On January 18, Shanxi Securities Co.Ltd(002500) announced that Zhongde securities, a holding subsidiary, had received the notice of filing a case (Zheng Jian Li Jian Li Jian Zi No. 03720220003) from the CSRC.
According to the announcement, the China Securities Regulatory Commission decided to file a case against Sino German securities in accordance with the securities law of the people’s Republic of China, the administrative punishment law of the people’s Republic of China and other laws and regulations because the recommendation business of Sino German securities was suspected of violating laws and regulations in the 2016 non-public offering of shares by LETV information technology (Beijing) Co., Ltd.
With the filing and investigation of Sino German securities, its relevant underwriting and recommendation business may be affected.
According to the data of China stock market news choice financial terminal, Sino German securities achieved a master underwriting revenue of 103 million yuan in 2021, with a market share of 0.29%, ranking 47th (according to the statistics of the issuer’s statements).
In addition, according to the statistics of the 21st Century Business Herald reporter, as of the evening of January 18, China and Germany securities had a total of two gem IPO projects under review, namely United Chemistry (inquired) and world window information (inquired), and the two main board IPO projects had been pre disclosed and updated (Zilin vinegar and Caofeidian wood).
It is worth mentioning that the day before, Sino German securities was also involved in LETV Securities Misrepresentation liability dispute, involving an amount of up to 4.571 billion yuan.
According to the announcement, 2000 plaintiffs such as Shanghai Junying asset management partnership (limited partnership) filed a civil lawsuit against LETV and other 21 defendants to the Beijing Financial court, asking LETV to compensate for the investment loss of 4.571 billion yuan caused by its misrepresentation, including LETV executives The other 20 defendants, including intermediaries, shall bear joint and several liability for compensation.
Among them, six intermediaries, Zhongde securities, Ping An Securities, Zhongtai Securities Co.Ltd(600918) , Lianda certified public accountants, Huapu Tianjian certified public accountants and ShineWing certified public accountants, as defendants, are required to bear joint and several liability for compensation.
Earlier, the 21st Century Business Herald had an exclusive report that ShineWing Zhonghe was also filed for investigation by the CSRC, mainly because it involved the audit projects of LETV’s 2015 and 2016 annual reports.
However, ShineWing pointed out: “according to the provisions of the CSRC, the relevant administrative licensing businesses such as IPO and refinancing should not be suspended. After communicating with the issuance department of the CSRC, they have not issued a notice to suspend the acceptance of ShineWing’s IPO and refinancing.”
