On December 8, 2025, Bank Of Beijing Co., Ltd. (601169.SH) announced that it received a notice of litigation from the Suzhou Intermediate Court, involving a securities misrepresentation dispute case filed by investors, including Hu Juling, against Kangde Xin Composite Material Group Co., Ltd. (referred to as "Kangde Xin").
The case stems from a penalty decision issued by the China Securities Regulatory Commission (CSRC) on September 24, 2020. After investigations, hearings, and reviews, the CSRC found Kangde Xin guilty of three major violations in information disclosure: falsifying annual reports from 2015 to 2018, failing to disclose related-party guarantees for its controlling shareholder, and misrepresenting the use of raised funds. These actions violated the 2005 Securities Law, resulting in a fine of 600,000 yuan and a warning for Kangde Xin, as well as penalties ranging from 30,000 to 900,000 yuan for 12 individuals, including Zhong Yu.
Bank Of Beijing Co., Ltd. and its branches had multiple business ties with Kangde Xin, which led to its involvement in the case and prior regulatory penalties. Specifically, the bank acted as the lead underwriter and bookrunner for Kangde Xin’s "2018 First Phase Ultra-Short-Term Financing Bonds," outlining responsibilities in issuance, post-issuance management, and investor protection. Additionally, its Xidan branch signed a "Cash Management Service Agreement" with Kangde Xin, overseeing unified account management.
However, regulatory authorities uncovered violations in these dealings. On December 23, 2020, the Beijing Banking and Insurance Regulatory Bureau penalized Bank Of Beijing Co., Ltd. and five individuals—Dai Wei, Lin Biao, Li Juan, Xu Wenjuan, and Mu Tong—for issuing false inquiry replies and deposit certificates, as well as internal control deficiencies. The bank was fined 3.5 million yuan, while Li Juan and Xu Wenjuan were barred from holding director or senior management positions for five years. Mu Tong received a warning and a 500,000 yuan fine, and Dai Wei and Lin Biao were fined 300,000 yuan each.
In the current securities misrepresentation case, the plaintiffs, led by Hu Juling, have appointed five representatives. The defendants total 40, with Kangde Xin as the primary defendant, followed by related companies, executives, Bank Of Beijing Co., Ltd. (29th defendant), its Xidan branch (30th defendant), and other involved institutions like China Chemical Saiding Ningbo Engineering Co., Ltd. and Ruihua Certified Public Accountants.
The plaintiffs seek four main claims: 1. Compensation of 4.139 billion yuan from Kangde Xin for investment losses due to misrepresentation. 2. Joint liability for the remaining 39 defendants. 3. Payment of 3 million yuan in legal and administrative fees by all defendants. 4. Coverage of all litigation costs by the defendants.
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