Core Viewpoint - Guodu Securities is embroiled in a significant bond default dispute involving a claim of 475 million yuan from Wukuang International Trust due to the default of the "20 Fusheng 01" bond issued by Fujian Fusheng Group [1][3][4] Financial Performance - Guodu Securities reported a revenue of 749 million yuan for the first half of the year, a year-on-year decrease of 4.42%, and a net profit attributable to shareholders of 358 million yuan, down 8.1% [1][10] - In contrast, Zheshang Securities, which has recently become the controlling shareholder of Guodu Securities, achieved a net profit of 1.149 billion yuan, a year-on-year increase of 46.49%, but its revenue fell by 23.66% [10] Legal Proceedings - The lawsuit filed by Wukuang Trust claims that Guodu Securities, as the lead underwriter, failed to fulfill its due diligence obligations, leading to the bond default [3][6] - The court has accepted the case, but no hearing has been scheduled yet [4] - Legal experts suggest that Guodu Securities may bear 10% to 30% of the liability based on past similar cases, with the possibility of a full compensation being low due to the absence of fraud allegations against the firm [2][7][8] Industry Context - The bond default case is part of a broader trend of increasing bond defaults in the real estate sector, which has been under significant financial strain [4][6] - The regulatory environment has become stricter for intermediary institutions, with recent cases establishing precedents for liability in bond issuance [6][8] Business Segments - Guodu Securities' business lines showed mixed results, with brokerage income increasing by 6.73% to 125 million yuan, while proprietary trading and investment banking revenues fell significantly [11] - The firm is also facing additional lawsuits related to contract disputes and alleged false statements in bond underwriting, which could further impact its financial standing and reputation [11]

Core Viewpoint - The article discusses the recent lawsuit filed by Wenkang International Trust against Guodu Securities for a bond default claim of 475 million yuan, highlighting the implications for the involved parties and the broader market context [1][6]. Group 1: Lawsuit Details - Wenkang International Trust is suing for 475 million yuan due to alleged "securities false statements" related to the "20 Fusheng 01" bond issued by Fujian Fusheng Group [6]. - Guodu Securities has acknowledged the lawsuit, stating it has been accepted by the court and is preparing a defense with a legal team [1][2]. Group 2: Market Context and Implications - The lawsuit reflects a growing trend where intermediary institutions, such as securities firms, are increasingly held accountable for bond defaults, particularly following the "Wuyang Bond" case in 2021 [8]. - The real estate sector has faced significant downturns, leading to asset devaluation and increased bond defaults, with Guodu Securities indicating that the lawsuit will not severely impact its operations due to its asset size and performance [2][8]. Group 3: Background on Fujian Fusheng Group - Fujian Fusheng Group issued the "20 Fusheng 01" bond in June 2020, during a period of declining real estate market conditions, which adversely affected its financial health [4]. - The company's total assets were reported at 95.5 billion yuan, with a significant portion (67 billion yuan) held in real estate, which saw a 30% decline in fair value, contributing to the default [8].

Core Viewpoint - Guodu Securities is facing legal action for failing to fulfill its due diligence obligations regarding the bond issuance by Fusheng Group, leading to significant losses for investors, specifically Wenkang Trust [2][3][4] Group 1: Legal and Financial Implications - The case involves a total amount of approximately 475 million yuan related to the bond "20 Fusheng 01," which had a total issuance scale of 1 billion yuan and a maturity of 2 years with a coupon rate of 7.50% [3][4] - Wenkang Trust purchased 400 million yuan of the bonds on June 29, 2020, but Fusheng Group failed to pay interest as agreed upon in the extension arrangement, leading to the lawsuit [3][5] - The lawsuit claims damages exceeding 475 million yuan, including principal loss of 400 million yuan, interest losses, and legal fees [5] Group 2: Company Performance and Changes - Following the acquisition of a 34.25% stake by Zheshang Securities, Guodu Securities has undergone significant management changes, including the appointment of Qian Wenhai as chairman [6][7] - Despite the merger, both Guodu Securities and Zheshang Securities reported declines in revenue, with Guodu Securities' revenue dropping by 4.42% to 748 million yuan and net profit decreasing by 8.10% to 357 million yuan in the first half of 2025 [6][7] - Guodu Securities is also involved in two other lawsuits with amounts exceeding 10 million yuan, indicating ongoing legal challenges [7]