Shandong Hiking International Co.,Ltd. (600735) announced on the evening of February 25, 2026, that it had received a formal investigation notice from the China Securities Regulatory Commission (CSRC). The CSRC has decided to initiate an investigation into the company due to suspected violations of information disclosure laws and regulations, citing the Securities Law and the Administrative Punishment Law.
On the same evening, Shandong Hiking International issued another announcement regarding its failure to complete the rectification of fund occupancy issues within the mandated correction period, leading to a trading halt of its shares. The announcement stated that as the company did not complete the required rectifications before the deadline of February 25, 2026, its shares will be suspended from trading starting February 26, 2026, in accordance with relevant rules of the Shanghai Stock Exchange. The suspension is expected to last no more than two months.
A portion of the investor claims against Shandong Hiking International, represented by lawyer Xu Feng from Shanghai Jiucheng Law Firm, have already been submitted to the court and are awaiting further arrangements. The firm is continuing to advance the filing of subsequent cases and is still accepting mandates from other investors seeking compensation.
On August 27, 2025, Shandong Hiking International announced that it had received a rectification order from the Qingdao branch of the CSRC targeting the company, its parent group, and its actual controller. As of the disclosure date of the 2025 semi-annual report, the parent group and its affiliates had non-operational fund occupancies totaling 406 million yuan. The investigation found that the parent group, controlled by the company's actual controller, had engaged in these non-operational fund occupancies.
According to the company's disclosed 2025 semi-annual report, the outstanding balance of non-operational fund occupancies by the parent group and its affiliates was 406 million yuan as of the report's disclosure date. These actions violated provisions of the CSRC's guidelines on fund transactions and external guarantees for listed companies.
Lawyer Xu Feng, who specializes in securities claim litigation, believes that investors who purchased Shandong Hiking International shares between May 8, 2025, and August 27, 2025, and sold or continued to hold these shares after August 27, 2025, may still be eligible to file for compensation.
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