Jiangsu Nanfang Medical(SH:603880) 2 1 Shi Ji Jing Ji Bao Dao·2025-11-07 10:33Core Viewpoint - The case of Nanwei Co., Ltd. highlights the increasing regulatory scrutiny and the critical role of auditing firms in preventing insider trading and financial misconduct, emphasizing a "zero tolerance" approach in the capital market [1][5][7]. Group 1: Regulatory Actions and Consequences - Nanwei's chairman Li Ping and CFO Xiang Qinhua were fined nearly 50 million yuan for insider trading, marking a significant regulatory action following a two-year investigation [1][5]. - The investigation was triggered by Tianheng Accounting Firm's discovery of suspicious fund usage in the "construction in progress" account, leading to a denial opinion report that resulted in Nanwei's stock being marked as ST (special treatment) [1][4][5]. - Li Ping sold 8.184 million shares, avoiding losses of approximately 11.77 million yuan, while Xiang Qinhua also sold shares during the sensitive period [3][5][6]. Group 2: Auditing Firm's Role - Tianheng's audit team identified irregularities and maintained a firm stance against Nanwei's management, ultimately leading to the issuance of a negative audit opinion [2][3][4]. - The audit firm’s refusal to compromise and its insistence on professional integrity played a crucial role in uncovering the insider trading activities [5][10]. - The case illustrates that auditing firms are no longer mere rubber stamps but are essential in enforcing compliance and protecting investor interests [5][10]. Group 3: Industry Implications - The case reflects a broader trend in regulatory practices, emphasizing the importance of strict oversight and accountability for both companies and their executives [7][8]. - The regulatory environment has shifted towards a dual penalty system, where both the company and responsible individuals face consequences for violations, increasing the cost of non-compliance [8][9]. - The industry is undergoing a transformation, with auditing firms enhancing their internal controls and risk management practices to adapt to the stringent regulatory landscape [9][10].