Core Viewpoint - Zhejiang International Trade Group Co., Ltd. has initiated an investigation into allegations of misconduct involving employees of its subsidiary, Zhejiang Merchants Asset Management Co., Ltd. [1][5] Group 1: Allegations and Investigation - Allegations surfaced on social media regarding misconduct by several management personnel at Zhejiang Merchants Asset, including accepting lavish banquets and paid companionship at KTV [5] - The group has confirmed that three employees, including Xu, have been suspended pending the outcome of the investigation, which was initiated after receiving reports on November 17 [1][5] - The reported misconduct includes extravagant hospitality expenses, with claims of over 500,000 yuan spent on receptions, including high-end liquor and entertainment [5] Group 2: Company Background - Zhejiang International Trade Group is a large state-owned enterprise established in 2008, with over 300 subsidiaries and more than 27,000 employees, ranking among China's top 500 enterprises [6] - The financial services segment of the group holds 12 financial and quasi-financial business licenses, with a focus on asset management and bad debt recovery, having acquired over 686.9 billion yuan in bad debt principal by the end of 2024 [6] - Zhejiang Merchants Asset, established in 2013, is a key player in the financial services sector, specializing in the acquisition and disposal of non-performing assets, investment banking services, and fund management [8]

Group 1 - The major asset restructuring project of *ST Songfa (603268) has been successfully completed, with Guangzhou Asset Management Co., a subsidiary of Yuexiu Capital, becoming the eighth largest shareholder of *ST Songfa after participating in the capital increase subscription [1] - *ST Songfa, established in 2002 and listed on the Shanghai Stock Exchange in 2015, has faced challenges due to intensified industry competition and declining market demand, leading to multiple unsuccessful transformation attempts [1] - To mitigate delisting risks and achieve industrial transition, *ST Songfa has divested its ceramic manufacturing capacity and injected 100% equity of Hengli Heavy Industry Group Co., Ltd., which is a benchmark private enterprise in the marine equipment manufacturing industry [1] - The restructuring facilitates *ST Songfa's transition from traditional ceramic manufacturing to high-end marine equipment manufacturing, with the raised funds aimed at enhancing smart manufacturing and R&D projects for high-end ships, thereby improving the company's overall strength and industry competitiveness [1] Group 2 - In recent years, Guangzhou Asset has been actively promoting its investment banking transformation strategy, focusing on alleviating the financial distress of listed companies and enhancing industrial value, contributing to regional financial stability [2] - Guangzhou Asset plans to continue its core responsibilities, including the acquisition and disposal of non-performing assets, while deepening its investment banking transformation strategy to support high-quality development in Guangdong Province and mitigate regional financial risks [2]