Core Viewpoint - The Shanghai Stock Exchange (SSE) has strengthened its regulatory oversight by including refinancing violations in its review process, highlighting a zero-tolerance approach towards financial misconduct in the capital market [2][5]. Group 1: Regulatory Actions - The SSE's recent report includes a case involving Ankaite Technology Co., Ltd. (Ankaite), which faced issues such as related-party fund borrowing, inadequate internal controls over waste material sales, and inaccurate information disclosure [2][3]. - Ankaite's previous attempt to list on the Shenzhen Stock Exchange was thwarted due to insufficient disclosure of waste electrode disposal income, indicating a pattern of compliance issues [3]. - The SSE has taken regulatory warning measures against Ankaite and its sponsoring institutions, citing multiple financial accounting problems, including revenue recognition across periods and inaccuracies in research and development expense allocation [3][4]. Group 2: Market Trends - From May to June 2025, the SSE saw a significant increase in IPO applications, with 28 companies submitting requests, while only 3 IPOs passed the review process, indicating a shift towards refinancing projects [5]. - The SSE's decision to include refinancing in its regular reporting reflects a broader trend of tightening regulations, aiming to create a closed-loop supervision system that extends from IPOs to ongoing refinancing [5][6]. - The average R&D investment ratios for IPO companies on the Sci-Tech Innovation Board and the Growth Enterprise Market have increased, suggesting a growing emphasis on innovation and compliance among listed companies [6]. Group 3: Implications for Intermediaries - The SSE's actions signal a need for intermediaries to enhance their compliance and risk management systems, especially as they face scrutiny for inadequate due diligence and oversight [5][6]. - The involvement of leading securities firms in regulatory violations raises concerns about the quality of sponsorship and the potential for a trust crisis in the market [4][6]. - The SSE's regulatory measures emphasize the importance of transparent information disclosure and the accountability of both issuers and intermediaries in maintaining market integrity [6].