Jin Rong Shi Bao·2025-08-27 08:27Core Viewpoint - The regulatory authorities have taken strict actions against two listed companies, *ST Lingda and Xinhuajin, for the misuse of funds, highlighting the ongoing issue of fund occupation in the market [1][2]. Group 1: Regulatory Actions - *ST Lingda's former chairman and vice chairman are facing a total fine of 5 million yuan for their involvement in fund occupation [2]. - Xinhuajin has been ordered to rectify its issues within six months, failing which it may face delisting procedures [2][8]. Group 2: Fund Occupation Details - *ST Lingda reported a total of 65.6 million yuan in fund occupation, which constitutes 9.95% of its latest audited net assets [3][6]. - The company had unauthorized guarantees totaling 126 million yuan, representing 19.10% of its net assets [6]. - Xinhuajin disclosed that its actual controller's group has non-operationally occupied 406 million yuan of company funds [10]. Group 3: Implications of Fund Occupation - Fund occupation is defined as the act of major shareholders misusing their control over a listed company to divert funds, which harms the company's interests [11]. - The phenomenon often arises from shareholders seeking quick liquidity solutions to address debt risks, with inadequate internal controls and governance mechanisms facilitating such actions [12]. - Regulatory bodies have maintained a stringent enforcement stance against fund occupation, with 35 cases prosecuted in 2024 alone [12].