market crash, he faced
allegations of market manipulation, marking a turning point in his career and
leading to subsequent legal challenges.
Xu Xiang: The Journey from Provincial Trader to Shanghai
Mogul
Early Life and Stock Market Beginnings
Xu Xiang's journey into the world of finance began unexpectedly
when he bypassed college exams in 1993 to dive headfirst into stock trading in
Ningbo, Zhejiang. Initially funded by his parents, he swiftly rose to
prominence as a skilled investor, managing significant sums of money by the
turn of the millennium.
Shanghai Career and Business Expansion
By 2005, Xu Xiang had relocated to Shanghai, a move that
marked a pivotal moment in his career. Known for his tireless work ethic and
deep immersion in stock analysis, he founded Zexi Investment in 2009 with an
initial capital of 30 million yuan. Under his guidance, funds like Zexi No. 1
and Zexi No. 3 achieved astounding growth, reportedly increasing in value by
approximately 3,000% since 2010. His achievements contributed to a combined
family fortune estimated at US$2.2 billion.
Controversies and Legal Issues
Despite his success, Xu Xiang's career was marred by
controversy. In July 2011, rumors surfaced of regulatory investigations into
Zexi Investment, though Xu vehemently denied any illegal activities. However,
the peak of his troubles came in 2015 during a tumultuous stock market crash.
Accusations of market manipulation surfaced, casting a shadow over his
reputation and resulting in significant legal battles that altered the course
of his career and life.
