Zhong Guo Ji Jin Bao·2025-10-31 15:12Core Viewpoint - A Chinese investment bank, First Entrepreneurship, is under investigation by the China Securities Regulatory Commission (CSRC) for failing to diligently supervise its business operations related to a convertible bond project involving Hongda Xingye Co., Ltd. [2][5] Group 1: Investigation Details - First Entrepreneurship's subsidiary, First Entrepreneurship Securities, received a notice of investigation from the CSRC on October 31, 2025, regarding its role in the 2019 convertible bond project for Hongda Xingye [2][5] - The CSRC's decision to investigate was based on allegations that First Entrepreneurship did not fulfill its supervisory responsibilities during the project [5] Group 2: Background on Hongda Xingye - Hongda Xingye's convertible bonds, which were issued in December 2019, had a total issuance size of 2.427 billion yuan and a duration of six years [5] - The company, primarily engaged in the production and sale of chemical products such as polyvinyl chloride (PVC) and caustic soda, faced delisting in March 2024 due to stock price issues [5] Group 3: Regulatory Actions - In June 2025, the Jiangsu Securities Regulatory Bureau imposed administrative penalties on Hongda Xingye and eight related individuals, including fines totaling 18.5 million yuan for misusing raised funds [6] - The actual controller of Hongda Xingye, Zhou Yifeng, received a lifetime ban from the securities market, while the financial director, Lin Guisheng, was banned for ten years [6] - The company was found to have made false disclosures in its financial reports and failed to timely disclose significant legal and arbitration matters [6]