Western Lead Fund Responds: Dismisses Fund Manager and Terminates Employment Contract

Recently, news about “a fund manager being taken away by police due to gambling” has attracted widespread attention in the industry.

The information originated from an administrative penalty decision published on the official website of the Shanghai Changning Public Security Bureau. The content shows that on September 8, 2025, Xie * Zeng was administratively detained for ten days and fined 500 RMB by the Shanghai Public Security Bureau Changning Branch for participating in gambling. The chips involved in the case were confiscated according to law.

According to Article 82 of the “Public Security Administration Punishment Law of the People’s Republic of China”, those who provide conditions for gambling for profit, or participate in gambling with relatively large amounts of money, shall be detained for up to five days or fined up to 1,000 RMB; if the circumstances are serious, they shall be detained for between ten and fifteen days and also fined between 1,000 and 5,000 RMB.

On September 18, rumors began circulating within the industry that the person involved was Xie Wenzeng, a bond fund manager at Western Lead Fund.

It sparked market controversy that, although many reports pointed to Xie Wenzeng as the person penalized, Western Lead Fund, prior to September 24, still responded with “no knowledge, no comment” and did not issue any clarification announcement.

It was not until the afternoon of September 25 that the company confirmed that the person involved in the gambling incident was indeed its fund manager, Xie Wenzeng.

Subsequently, Western Lead Fund issued a public announcement stating that on September 7, Xie Wenzeng requested two weeks of leave from the company, which authorized other fund managers to manage his products. He returned to work on September 19. On the same day, the company became aware of the related public sentiment and immediately froze his fund manager operation permissions and began verifying the relevant situation. After confirmation with the individual and prudent verification, Xie Wenzeng committed the illegal act of gambling at a hotel on Xianxia Road in Changning District, Shanghai, around 3:00 PM on Sunday, September 7, 2025.

“Based on the above situation, the company made relevant accountability decisions on September 25, dismissing him from his position as fund manager and terminating his labor contract. In the future, the company will further strengthen the management of professional conduct for its employees, reinforce responsibility, consistently adhere to the investor-first principle, and continuously improve management capabilities,” Western Lead Fund stated.

Xie Wenzeng Confirmed Participation in Gambling; Managed 2 Funds Prior to Incident

According to the China Securities Regulatory Commission’s “Guidance on the Management of Investment Management Personnel of Fund Management Companies,” if investment management personnel are investigated or dealt with by relevant authorities for suspected violations of law or discipline, the Chief Compliance Officer should report to the CSRC within 3 working days of learning about it, and the fund company should also suspend or dismiss them from their position.

Xie Wenzeng holds a Ph.D. in Management Science and Engineering from Fudan University. He previously served as Deputy Director of the Financial Services Office in Changge City, Henan Province. He later transitioned from civil service into the financial industry, working first as a trader at Zhongyuan Bank, and then as an investment manager at Zhongyuan Securities and Debond Securities.

After formally entering investment in 2016, he gradually accumulated practical experience and joined Western Lead Fund in October 2022. On April 18 this year, he stepped down from managing two bond funds. Prior to stepping down, his management scale had reached the tens of billions level, once exceeding 17.6 billion RMB at the end of 2024. As of the end of the second quarter this year, Xie Wenzeng’s assets under management were 3.522 billion RMB.

Currently, Xie Wenzeng managed two bond funds: Western Lead Heying and Western Lead Fengrui Interest Rate Bond. Looking at the performance of Western Lead Heying A, the fund he managed for the longest time, his investment performance ranked in the middle to lower tier among similar products.

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Public Security Administration Punishment Law of the People’s Republic of China

The Public Security Administration Punishment Law of the People’s Republic of China is a legal statute that governs minor offenses and public order infractions. It was first promulgated in 1957, with the current version revised and adopted in 2012, establishing administrative penalties for acts that disrupt social order but do not constitute crimes. The law serves as a key instrument for maintaining daily public security and social stability.

Shanghai Changning Public Security Bureau

The Shanghai Changning Public Security Bureau is a local police authority responsible for law enforcement and public safety within the Changning District of Shanghai. As a modern administrative institution, its history is tied to the development of the district’s civic infrastructure following the establishment of the People’s Republic of China. It functions to maintain order, provide citizen services, and implement the policies of the municipal government.

Xianxia Road

Xianxia Road is a major thoroughfare in the Changning District of Shanghai, China. Historically, the area was part of the city’s western outskirts, but it has developed significantly since the 1990s, becoming a modern commercial and residential hub. It is now well-known for being home to the Gubei area, which features a large international community and numerous diplomatic residences.

Changning District

Changning District is a central urban district of Shanghai, China, known for its international atmosphere and role as a major transportation hub. Historically a suburban area, it developed rapidly in the 20th century and is now home to the Shanghai Hongqiao International Airport and the Hongqiao Economic and Technological Development Zone. The district is also recognized for its significant expatriate community and lush green spaces like Zhongshan Park.

Shanghai

Shanghai is a major global financial hub and China’s most populous city, located on the southern estuary of the Yangtze River. Its modern history began as a treaty port after the First Opium War, rapidly growing into an international center of trade and finance in the 1920s and 30s. The city is renowned for its iconic skyline, featuring landmarks like the Bund and the Lujiazui financial district.

China Securities Regulatory Commission

The China Securities Regulatory Commission (CSRC) is the main regulatory body overseeing China’s securities and futures markets, established in 1992. It was created to develop a regulated financial framework as China transitioned to a more market-oriented economy. The CSRC’s role is to enforce rules, protect investors, and maintain stable and orderly capital markets.

Fudan University

Fudin University is a prestigious public research university located in Shanghai, China. It was founded in 1905 as Fudan Public School, initially focusing on liberal arts, and has since grown into a comprehensive institution. The university is a member of the elite C9 League and is renowned for its significant contributions to academia and research.

Changge City

Changge City is a county-level city in Henan Province, China, with a history dating back over a thousand years. It was historically a significant area during the Spring and Autumn and Warring States periods. Today, it is known as a major production base for electrical components and hardware.