21世纪经济报道·2025-11-03 03:55Core Viewpoint - The article discusses the regulatory actions taken against Yichuang Securities' subsidiary, Yichuang Investment Bank, due to its failure to diligently supervise the convertible bond project of Hongda Xingye, highlighting the need for enhanced oversight in the investment banking industry [1][5]. Group 1: Regulatory Actions - On October 31, Yichuang Securities announced that its subsidiary received a notice from the China Securities Regulatory Commission (CSRC) regarding an investigation into its supervisory responsibilities related to Hongda Xingye's 2019 convertible bond project [1][5]. - The investigation stems from Yichuang Investment Bank's alleged failure to fulfill its supervisory duties during the continuous supervision period of the convertible bonds [1][6]. Group 2: Hongda Xingye's Financial Issues - Hongda Xingye issued 24.27 billion yuan worth of convertible bonds in December 2019, which were later subject to significant financial irregularities, including unauthorized changes in the use of raised funds amounting to 16.91 billion yuan [5][6]. - The company was found to have inflated its revenue by 35.05 billion yuan and profits by 40.78 billion yuan from 2020 to 2022, leading to false disclosures in its financial reports [6][8]. Group 3: Consequences and Penalties - Hongda Xingye was delisted in March 2024 after its stock price fell below 1 yuan for twenty consecutive trading days, and it faced administrative penalties totaling 57.8 million yuan from the Jiangsu Securities Regulatory Bureau [1][7]. - Key executives, including the controlling shareholder Zhou Yifeng, received lifetime bans from the securities market, while the financial director faced a 10-year ban [7][8]. Group 4: Yichuang Securities' Performance - Despite the regulatory scrutiny, Yichuang Investment Bank reported a significant increase in its investment banking activities, with a 296.64% year-on-year growth in underwriting amounts, totaling 25.27 billion yuan in the first half of the year [9]. - For the first three quarters of 2025, Yichuang Securities achieved a revenue of 2.985 billion yuan, reflecting a 24.32% increase year-on-year, with investment banking contributing 1.97 billion yuan, a 15.13% increase [9].