Sichuang Zhilian announced after market close on September 2 that the company and seven defendants, including then-chairman Zhang Lizhong, have been prosecuted by the Hangzhou People's Procuratorate in Zhejiang Province on suspicion of fraudulent securities issuance and illegal disclosure or non-disclosure of important information. Prosecutors allege that Sichuan Zhilian fabricated major false content in its prospectus and publicly issued bonds involving a huge amount, with Zhang Lizhong as the principal offender and the other six executives as accomplices. In early trading on September 3, Sichuan Zhilian's share price opened lower and fell further, closing the morning session at 2.81 yuan per share, down 11.36%. The case stems from the company's issuance of convertible bonds in 2020, with CITIC Securities as the sponsor. The Shenzhen Stock Exchange has issued a regulatory letter to CITIC Securities and given a notice of criticism to the then sponsor representatives Ma Qiwei and Xu Feng. Wind data shows that, by issuance date, CITIC Securities has underwritten convertible bond projects totaling about 14 billion yuan since 2026, far exceeding second-place Huatai Securities.
Hangzhou Century Co LtdCompany and executives prosecuted for fraudulent issuance, shares fell over 11%.
CITIC Securities Co LtdCITIC Securities, as sponsor, received regulatory letter from Shenzhen Stock Exchange due to fraudulent issuance case.
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