Mei Ri Jing Ji Xin Wen·2025-10-31 15:43Core Viewpoint - The China Securities Regulatory Commission (CSRC) has initiated an investigation into First Capital Securities' subsidiary, Yichuang Investment Bank, for alleged negligence in its supervisory duties related to the 2019 convertible bond project of Hongda Xingye, which has since been delisted [1][2][7]. Group 1: Investigation Details - The investigation stems from Yichuang Investment Bank's involvement in the 2019 convertible bond project of Hongda Xingye, where it allegedly failed to diligently supervise the issuance process [2][4]. - Hongda Xingye was delisted in March 2024 due to severe financial fraud and regulatory violations, including unauthorized changes to the use of raised funds amounting to 1.691 billion yuan and inflated profits totaling 4.078 billion yuan from 2020 to 2023 [1][5][7]. - The CSRC's investigation reflects a broader regulatory trend of holding intermediary institutions accountable for their roles in financial misconduct [7]. Group 2: Financial Performance - Despite the ongoing investigation, First Capital Securities reported a revenue of 2.985 billion yuan for the first three quarters of 2025, marking a year-on-year increase of 24.32%, with a net profit of 771 million yuan, up 20.21% [2][3]. - In the investment banking segment, Yichuang Investment Bank generated revenue of 197 million yuan, a 15.13% increase year-on-year, accounting for 6.60% of the company's total revenue [2]. Group 3: Future Business Focus - Yichuang Investment Bank is focusing on initial public offerings (IPOs) on the Beijing Stock Exchange, having successfully submitted one IPO application in the first half of 2025, with two additional projects under review as of June 2025 [3]. - The impact of the ongoing investigation on Yichuang Investment Bank's current operations, particularly its IPO activities, remains to be seen [3].