In Depth: Investment Guru’s Supernatural Powers Haven’t Made His Followers Whole

Sui Guangyi, hailed by his followers as a visionary investor, applied Taoist, Zen Buddhist, and I Ching principles to wealth management. For over a decade, his investors entrusted their savings into high-yield products promising returns as high as 160% annually. Yet, the aspiration for excessive wealth led to significant losses when redemption of investments and dividend payments was suspended [para. 1][para. 2].

By January 2023, investors began demanding their money back after being told redemptions were postponed until September at the earliest. In a letter dated Jan. 10, the company announced plans to list on an international digital asset exchange with locked investments until then. They assured quarterly dividends from Feb. 1, including partial payments in digital options. However, the company, already behind on several dividend payments, had around 130 billion yuan ($18 billion) in outstanding liabilities [para. 3][para. 4][para. 5].

Despite the financial woes, some followers believed in Sui's long-term vision. Sui's journey from a humble background to an investment guru began in the 1960s in rural Northeast China. He worked in a mine post-vocational school before venturing into business in 1986, eventually becoming deputy mayor of Dunhua by 1994. In 1997, dissatisfied with his path, he became a Taoist monk, meeting Ma Xiaoqiu, his future business partner [para. 6][para. 7][para. 8].

Sui's mysticism and spirituality played a significant role in his investment decisions. In 2015, he dreamt of symbols he interpreted as pointing to a specific stock, leading him to acquire significant shares in China Investment Fund International Holdings Ltd., later renamed China Ding Yi Feng Holdings Ltd. This company was listed in MSCI and Hang Seng indexes before being removed due to a stock manipulation scandal in 2019 [para. 8][para. 9][para. 10].

The group marketed wealth management products with returns between 20% to 160%, which included fixed-term and pre-IPO shares and options. They claimed to invest in various sectors like information, health care, and gold. Products came with different maturities, some locked for up to 20 years. Many products were issued through numerous registered companies managed by Ding Yi Feng's core team [para. 10][para. 11][para. 12].

Sui successfully cultivated an image of a spiritually enlightened financial master, claiming protection from the Big Dipper and creating the "Zen I investment method." He regularly lectured on spirituality and investment advice, attracting many followers. His charisma and spiritual teachings convinced numerous investors to commit substantial sums [para. 13][para. 14][para. 15].

Sui was adept at public relations, inviting prominent global figures to his events, and maintaining strong relationships with investors. Ding Yi Feng staff built personal bonds with clients, encouraging more investments and referrals. High commissions and promises of regular, albeit often delayed, dividends kept the funds flowing [para. 16][para. 17][para. 18][para. 19][para. 20].

The realities of Sui's ventures began to surface as the business unravelled amidst allegations of illegal fundraising and poor financial management. Accusations of employing a Ponzi scheme model came to light as they struggled to pay dividends and redeem investments [para. 24][para. 25]. Despite multiple redemption plans and new promises, many investors felt betrayed by the constant postponements [para. 28].

The group's troubles worsened when the Hong Kong Securities and Futures Commission (SFC) launched an investigation in February 2023 into alleged share manipulation in 2018. Previous suspensions and ongoing probes added to the instability. Sui and other top executives left their positions amidst the turmoil in early 2023 [para. 32][para. 33][para. 34].