FCSC(SZ:002797) Zhong Guo Ji Jin Bao·2025-12-07 13:05Core Viewpoint - The investment bank Yichuang is facing administrative penalties for failing to diligently supervise the convertible bond project of Hongda Xingye, leading to warnings and fines from regulatory authorities [2][4][5]. Group 1: Administrative Penalties - Yichuang is proposed to be fined a total of 16.98 million yuan, which includes the confiscation of 4.25 million yuan in underwriting income and a fine of 12.74 million yuan [5]. - Two responsible underwriters, Fan Benyuan and Song Yao, are also facing individual fines of 1.5 million yuan each [5]. Group 2: Regulatory Findings - The China Securities Regulatory Commission (CSRC) found that Yichuang failed to adequately verify the use and repayment of raised funds, did not issue required verification opinions, and neglected its supervisory and reporting obligations [4][5]. - The violations are considered to breach the Securities Law of the People's Republic of China, specifically articles related to diligence and responsibility in underwriting [4]. Group 3: Impact on Hongda Xingye - Hongda Xingye, the issuer of the convertible bonds, is expected to default on the repayment of the bonds, which are due on December 16, 2025 [6][7]. - As of the announcement date, Hongda Xingye has not secured the necessary funds for the repayment of the principal and interest of the bonds [7]. - The total issuance of Hongda convertible bonds was 2.427 billion yuan, with 337 million yuan still outstanding and unable to be converted [8].