Four major shareholders of listed companies have been fined!, 30 objects entered the blacklist for new listings | First time | Listed company

The supervision of violations in the recruitment process is ongoing.

Recently, the China Securities Association announced on its official website a blacklist of initial public offering (IPO) stock allocation targets and a restricted list of IPO securities and Beijing Stock Exchange (BSE) stock public offering and listing allocation targets. A total of 30 company accounts, private equity funds, and individual investor accounts were restricted by the association from participating in IPO for six months or a year due to violations during the IPO process. Four major shareholders of listed companies were also listed, and their accounts were regulated due to violations.

The association clarifies that during the period when the allocation objects are blacklisted or restricted, they shall not participate in the offline inquiry and allocation business of the Shanghai Stock Exchange and Shenzhen Stock Exchange Main Board, Science and Technology Innovation Board, ChiNext Initial Public Offering Securities Project, as well as the Beijing Stock Exchange Public Offering and Listing Project.

Multiple major shareholder accounts of listed companies are restricted

According to the official website of the association, in order to regulate the inquiry and subscription behavior of offline investors and their allocation targets in the initial public offering of stocks, in accordance with the relevant provisions of the original "Guidelines for Underwriting Business of Initial Public Offerings of Stocks", the original "Management Rules for Offline Investors in Initial Public Offerings of Stocks", and the "Notice on the Comprehensive Implementation of the Self discipline Management Work of Offline Investors under the Stock Issuance Registration System", the association has decided to blacklist the 29 allocation targets managed by offline investors who violate the above rules found during special inspections.

From the nature of the accounts, the 29 allocation targets included in the blacklist include 20 individual investor accounts, 1 private equity fund, and 8 company accounts. Through analysis, it was found that more than half of the 8 company accounts are either major shareholders of listed companies or self operated investment accounts of listed companies themselves.

Specifically, Xiamen Kehua Weiye Co., Ltd.'s self operated investment account has been restricted from participating in the new investment for six months, from June 5th to December 4th. The company is the largest shareholder of Kehua Data; The self operated investment account of Light Media Holdings Limited is restricted from participating in the new investment for one year, with a restriction period from June 5, 2023 to June 4, 2024. The company is a controlling shareholder of Light Media; Hangzhou Dace Investment Co., Ltd.'s self operated investment account has been restricted from participating in the new investment for six months, from June 5th to December 4th. The company is the second largest shareholder of Huace Film and Television.

In addition, the listed company Xinyada and its largest shareholder Hangzhou Xinyada Electronics Co., Ltd. have both been restricted from participating in new investment accounts by the association. The former has been restricted from new investment accounts for six months, while the latter has been restricted from new investment accounts for one year, and will be restricted until June 4, 2024.

The association clarifies that during the period when the allocation targets are blacklisted, they are not allowed to participate in the offline inquiry and allocation business of the Shanghai Stock Exchange and Shenzhen Stock Exchange Main Board, Science and Technology Innovation Board, Growth Enterprise Board's initial public offering securities projects, as well as the Beijing Stock Exchange's public offering and listing projects.

This list is the sixth blacklist of first-time public offering stock allocation targets released by the association in 2023. Including the first five lists that have been restricted from participating in new accounts, as of June 5, the list has been published. Since 2023, 166 targets have been blacklisted by the association due to violations during the new process.

New violations by the Beijing Stock Exchange

Individual investor accounts are restricted for six months

After the opening of the Beijing Stock Exchange, the association has continued to pay attention to and punish violations in its public offering. On the same day as the aforementioned blacklist, there were also restricted lists for initial public offerings of securities and public offerings and listings of shares on the Beijing Stock Exchange.

Specifically, the association has decided to include in the restricted list the allocation objects that fall under Article 41 of the Offline Investor Management Rules for Initial Public Offerings of Securities in the offline inquiry and allocation process of projects such as "Anda Technology" on the Beijing Stock Exchange. The "Ye Jingken's own fund investment account" has been included in the restricted list for a total of six months, from June 5th to December 4th.

Consistent with the aforementioned blacklisted objects, the association clarifies that during the period when the above-mentioned allocation objects are included in the restricted list, the allocation objects shall not participate in the offline inquiry and allocation business of the Shanghai Stock Exchange and Shenzhen Stock Exchange Main Board, Science and Technology Innovation Board, and Growth Enterprise Board's initial public offering securities projects, as well as the Beijing Stock Exchange's public offering and listing projects.

Previously, on April 27th, the association had placed on the restricted list the allocation targets who engaged in illegal behavior during the offline inquiry and allocation process of projects such as the public offering and listing of "Ouputai" on the Beijing Stock Exchange. At that time, the individual investor account "You Yongjie Self owned Capital Investment Account" was also on the list, and it was also restricted for six months.

Article 41 of the Management Rules for Offline Investors of Initial Public Offerings of Securities specifies 21 prohibited behaviors of offline investors or their managed allocation objects when participating in offline inquiry and allocation business of initial public offerings of securities, including using other people's accounts or multiple account quotations, colluding with issuers or underwriters to quote, failing to abide by relevant commitments such as the restricted period after being allocated, providing valid quotations but not participating in subscription or not fully subscribing, and failing to pay subscription funds on time and in full.