Three listed companies facing special treatment status have received advance notices of administrative penalties from China's securities regulator.
Shandong Hiking International Co.,Ltd. (ST新华锦), Guangxi Rural Investment Sugar Industry Group Co.,Ltd. (*ST广糖), and *ST 英飞 all announced on the evening of July 17, 2026, that they had received the notices from the China Securities Regulatory Commission (CSRC). The companies had previously received formal investigation notices from the CSRC on February 26, 2026, June 12, 2026, and January 24, 2025, respectively.
Details of the Alleged Violations
According to the advance notices, the primary violation for Shandong Hiking International Co.,Ltd. (ST新华锦) involves the non-operational appropriation of company funds by related parties. Between November 2021 and August 2025, funds from the company and its subsidiaries were channeled through intermediaries to its parent group and related parties. Notably, even after the company disclosed a previous instance of fund misappropriation on April 29, 2025, the misconduct reportedly continued. The involved funds were not fully repaid in cash until April 20, 2026.
The violations for Guangxi Rural Investment Sugar Industry Group Co.,Ltd. (*ST广糖) are twofold. First, a subsidiary improperly recognized revenue for certain transportation and warehousing services across different reporting periods, leading to misstatements in the company's 2023 and 2024 annual reports. Second, a subsidiary recognized revenue for goods not actually delivered and failed to make retroactive adjustments after the related business was terminated, further contributing to the false records in those annual reports. The company disclosed corrections for these accounting errors on April 29, 2026.
The case for *ST 英飞 relates to activities between 2019 and 2020. Its subsidiaries, Infinova System and Xinpu Interconnect, allegedly inflated operating revenue and costs, manipulated financial expenses, and overstated total profits through fictitious projects and premature revenue recognition.
Potential for Investor Compensation
Legal counsel indicates that the issuance of these advance penalty notices opens a pathway for affected investors to seek compensation. The preliminary eligibility periods for potential claimants have been outlined.
Investors who purchased shares of Shandong Hiking International Co.,Ltd. (ST新华锦) between May 7, 2025, and August 26, 2025, and sold or held them after August 27, 2025, sustaining losses, may qualify.
For Guangxi Rural Investment Sugar Industry Group Co.,Ltd. (*ST广糖), the tentative period is between April 3, 2024, and April 29, 2026, with sales or holdings after April 30, 2026.
Regarding *ST 英飞, the period is between April 29, 2020, and April 29, 2024, with sales or holdings after April 30, 2024.
Losses incurred during these specified periods form the basis for the potential compensation claims.
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