As the China Securities Regulatory Commission (CSRC) and its local counterparts issued their first penalty notices of 2026, the signal of a strict, zero-tolerance regulatory stance in the capital market continues to be broadcast. According to data from Tonghuashun iFinD, since the beginning of the year, 13 listed companies in the A-share market have disclosed announcements involving formal investigations, including 9 initiated by the CSRC and the rest by provincial supervisory commissions, affecting 6 listed companies and 6 key individuals. Furthermore, the CSRC system has issued over one hundred administrative penalties and regulatory measures involving more than 60 listed companies, including several high-profile cases. In terms of violation types, suspected information disclosure irregularities are the most common, while market trading violations also warrant significant attention. Notably, regulators are persistently strengthening the pursuit of personal liability for the "key few" in listed companies, highlighting a clear trend towards precise accountability and penetrating supervision.
Suspected information disclosure violations rank first. In the first month of the year, six listed companies have been placed under investigation for suspected information disclosure violations: Jiangsu Boamax Technologies Group Co.,Ltd. (002514.SZ), Winall Hi-Tech Seed Co.,Ltd. (300087.SZ), Ningbo Ronbay New Energy Technology Co.,Ltd. (688005.SH), Zhejiang Sunflower Great Health Co.,Ltd. (300111.SZ), Ningbo Tip Rubber Technology Co.,Ltd. (605255.SH), and Xi'An Bright Laser Technologies Co.,Ltd. (688333.SH). Regarding specific reasons, Ningbo Ronbay New Energy Technology Co.,Ltd., Zhejiang Sunflower Great Health Co.,Ltd., and Ningbo Tip Rubber Technology Co.,Ltd. all involved issues with the truthfulness, accuracy, and completeness of their disclosures, reflecting regulators' sustained high-pressure stance against such behaviors. On January 19, the CSRC stated that an announcement made by Ningbo Ronbay New Energy Technology Co.,Ltd. on January 14 regarding a significant daily operating contract contained suspected misleading statements, leading to a formal investigation; the next step will involve handling the case according to law based on a comprehensive investigation to safeguard market health and stability. The contract in question pertains to a "Lithium Iron Phosphate Cathode Material Procurement Cooperation Agreement" disclosed by the company with Contemporary Amperex Technology Co., Limited (300750.SZ), with an estimated total sales value exceeding 120 billion yuan. On the day of the announcement, the stock exchange issued an inquiry letter raising concerns about the accuracy of the information, specific contract details, and insider trading prevention measures. The CSRC initiated its investigation on the same day the company replied to the inquiry. It is worth noting that in the second half of 2025, Ningbo Ronbay New Energy Technology Co.,Ltd.'s stock price fluctuated by over 90%, and in the nearly one month preceding the disclosure of this major contract, the price fluctuation exceeded 35%.
The investigation into pharmaceutical company Zhejiang Sunflower Great Health Co.,Ltd. is related to a closely watched "cross-sector into semiconductors" restructuring plan. The CSRC pointed out that recent market doubts regarding the actual capacity and business model of the restructuring target prompted the Zhejiang Securities Regulatory Bureau to conduct a verification, which discovered the restructuring proposal contained suspected misleading statements, leading to a recent investigation into Zhejiang Sunflower Great Health Co.,Ltd. The next step will involve handling the case according to law based on a comprehensive investigation to maintain order in the mergers and acquisitions market. The previously disclosed restructuring plan showed the company intended to acquire 100% equity of Zhangzhou Xipu Material Technology Co., Ltd. and 40% equity of Zhejiang Beide Pharmaceutical Co., Ltd. through issuing shares and paying cash, while also raising supporting funds. This restructuring has now been terminated as the company no longer meets the conditions for a share issuance asset purchase following the investigation.
The investigation into Ningbo Tip Rubber Technology Co.,Ltd. highlights regulatory strictness against hype surrounding hot concepts. On January 10, Ningbo Tip Rubber Technology Co.,Ltd., whose stock price had surged by 1631.69% throughout 2025, was placed under investigation by the CSRC. The CSRC stated that the abnormal stock price volatility of Ningbo Tip Rubber Technology Co.,Ltd. had attracted significant market attention and that it would handle the matter according to law based on a comprehensive investigation to safeguard market health and stability. It was noted that Ningbo Tip Rubber Technology Co.,Ltd. issued over 20 announcements in 2025 concerning abnormal stock trading and risk warnings, and underwent four trading halts for verification. Notably, from August 22 to September 2, 2025, the stock experienced eight consecutive daily limit-up gains, with a cumulative closing price deviation reaching 100%, severely diverging from the company's fundamentals. Just days before the CSRC investigation, the Shanghai Stock Exchange issued a regulatory warning to Ningbo Tip Rubber Technology Co.,Ltd. and relevant responsible persons, directly citing "inaccurate and incomplete" information disclosure related to the "artificial intelligence" hot concept and "insufficient risk warnings." Disclosures showed that near the end of 2025, Ningbo Tip Rubber Technology Co.,Ltd. established a wholly-owned subsidiary whose business scope included integrated circuit chip design, AI theory and algorithm software development, AI industry application system integration services, and chip sales. Days later, it changed this subsidiary's business scope to rubber product manufacturing and automotive parts manufacturing. During this period, the company's stock price hit the daily limit-up for two consecutive days, triggering abnormal volatility criteria, yet the company's announcement claimed it had "no plans to conduct AI-related business."
Precise accountability aims to solidify the primary responsibility of the "key few." Data shows that among the 13 aforementioned investigations, directors, supervisors, and senior management (the "key few") from 8 listed companies were targeted, indicating a regulatory focus shifting from "penalizing the company" towards "simultaneously holding both the company and individuals accountable." The trend towards "precise supervision, accountability to the person" is becoming increasingly clear. In terms of investigation reasons, market trading violations cannot be ignored. For instance, the actual controller of Tianyu Bio-Technology Co.,Ltd. (603717.SH), Luo Weiguo, is suspected of illegal share reduction; the independent director of Zhe Jiang East Crystal Electronic Co.,Ltd. (002199.SZ), Fu Baoshan, is suspected of insider trading; and a director and deputy general manager of Qingdao Topscomm Communication Co.,Ltd. (603421.SH), Yuan Zhishuang, is suspected of short-swing trading. Furthermore, the actual controller, chairman, and general manager of Jiangsu Teeyer Intelligent Equipment Co.,Ltd. (603273.SH), Wu Yizhong, has been subjected to residential surveillance and investigation by the Jiangsu Provincial Supervisory Commission; Sichuan Em Technology Co.,Ltd. (601208.SH), Beijing Comens New Materials Co.,Ltd. (300200.SZ), and Guangzhou Echom Sci.&Tech.Co.,Ltd. (002420.SZ) announced that their actual controller, Xiong Haitao, is under investigation for suspected crimes by the Sichuan Provincial Supervisory Commission and is under residential surveillance. This trend is also evident in the penalties and regulatory measures already imposed. Tonghuashun iFinD data shows that as of January 29, among the over one hundred administrative penalties or regulatory measures issued by the CSRC system in 2026 involving more than 60 listed companies, over 70% pursued the personal liability of the "key few" such as directors, supervisors, and senior management, with chairmen, general managers, CFOs, and board secretaries being the primary targets. The reasons for accountability mainly concentrate on persistent issues like fund embezzlement, financial fraud, related-party transactions, illegal share reductions or acting as a nominee holder, concealment of related-party relationships, improper management of raised funds, and poor internal controls.
Industry insiders point out that strengthening personal accountability can more effectively target the core of illegal activities, enhance the deterrent effect of regulation, and urge the "key few" to perform their duties diligently. Xing Xing, a well-known financial commentator and chief economist at Jindonghui, stated in an interview that severe punishments demonstrate the rigidity of law enforcement. "Executives of listed companies should be clearly aware that fabricating contracts and inflating profits are typical acts of financial fraud. When participants form a chain, leading to widespread fraud covering sales, finance, and senior management, the subjective malice is evident, representing a blatant disregard for market rules and legal authority," Xing said.
The formation of a high-pressure regulatory environment follows a clear policy trajectory and continuous action deployment. Since the ongoing release of policy benefits from the "New National Nine Articles" in September 2024 and the continuous improvement of the capital market's "1+N" policy system, the CSRC's main focus on "strengthened supervision, risk prevention, and promoting high-quality development" has been consistently reinforced. The philosophy of strict regulation runs throughout, with regulatory deterrence continuously increasing. A series of institutional documents and regulatory measures have drawn clearer "red lines" for high-quality development in the capital market. On January 15, the CSRC held its 2026 System Work Conference, explicitly stating that 2025 had seen an acceleration in building a comprehensive system for preventing and punishing financial fraud, and that current efforts must further严肃 market discipline, resolutely cracking down on恶性 violations such as financial fraud, price manipulation, and insider trading. On January 16, the CSRC comprehensively summarized the achievements of its inspection and enforcement work, commending outstanding teams and individuals who performed notably in investigating major cases over the past two years. The meeting noted that in recent years the CSRC has resolutely implemented the requirement to be "toothy and thorny," maintaining a high-pressure stance against all types of capital market violations. It also demanded that the inspection and enforcement front comprehensively enhance investigation quality, deepen enforcement reforms, strengthen technological empowerment, and consolidate enforcement efforts to resolutely defend market fairness and justice, thereby better escorting the high-quality development of the capital market.
Xing Xing stated that these work deployments signal to the market that the message of strict regulation is intensifying. Against the backdrop of the comprehensive registration-based system, regulators maintain a "zero-tolerance" attitude towards financial fraud and information disclosure violations. The regulatory authorities' heavy penalties and layered accountability serve as a warning to the market, pushing listed companies to fortify their compliance bottom lines and urging intermediaries to solidify their supervisory responsibilities, which helps purify the capital market ecosystem and promote its medium- to long-term healthy and stable development.
Comments