Core Viewpoint - The China Securities Regulatory Commission (CSRC) has initiated an investigation into Yichuang Securities, a subsidiary of First Capital, due to alleged negligence in its supervisory duties related to the 2019 convertible bond project of Hongda Xingye, which has since been delisted [1][2]. Group 1: Investigation Details - The investigation stems from Yichuang Securities' involvement in the 2019 convertible bond project of Hongda Xingye, where it is accused of failing to diligently supervise the project [1][2]. - Hongda Xingye was delisted in March 2024, but the repercussions of its financial misconduct continue to affect related parties [1][2]. - The CSRC's investigation was prompted by findings from the Jiangsu Securities Regulatory Bureau, which revealed significant financial fraud and violations by Hongda Xingye, including unauthorized changes in the use of raised funds amounting to 1.691 billion yuan and inflated profits totaling 4.078 billion yuan from 2020 to 2023 [1][2][6]. Group 2: Financial Performance of First Capital - Despite the ongoing investigation, First Capital reported a revenue of 2.985 billion yuan for the first three quarters of 2025, reflecting a year-on-year increase of 24.32%, and a net profit of 771 million yuan, up 20.21% [2]. - The investment banking segment of First Capital generated 197 million yuan in revenue during the same period, marking a 15.13% increase and accounting for 6.60% of the company's total revenue [2]. Group 3: Future Business Implications - Yichuang Securities is focusing on initial public offerings (IPOs) on the Beijing Stock Exchange, having successfully submitted one IPO application in the first half of 2025, with two projects currently under review [3]. - The impact of the ongoing investigation on Yichuang Securities' current operations, particularly its IPO activities, remains to be seen [3].