Core Viewpoint - The China Securities Regulatory Commission (CSRC) has initiated an investigation into First Capital Securities' subsidiary, Yichuang Investment Bank, for failing to diligently supervise the convertible bond project of Hongda Xingye Co., Ltd. in 2019, highlighting the regulatory body's commitment to enhancing oversight responsibilities [1][4][12]. Group 1: Regulatory Actions - Yichuang Investment Bank received a notice from the CSRC regarding the investigation due to alleged negligence in its supervisory duties related to the 2019 convertible bond project of Hongda Xingye [1][4]. - The CSRC's decision to investigate is based on violations of the Securities Law and the Administrative Penalty Law of the People's Republic of China [4][12]. - The investigation serves as a warning to other securities firms, emphasizing the need for improved quality control in their supervisory practices [2][8]. Group 2: Company and Project Background - In December 2019, Hongda Xingye issued 24.27 billion yuan worth of convertible bonds, with Yichuang Investment Bank acting as the lead underwriter [7][12]. - Hongda Xingye was delisted in March 2024 after its stock price fell below 1 yuan, triggering mandatory delisting regulations [11][12]. - The company faced significant penalties for misusing raised funds, with 16.91 billion yuan being improperly allocated, and for inflating financial statements, resulting in a total of 35.05 billion yuan in inflated revenue [8][9]. Group 3: Financial Performance - Despite the ongoing investigation, First Capital Securities reported a revenue of 2.985 billion yuan for the first three quarters of 2025, reflecting a year-on-year increase of 24.32% [13]. - The investment banking segment generated 197 million yuan in revenue during the same period, marking a 15.13% increase and accounting for 6.60% of the company's total revenue [13].

Core Insights - In October, 10 A-share IPO companies were reviewed and all were approved, marking a significant achievement for the IPO market [1] - The number of terminated IPOs in October was only 2, the lowest this year, indicating a positive trend in the IPO process [2] - A total of 9 companies successfully completed their IPOs in October, raising a combined total of 12.869 billion yuan [1][8] IPO Termination - The two companies that terminated their IPO processes in October were Beijing Kunlun Unicom Technology Development Co., Ltd. and Zhuzhou Keno New Materials Co., Ltd. [2][4] - Kunlun Unicom faced scrutiny regarding the authenticity of its revenue and customer relationships during its IPO applications [3][4] - Zhuzhou Keno's application raised questions about its innovation attributes, with its R&D investment being just above the minimum requirement [5] Successful IPOs - In October, 9 companies raised a total of 12.869 billion yuan, with Xi'an Yicai-U raising the highest amount at 4.636 billion yuan [7][8] - Notably, several companies listed in October, including Xi'an Yicai-U and He Yuan Biology-U, reported fundraising amounts exceeding 1 billion yuan [8] - Dao Sheng Tian He had a notably high issuance cost rate of 12.89%, which was higher than its peers [8][9] Underwriting and Brokerage - From January to October, 87 companies successfully completed their IPOs, raising a total of 90.172 billion yuan, with 34 brokerages sharing the underwriting fees [11][14] - CITIC Securities led the underwriting with 12 companies and raised 12.827 billion yuan, followed by Guotai Junan and Huatai United Securities [12][14] - Notably, some brokerages, such as First Capital and Dongguan Securities, reported zero underwriting revenue in 2025 [15]

Core Viewpoint - The article discusses the regulatory actions taken against Yichuang Securities' subsidiary, Yichuang Investment Bank, due to its failure to diligently supervise the convertible bond project of Hongda Xingye, highlighting the need for enhanced oversight in the investment banking industry [1][5]. Group 1: Regulatory Actions - On October 31, Yichuang Securities announced that its subsidiary received a notice from the China Securities Regulatory Commission (CSRC) regarding an investigation into its supervisory responsibilities related to Hongda Xingye's 2019 convertible bond project [1][5]. - The investigation stems from Yichuang Investment Bank's alleged failure to fulfill its supervisory duties during the continuous supervision period of the convertible bonds [1][6]. Group 2: Hongda Xingye's Financial Issues - Hongda Xingye issued 24.27 billion yuan worth of convertible bonds in December 2019, which were later subject to significant financial irregularities, including unauthorized changes in the use of raised funds amounting to 16.91 billion yuan [5][6]. - The company was found to have inflated its revenue by 35.05 billion yuan and profits by 40.78 billion yuan from 2020 to 2022, leading to false disclosures in its financial reports [6][8]. Group 3: Consequences and Penalties - Hongda Xingye was delisted in March 2024 after its stock price fell below 1 yuan for twenty consecutive trading days, and it faced administrative penalties totaling 57.8 million yuan from the Jiangsu Securities Regulatory Bureau [1][7]. - Key executives, including the controlling shareholder Zhou Yifeng, received lifetime bans from the securities market, while the financial director faced a 10-year ban [7][8]. Group 4: Yichuang Securities' Performance - Despite the regulatory scrutiny, Yichuang Investment Bank reported a significant increase in its investment banking activities, with a 296.64% year-on-year growth in underwriting amounts, totaling 25.27 billion yuan in the first half of the year [9]. - For the first three quarters of 2025, Yichuang Securities achieved a revenue of 2.985 billion yuan, reflecting a 24.32% increase year-on-year, with investment banking contributing 1.97 billion yuan, a 15.13% increase [9].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has initiated an investigation into First Capital Securities' subsidiary, Yichuang Investment Bank, for failing to diligently oversee the convertible bond project of Hongda Xingye Co., Ltd. in 2019, highlighting the importance of regulatory compliance in the investment banking sector [1][2][5]. Group 1: Regulatory Actions - Yichuang Investment Bank received a notice from the CSRC regarding the investigation due to alleged negligence in its continuous supervision duties related to the 2019 convertible bond project [1][2]. - The investigation serves as a warning to other brokerage firms and is expected to enhance the industry's quality control and supervision practices [2][5]. Group 2: Company Background and Financials - Hongda Xingye issued 24.27 billion yuan worth of convertible bonds in December 2019, with a total of 24.27 million bonds issued at a face value of 100 yuan each [5]. - The company was delisted in March 2024 after its stock price fell below 1 yuan, triggering mandatory delisting regulations [7]. - In the first three quarters of 2025, First Capital Securities reported a revenue of 2.985 billion yuan, a year-on-year increase of 24.32%, and a net profit of 771 million yuan, up 20.21% [8]. Group 3: Legal and Financial Violations - Hongda Xingye was found to have misused 1.691 billion yuan of raised funds and inflated its revenue by 3.505 billion yuan, leading to significant legal repercussions for the company and its executives [6][7]. - The Jiangsu Securities Regulatory Bureau imposed fines totaling 57.8 million yuan on Hongda Xingye and its responsible individuals, with the company's actual controller facing a lifetime ban from the securities market [2][7]. Group 4: Market Impact - The ongoing investigation into Yichuang Investment Bank is expected to impact its market reputation, despite the firm achieving significant growth in its investment banking business, including a 296.64% increase in total underwriting amount in the first half of the year [8].

Key Points - A new stock subscription is available today [1] - The State Council meeting on October 31 focused on deepening reforms in key areas and expanding institutional openness [3] - The Ministry of Finance and the State Taxation Administration announced tax policies related to gold trading, exempting VAT until the end of 2027 for certain transactions [3] - The China Securities Regulatory Commission released draft guidelines for the performance benchmarks of publicly offered securities investment funds [4] - A significant breakthrough in nuclear energy was reported, with China achieving thorium-uranium fuel conversion based on molten salt reactors [4] - The China Listed Companies Association reported improved performance among listed companies, highlighting the role of innovation and structural upgrades [5] - The 15th National Games torch relay featured a humanoid robot "Kua Fu" as a torchbearer, marking a global first [5] - Anshi China has established sufficient inventory to meet customer demand through the end of the year and beyond [7] - Vanke A is set to receive a loan of up to 22 billion yuan from Shenzhen Metro Group [7] - Long-term growth in new energy vehicle sales was reported for Chang'an Automobile and Seres [7] - Great Wall Motors reported October sales of 143,100 vehicles, a year-on-year increase of 22.5% [8] - ST Yifei signed an overseas procurement order worth approximately 190 million yuan [9] - Tianqi Co. signed a strategic cooperation framework agreement with Foxconn Automotive [10] - Several companies are undergoing significant changes, including mergers and acquisitions, and stock repurchases [13][14][15][16]

10月31日晚间，第一创业发布公告，其全资子公司第一创业证券承销保荐有限责任公司（以下简称"一 创投行"）已于当日收到中国证监会的《立案告知书》。此次立案所涉事项，正是一桩已退市公司的陈 年旧案——鸿达兴业2019年可转债项目。公告明确指出，立案原因是一创投行在该项目中"涉嫌持续督 导业务未勤勉尽责"。 鸿达兴业已于2024年3月被摘牌退市，但这并不意味着相关方的责任就此终结。就在2025年6月，江苏证 监局查实，鸿达兴业在2019年可转债发行后，存在严重财务造假和违规行为，包括擅自改变募集资金用 途达16.91亿元，以及在2020年至2023年间合计虚增利润总额高达40.78亿元。该案最终以鸿达兴业及相 关责任人合计被罚5780万元、实控人周奕丰被处以终身市场禁入告终。如今，监管的目光正式转向了当 年的保荐机构。第一创业方面回应记者称，此系"历史项目"，目前公司与子公司经营情况正常。 监管"倒查"：第一创业子公司 因2019年历史项目被立案 《立案告知书》显示，因一创投行在鸿达兴业2019年可转债项目中，涉嫌持续督导业务未勤勉尽责，中 国证监会于2025年10月29日决定对一创投行立案。据记者了解，一创投行 ...

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has initiated an investigation into First Capital's investment banking subsidiary for failing to diligently oversee the convertible bond project of Hongda Xingye Co., Ltd. in 2019, highlighting the ongoing responsibility of underwriters throughout the bond's lifecycle [1][11]. Group 1: Company Actions and Responsibilities - First Capital's investment banking arm will actively cooperate with the CSRC and adhere to regulatory disclosure obligations, stating that its current operations remain normal [2]. - The investment bank had previously issued a warning regarding the risk of default on the convertible bonds issued by Hongda Xingye, indicating significant uncertainty about the company's ongoing viability [2][11]. Group 2: Financial Details of Hongda Xingye - In December 2019, Hongda Xingye issued 24.27 billion yuan worth of convertible bonds, with a maturity of six years, and as of March 18, 2024, 337 million yuan of these bonds remained outstanding [3]. - The company’s stock was delisted on March 18, 2024, after its share price fell below 70% of the conversion price for 23 consecutive trading days, leading to concerns about its ability to meet bond redemption obligations [4][11]. - As of the bankruptcy ruling, Hongda Xingye had total assets of 9.964 billion yuan and total liabilities of 33.845 billion yuan, resulting in a net asset deficit of 23.881 billion yuan [9]. Group 3: Regulatory and Market Implications - The case underscores the regulatory trend of holding underwriting institutions accountable for their ongoing supervisory responsibilities, warning other firms to enhance their diligence in continuous oversight [1][11]. - The market has begun to reflect on the responsibilities of intermediary institutions amid Hongda Xingye's financial collapse, emphasizing the need for investment banks to maintain a high level of diligence in their supervisory roles [11].

Core Points - The core issue revolves around the regulatory actions taken against First Entrepreneurship's subsidiary, Yi Chuang Investment Bank, for failing to diligently supervise the convertible bond project of Hongda Xingye in 2019 [1][9][12] - The incident highlights the increasing scrutiny and accountability of brokerage firms regarding their continuous supervision responsibilities [11][13] Group 1: Regulatory Actions - On October 31, First Entrepreneurship announced that its subsidiary Yi Chuang Investment Bank received a notice of investigation from the China Securities Regulatory Commission (CSRC) due to alleged negligence in its supervisory duties [1] - The Chongqing Securities Regulatory Bureau also issued two penalties on the same day, including a warning letter to the Chongqing branch of Bank of China Securities and corrective measures against a securities practitioner named Peng Yi [3][6] Group 2: Violations and Penalties - Hongda Xingye was previously penalized for serious violations of information disclosure laws, resulting in a total fine of 57.8 million yuan (approximately 8.2 million USD) [9][10] - Key individuals involved in the violations, including the actual controller Zhou Yifeng, received severe penalties, including lifetime bans from the securities market [9][10] Group 3: Industry Implications - The case against Yi Chuang Investment Bank is indicative of stricter enforcement of continuous supervision responsibilities within the brokerage industry, with 42 penalties issued for similar violations affecting 22 brokerage firms in 2024 alone [11] - The industry is anticipating the implementation of new regulations for continuous supervision, which aim to establish clearer standards and guidelines for brokerage firms [11][12]

Core Viewpoint - First Capital's subsidiary, Yichuang Investment Bank, is under investigation by the China Securities Regulatory Commission (CSRC) for failing to diligently supervise the 2019 convertible bond project of Hongda Xingye, highlighting the ongoing responsibilities of investment banks in continuous supervision [2][3][15]. Group 1: Investigation Details - Yichuang Investment Bank received a notice from the CSRC regarding the investigation due to alleged negligence in continuous supervision during the Hongda Xingye convertible bond project [2][3]. - The investigation reflects a regulatory trend emphasizing the accountability of underwriting institutions in their ongoing supervisory roles [2][15]. Group 2: Background on Hongda Xingye - Hongda Xingye issued 24.27 billion yuan worth of convertible bonds in December 2019, with a maturity of six years, and has since faced significant financial difficulties [6][12]. - As of March 18, 2024, Hongda Xingye's remaining convertible bond amount is 337 million yuan, and the company has been delisted due to continuous stock price declines [6][9]. Group 3: Financial Status and Risks - Hongda Xingye's financial situation is dire, with total assets of 9.964 billion yuan and total liabilities of 33.845 billion yuan, resulting in a net asset deficit of 23.881 billion yuan [14]. - The company has defaulted on multiple bonds, totaling 4.465 billion yuan, and is undergoing bankruptcy proceedings with a total debt of 19.075 billion yuan [12][14]. Group 4: Regulatory Actions and Implications - The CSRC has previously penalized Hongda Xingye for misusing raised funds and failing to disclose significant legal matters, leading to a broader scrutiny of the responsibilities of intermediary institutions [15]. - The case serves as a warning to other investment banks about the importance of diligent ongoing supervision to protect investors' interests [7][15].

据悉，一创投行被罚与已经退市的"鸿达兴业"相关，后者在此前已经因多项违规问题受到证监会的行政 处罚。 一创投行被罚事关"看门人"责任 据悉，因一创投行在鸿达兴业股份有限公司2019 年可转债项目中，涉嫌持续督导业务未勤勉尽责，根 据《中华人民共和国证券法》《中华人民共和国行政处罚法》等法律法规，2025年10月 29日，中国证 监会决定对一创投行立案。 10月31日晚，第一创业发布公告称，公司全资子公司第一创业证券承销保荐有限责任公司（以下简 称"一创投行"）于2025年10月31日收到中国证监会《立案告知书》。 第一创业同时强调称，一创投行将积极配合中国证监会的相关工作，公司将严格按照监管要求履行信息 披露义务。 东方财富APP数据显示，鸿达转债上市日期为2020年1月8日，后于2024年3月18日摘牌。其发行规模为 24.27亿元，存续期限为6年，一创投行为鸿达转债的保荐机构（主承销商）。 鸿达兴业擅自改变募资用途 鸿达兴业于2004年6月在深交所上市。在近年来，公司负面消息不断：2023年9月，鸿达兴业因涉嫌信息 披露违规被中国证监会立案调查；2024年1月，鸿达兴业股票收盘价连续二十个交易日低于1元/ ...