Securities regulators impose administrative penalties on five A-share companies on the same day for financial fraud and fund misappropriation

Regulation

โดย 中国经营报·Read original

Summary · why it matters

On July 17, securities regulators issued administrative penalty decisions or advance notices to five A-share companies on the same day. ST Hulubao, ST Yingfei, and ST Guangtang were involved in financial fraud, while ST Xinhuajin and Black Sesame were involved in fund misappropriation. ST Hulubao was fined 7 million yuan by the Hainan Securities Regulatory Bureau for false records in its 2023 annual report and 2024 semi-annual report, with responsible individuals fined a total of 14.5 million yuan. ST Yingfei faces a proposed fine of 5.5 million yuan from the Shenzhen Securities Regulatory Bureau because its subsidiary inflated revenue and profits, with nine responsible individuals facing proposed fines totaling 12 million yuan. ST Guangtang faces a proposed fine of 4 million yuan from the Guangxi Securities Regulatory Bureau due to false records in its annual report caused by cross-period revenue recognition at its subsidiary, with five responsible individuals facing proposed fines totaling 5.3 million yuan. ST Xinhuajin faces a proposed fine of 4.55 million yuan from the Qingdao Securities Regulatory Bureau for failing to disclose in a timely manner cumulative non-operating fund misappropriation by related parties amounting to 3.936 billion yuan. Its actual controller Zhang Jianhua faces a proposed fine of 6.1 million yuan, and seven other responsible individuals face proposed fines totaling 7.15 million yuan. Black Sesame was fined 1.8 million yuan by the Guangxi Securities Regulatory Bureau because its subsidiary had 186 million yuan of funds misappropriated by related parties for non-operating purposes without disclosure. Its then actual controller Wei Qingwen was fined 5 million yuan, and three other responsible individuals were fined a total of 1.9 million yuan. Experts interviewed said that multiple companies receiving penalties on the same day shows that regulators have achieved routine inspections and batch processing of listed companies' violations, sending a regulatory signal of zero tolerance, full coverage, and full accountability.