FCSC(SZ:002797) Nan Fang Du Shi Bao·2025-11-01 05:26Core Viewpoint - First Capital announced that its wholly-owned subsidiary, First Capital Securities Underwriting and Sponsorship Co., Ltd. (referred to as "Yichuang Investment Bank"), received a notice of investigation from the China Securities Regulatory Commission (CSRC) related to its involvement with the delisted company "Hongda Xingye" [2][3]. Group 1 - Yichuang Investment Bank is being penalized for failing to diligently supervise the 2019 convertible bond project of Hongda Xingye, which has faced multiple regulatory violations leading to its delisting [3][10]. - The CSRC's investigation was initiated on October 29, 2025, based on violations of the Securities Law and the Administrative Penalty Law of the People's Republic of China [3]. - First Capital emphasized its commitment to cooperate with the CSRC and adhere to regulatory disclosure requirements [6]. Group 2 - Hongda Xingye was listed on the Shenzhen Stock Exchange in June 2004 and faced significant negative news in recent years, including an investigation for information disclosure violations in September 2023 and triggering delisting rules in January 2024 due to its stock price falling below 1 yuan for twenty consecutive trading days [7][10]. - The company was officially delisted on March 18, 2024, but remains liable for its past actions [7]. - The Jiangsu Securities Regulatory Bureau identified three major violations by Hongda Xingye, including unauthorized changes to the use of raised funds, false records in financial reports, and failure to disclose significant legal and arbitration matters [10].