① *ST Pengbo announced on Monday that the company and the controlling shareholder have been investigated by the CSRC. Since November 11th, a total of 7 listed companies have announced that the company or related parties are under investigation by the CSRC (see table); ② The investigation notice letter dealt a heavy blow to multiple stocks, with ST Baoling limit down the day after the announcement, while Jinghuawei closed down more than 15%.
Cailian Press reported on November 23rd (editor Pingfang) that according to incomplete statistics, as of the time of publication in November, including *ST Pengbo, Jinghuawei, ST Baoling, Yuan Xing Energy, ST Jingang, J.S. Corrugating Machinery, and Shenzhen CDL Precision Technology, 7 A-share listed companies have announced that the company or related parties are under investigation by the CSRC. See details in the chart below:
In addition, it is worth noting that on November 15th, there was a rumor that "Hithink Royalflush has major bearish news, similar to illegal stock recommendations, under investigation, business suspended for several months." In response, the leading dragon stock in the 150 billion internet finance concept, Hithink Royalflush, urgently announced that the rumors of "illegal stock recommendations, under investigation" are inconsistent with the facts. Its subsidiary, Yun Software Company, is qualified for securities investment consulting, and there is no investigation of the company or its subsidiaries. However, Hithink Royalflush also announced that due to inadequate compliance control in the live streaming promotion process of Yun Software Company and the presence of implying recommended individual stocks and other situations, the Zhejiang Regulatory Bureau decided to take administrative supervision measures by ordering corrections and suspension of new customer additions for a period of 3 months.
▌Due to suspected illegal disclosure, 7 listed companies announced that the company or related parties are under investigation this month, with chip stock Jinghuawei included.
Mainly engaged in internet access and related value-added services business, *ST Pengbo announced on November 18th that the company and the actual controller Yang Xueping received the "Investigation Notice" issued by the CSRC on the same day due to suspected violations of information disclosure laws and regulations. Currently, the company's daily operations and business conditions are normal. *ST Pengbo also announced on the same day that it received the Qingdao Securities Regulatory Bureau's decision on administrative supervision measures. The decision pointed out issues such as inaccurate disclosure of the 2023 annual performance forecast, failure to disclose the establishment of wholly-owned subsidiaries, investment in shareholding companies, and sale of subsidiary matters, and decided to issue a warning letter to the company and its then Chairman Yang Xueping, then General Manager Lu Weituan, CFO Xu Zhangang, and then Secretary of the Board Wu Wentao.
It is noteworthy that *ST Pengbo announced on November 14th that the company's stock had hit the limit up for 8 consecutive trading days from November 5th to November 14th, with a price increase of 48.67%. Upon application, the company's stock was suspended from trading starting on November 15, 2024, until the resumption after the disclosure verification announcement. Subsequently, *ST Pengbo announced on November 19th that after verification, the company and its subsidiaries operate normally, with no significant changes in their main business. The company, its controlling shareholder Xinpengyun, and the actual controller Mr. Yang Xueping have not planned any major asset reorganizations, share issuances, acquisitions or other major information that should be disclosed but have not been disclosed. Resumed trading from November 20th.
In the secondary market, *ST Pengbo resumed trading on November 20th and hit limit down, with the stock price of *ST Pengbo having consecutive limit down for three trading days as of Friday's close.
High-performance analog and mixed-signal integrated circuit manufacturer Jinghuawei announced on November 15th that the company received the "Investigation Notice" issued by the CSRC, as the company is suspected of illegal information disclosure. The CSRC decided to investigate the company for information disclosure-related issues. Prior to this, Jinghuawei had been warned by regulatory authorities for prior accounting errors causing inaccurate financial information disclosure in the 2022 semi-annual and third quarter reports. The Shanghai Stock Exchange decided to issue regulatory warnings to the company, former CFO Zhou Rongxin, and former Chairman and acting CFO Lu Hanquan.
It is worth noting that Jinhua Micro's 2024 interim report was also questioned for information disclosure issues. On August 29, 2024, Jinhua Micro held a board meeting, and Director Luo Weishao voted against the "Proposal on the 2024 Interim Report and Summary", citing non-disclosure of the progress of the company's previous land acquisition discussions and other content. In response, the Shanghai Stock Exchange promptly issued the "Regulatory Work Letter on Matters Related to Director Objections to the Hangzhou Jinhua Microelectronics Co., Ltd. Interim Report" to Jinhua Micro, directors and senior management, controlling shareholders and actual controllers, intermediaries, and related personnel on the evening of August 30.
In terms of the secondary market, on the next trading day after Jinhua Micro's announcement being filed (November 18), the closing price plummeted by 15.31%. Looking back over a longer period of time, Jinhua Micro's stock price has soared by 140% from its low point on September 18 to date.
ST Baoling, a leading company in the research and development of traditional Chinese medicine, announced on November 8 that the company is under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws and regulations. The company stated that all production and operation activities are currently being carried out normally. Previously, on August 2, ST Baoling announced that the company and relevant personnel recently received an administrative supervisory measure decision issued by the Guizhou Securities Regulatory Bureau, which pointed out issues such as inaccurate expense attribution periods and significant deficiencies in internal controls, leading to inaccurate financial data disclosure for many years. The Guizhou Securities Regulatory Bureau decided to take regulatory measures ordering the company to correct the issues and record them in the securities and futures market integrity file. At the same time, regulatory conversations were conducted with the company's chairman Jiang Wei, general manager and board secretary Niu Min, CFO Li Hongxing, and then CFO Zheng Rong. In the secondary market, on the next trading day after the announcement was filed (November 11), ST Baoling hit limit down.
Yuan Xing Energy, a coal chemical concept stock, announced on November 8 that the company had received a "Notice of Filing" from the China Securities Regulatory Commission for allegedly failing to timely disclose a major lawsuit involving a subsidiary. In January 2021, Wushenqi State-Owned Assets brought a lawsuit to the court against the company and its subsidiary Mengda Mining for a contract dispute over the transfer of exploration rights, involving an amount of 2.106 billion yuan. On December 30, 2021, the court rendered a first-instance judgment, ordering Mengda Mining to pay the difference in the transfer of exploration rights of 2.224 billion yuan. The company did not disclose this lawsuit in a timely manner and only disclosed the related situation on April 12, 2022. Currently, the company's production and operation activities are normal, and this matter will not have a significant impact on the company's production and operation.
In November 2023, Yuan Xing Energy received a letter from Mengda Mining, requesting the company to fulfill the differential payment obligation for the transfer of exploration rights in accordance with the agreement from the equity transfer in 2009. In December of the same year, China Coal Energy informed the company through a letter that arbitration will be conducted by the China International Economic and Trade Arbitration Commission, demanding the company to pay the difference in exploration rights as well as various expenses totaling 2.331 billion yuan. In the 2023 annual report, Yuan Xing Energy had provisionally recognized a liability of 0.964 billion yuan for the arbitration matters. Due to the large provision made, Yuan Xing Energy's net income for 2023 decreased by 47% to 1.41 billion yuan. As of now, the arbitration matters have not been ruled on. As a protective measure in the arbitration process, 34% equity of Mengda Mining under Yuan Xing Energy's name has been frozen. Yuan Xing Energy stated that the impact of the arbitration matters on current or future profits is uncertain.
In terms of the secondary market, Yuan Xing Energy's announcement being filed resulted in a 4.48% drop on the following trading day (November 11).
