Guizhou Zhenhua E-chem (SH:688707) Mei Ri Jing Ji Xin Wen·2025-12-09 12:59Core Viewpoint - A senior underwriter from a leading brokerage firm, Du Pengfei, faces severe legal consequences for allegedly engaging in "sudden shareholding" during the IPO project of Zhenhua New Materials, with the prosecution suggesting a prison sentence of 10 to 11 years for bribery, despite the involved amount being 4.1 million yuan [1][2]. Group 1: Case Details - Du Pengfei, the former executive general manager of the investment banking business management committee at a top brokerage, was involved in the IPO of Zhenhua New Materials, which successfully listed on the Sci-Tech Innovation Board in September 2021 [2][3]. - The case has drawn significant attention due to the heavy sentencing recommendation and the complex circumstances surrounding the alleged bribery, including the issuer's proactive solicitation for assistance [4][5]. - The prosecution's case is based on the assertion that Du Pengfei utilized his position to gain economic benefits, which constitutes "transaction-type bribery" under Chinese law [7]. Group 2: Financial Implications - The total amount involved in the case is reported to be 4.1 million yuan, with Du Pengfei personally receiving approximately 2 million yuan from the investment [1][5]. - Following Zhenhua New Materials' IPO, the stock price surged, reaching as high as 80 yuan per share, resulting in substantial profits from the investment made through a third party [5]. Group 3: Regulatory Context - The case highlights a growing trend of stricter penalties in the financial sector, with an increasing number of criminal prosecutions for similar offenses in recent years, contrasting with earlier cases that primarily resulted in administrative penalties [8]. - The Securities Law explicitly prohibits securities practitioners from holding or trading stocks directly or indirectly, emphasizing the need for integrity and diligence in their duties [7].