Wind Risk Control Daily | Financial fraud involving Evergrande Real Estate! PricewaterhouseCoopers was heavily fined $441 million

Today's attention //

1. The mainland will start the reform of delayed retirement

2. The central bank: began to launch some incremental policy measures to further reduce the cost of corporate financing and household credit

3. The European Union rejected all price commitment proposals from Chinese electric vehicle manufacturers, and the Ministry of Commerce responded

4. Financial fraud involving Evergrande Real Estate! PricewaterhouseCoopers was heavily fined $441 million

5. Yi Wei, a natural person, manipulated "Jinling Sports" and was fined 167 million yuan by the Securities Regulatory Commission

6. *ST Yaxing: Submitted an application for termination of listing to the Shanghai Stock Exchange

7. For the first time in 16 years! About 33,000 Boeing workers decided to go on strike

8. Northvolt, a leading European battery company, is in the predicament of layoffs and production stoppage

Macro Policy //

1. The mainland will start the reform of delayed retirement

The Standing Committee of the National People's Congress (NPC) voted and adopted the decision on the gradual postponement of the statutory retirement age. According to the decision, starting from January 1, 2025, the mainland will gradually extend the statutory retirement age from 60 to 63 for male employees and from 50 and 55 to 55 and 58 for female employees in 15 years. This is the first time in more than 70 years that the statutory retirement age for employees has been adjusted since it was determined in the 50s of the last century. In addition to postponing the statutory retirement age, it was decided to adjust the minimum monthly payment period for employees to receive a basic pension, which will be gradually increased from 15 years to 20 years from 2030, with an annual increase of 6 months.

2. The central bank: began to launch some incremental policy measures to further reduce the cost of corporate financing and household credit

The person in charge of the relevant department of the central bank said that in the next step, the monetary policy will be more flexible, moderate, precise and effective, increase the intensity of regulation and control, accelerate the implementation of the financial policy measures that have been introduced, and start to introduce some incremental policy measures to further reduce the cost of corporate financing and household credit, and maintain reasonable and abundant liquidity. According to the central bank, at the end of August, the balance of M2 increased by 6.3% year-on-year, and the balance of M1 decreased by 7.3% year-on-year. In the first eight months of this year, RMB loans increased by 14.43 trillion yuan, and the cumulative increase in the scale of social financing was 21.9 trillion yuan, 3.32 trillion yuan less than the same period last year. At the end of August, the stock of social financing was 398.56 trillion yuan, a year-on-year increase of 8.1%.

China Bond Alert //

1. Blu-ray Development: The company and its subsidiaries have added 25 records of dishonesty to be executed

From June 26 to September 12, 2024, Sichuan Blu-ray Development Co., Ltd. and its subsidiaries added 25 items to be included in the record of dishonesty and enforcement, specifically due to the refusal to perform the obligations determined in effective legal documents despite the ability to perform, violation of the property reporting system, and other evasion of enforcement.

2. Feng Liujiang, the former chairman of Guangxi Investment Group, was arrested by decision

The case of Feng Liujiang, former secretary of the party committee and chairman of Guangxi Investment Group Co., Ltd., who was suspected of accepting bribes and using influence to accept bribes, was investigated by the Guangxi Zhuang Autonomous Region Supervision Commission and transferred to the procuratorate for review and prosecution. After the People's Procuratorate of Guangxi Zhuang Autonomous Region designates jurisdiction, the People's Procuratorate of Liuzhou City is to review and prosecute. A few days ago, the Liuzhou Municipal People's Procuratorate made a decision to arrest Feng Liujiang on suspicion of accepting bribes and using influence to accept bribes in accordance with the law. The case is being further processed.

3. Liuzhou Urban Construction Group: Tang Yi, the legal representative and chairman of the board, was unable to perform his duties, and Wu Ming acted as the chairman

Guangxi Liuzhou City Construction Investment and Development Group Co., Ltd. issued an announcement saying that Tang Yi, the company's legal representative and chairman of the board, was unable to perform his duties due to personal reasons, and the specific time was undetermined. The State-owned Assets Supervision and Administration Commission of Liuzhou City has authorized Wu Ming to act as the chairman of the board.

4. Wanzhou Three Gorges: Director Kong Peng was investigated on suspicion of serious violations of discipline and law

Chongqing Wanzhou Three Gorges Pinghu Co., Ltd. announced that according to the Chongqing Wanzhou District Commission for Discipline Inspection and Supervision, the company's director Kong Peng is suspected of serious violations of discipline and law, and is currently undergoing disciplinary review and supervision investigation by the Wanzhou District Commission for Discipline Inspection and Supervision. The Company has arranged for other personnel to perform the corresponding duties of the Director.

5. Airport Investment Group: The subsidiary added two new debts with an overdue amount of more than 10 million yuan

Kunming Airport Investment and Development Group Co., Ltd. announced that the company was involved in two enforcement cases and two litigation cases, including the enforcement case of China Construction Third Bureau and the execution case of Yunxi Leasing, which are currently being implemented. In terms of litigation cases, the contract dispute case with Yunnan Changshui Hangcheng is being heard, and the amount of litigation has been reduced; The contract dispute with Bang Bank Financial Leasing has been mediated. And the subsidiary added two new debts with an overdue amount of more than 10 million yuan.

6. Qingdao Jinshui Holding Group: "24 Qingdao Jinshui MTN003" cancelled the issuance

Qingdao Jinshui Group Co., Ltd. announced on September 13, 2024 that in view of the change in the financing plan, it has decided to cancel the issuance of "24 Qingdao Jinshui MTN003", and the follow-up issuance plan will be announced separately.

7. Zhenro Real Estate: The final deadline of the overseas debt restructuring support agreement was further extended to September 19

Zhenro Real Estate Group announced on the Hong Kong Stock Exchange that the deadline for the offshore debt restructuring support agreement has been further extended to September 19 in accordance with the terms contained in the restructuring support agreement.

8. As of the end of August, the amount of debt restructuring realized by China Fortune was 190.029 billion yuan

Huaxia Fortune announced that as of August 31, the cumulative amount of debt restructuring of financial debts in the company's "Debt Restructuring Plan" through signing and other means was about 190.029 billion yuan, and the total amount of financial and operating debts offset by the equity of the "Happiness Select Platform" and "Happiness Preferred Platform" built by the company with the equity of its subsidiaries was about 16.935 billion yuan, and the total amount of debts that failed to be repaid on time was 24.555 billion yuan. During the period from the Company's previous disclosure of litigation and arbitration to August 31, the total amount involved in the new litigation and arbitration matters was RMB441 million.

China Stock Alert //

1. Next week, the ban on restricted shares with a market value of 27.511 billion yuan will be lifted, and Centec Communications will lift the ban with 5.152 billion yuan

Wind data statistics show that a total of 50 companies' restricted shares will be lifted next week, with a total of 3.187 billion shares, and the total market value of the ban will be 27.511 billion yuan based on the closing price on September 13. The top three in terms of market capitalization are: Shengke Communications-U (5.152 billion yuan), Waifu Holdings (3.719 billion yuan), and Neway CNC (3.089 billion yuan). From the perspective of the number of individual stocks, the top three shares are: Waifu Holdings (894 million shares), Chuanfa Long Python (386 million shares), and Neway CNC (245 million shares).

2. Yi Wei, a natural person, manipulated "Jinling Sports" to make a profit of 83.34 million yuan and was fined 167 million yuan by the Securities Regulatory Commission

The China Securities Regulatory Commission recently issued an administrative penalty decision, from September 4, 2017 to April 18, 2019, Yiwei Control used 39 securities accounts to trade "Jinling Sports" stocks. During the manipulation period, Yi Wei controlled the use of account groups, which affected the trading price and trading volume of "Jinling Sports" stocks, and made a profit of 83,342,207.12 yuan. The China Securities Regulatory Commission decided to confiscate Yi Wei's illegal gains of 83.34 million yuan and impose a fine of 83.34 million yuan.

3. 3 A-share companies were filed by the Securities Regulatory Commission!

On the evening of September 13, Lianchuang Co., Ltd., Langyuan Co., Ltd., and *ST Yinjiang all announced that they had received the "Notice of Case Filing" issued by the China Securities Regulatory Commission, and the China Securities Regulatory Commission decided to file a case against the company due to the company's suspected illegal information disclosure.

4. Shenzhen Stock Exchange: This week, we will continue to focus on monitoring the "*ST Jingfeng" that has recently seen abnormal stock price rises and falls

This week, the Shenzhen Stock Exchange has taken self-regulatory measures against a total of 93 abnormal securities trading behaviors, involving abnormal trading situations such as intraday lifting and suppression, false declarations, etc.; Continue to focus on monitoring the "*ST Jingfeng", which has recently seen abnormal stock price rises and falls; A total of 10 major matters of listed companies were verified, and 3 cases of suspected violations of laws and regulations were reported to the CSRC.

5. Huicheng Technology: The company's shares will be subject to other risk warnings

Huicheng Technology announced that according to the facts stated in the prior notice of administrative punishment of the China Securities Regulatory Commission, there were false records in the financial indicators of the annual report disclosed by the company. According to the relevant regulations of the Shenzhen Stock Exchange, the company's shares will be subject to other risk warnings. The stock abbreviation will be changed from "Huicheng Technology" to "ST Huicheng", and the company's shares will be suspended for one day from the opening of the market on September 18 and resume trading from the opening of the market on September 19.

6. *ST Tongzhou: The first instance judgment ruled that the company should compensate investors for losses of 6.758 million yuan

*ST Tongzhou announced that the company recently received the "Civil Judgment" and "Civil Ruling" served by the Intermediate People's Court of Shenzhen, Guangdong Province, and made a first-instance judgment on the litigation claim case involving 114 investors including Zhu Xiumei, and allowed the investor Hou Xiangdong and other 4 investors to withdraw the lawsuit. According to the judgment, the company needs to compensate 114 investors including Zhu Xiumei for losses of 6.758 million yuan and bear the case acceptance fee of 122,500 yuan. The above judgment is a first-instance judgment, and the case has not yet been concluded, and the company is unable to judge the impact on the company's profit and loss.

7. *ST Yaxing: Submitted an application for termination of listing to the Shanghai Stock Exchange

*ST Yaxing announced that the company submitted an application to the Shanghai Stock Exchange on September 13 to withdraw its listing transaction, and the Shanghai Stock Exchange is still subject to the Shanghai Stock Exchange's decision on whether to accept it. The company and relevant parties are actively promoting the relevant work of the termination of listing, and there is still uncertainty about whether the relevant approval and implementation can be finally passed.

8. Xinshida: Jin Xinhai, the former deputy general manager, was approved for arrest on suspicion of embezzlement

Xinshida announced that Jin Xinhai, the company's director and former deputy general manager, has been arrested by the People's Procuratorate of Jiading District, Shanghai on suspicion of embezzlement.

9. Hailian Jinhui: The third-level subsidiaries were fined and confiscated a total of 84.7084 million yuan

Hailian Jinhui announced that the third-level subsidiary, UMF, received the "Administrative Penalty Decision" issued by the Beijing Branch of the State Administration of Foreign Exchange, and because in the process of handling foreign exchange purchase and cross-border payment business for three cross-border merchants, the review of transaction information did not meet the relevant management requirements, and the Beijing Branch of the State Administration of Foreign Exchange confiscated 387,300 yuan of illegal income of UMF, imposed a fine of 84.3211 million yuan, and fined a total of 84.7084 million yuan. The company will pay the fine in a timely manner in accordance with the requirements of the administrative penalty decision, which is expected to reduce the company's net profit of 84.7084 million yuan in 2024.

10. Royal Group: Shareholder Orient Securities intends to reduce its holdings by no more than 3%.

Royal Group announced that Orient Securities, a shareholder holding more than 5% of the shares, plans to reduce its holdings of no more than 3% of its shares through centralized bidding or block trading within 3 months after 15 trading days from the date of disclosure of the announcement. Orient Securities currently holds 5.72% of the company's shares, and the reason for the reduction is capital planning.

11. Zoomlion: Zoomlion terminated the listing of "backdoor" Luchang Technology

Zoomlion announced that the company intends to terminate the reorganization and listing of Hunan Zoomlion Intelligent Aerial Work Machinery Co., Ltd., a spin-off holding subsidiary, and Luchang Technology through reorganization. The termination of the spin-off still needs to be submitted to the company's board of directors and shareholders' general meeting for deliberation.

Overseas Warning //

1. The aftermath of the problem health care products has not subsided, and Kobayashi Pharmaceutical has suspended the sale of three products

Japan's Kobayashi Pharmaceutical Co. said that due to the health damage caused by the company's health products containing red yeast yeast ingredients, Japan dentists withdrew their recommendation for Kobayashi Pharmaceutical's three oral care products, and the company decided to suspend the sale of these products from the same day. According to Japan media reports, the three products that Kobayashi Pharmaceutical stopped selling were dental floss, interdental brushes and braces cleaning liquid. Since the packaging of these products was printed with the words "Japan Dentist Association Recommended", Kobayashi Pharmaceutical decided to remove the above words from the shelves and resell them after removing the above words on the outer packaging.

2. Due to the impact of the typhoon, Shanghai Disneyland may adjust its operations, and guests with Mid-Autumn Festival holiday tickets can get refunds or reschedules

Shanghai Disney Resort issued a weather alert stating that the resort is currently operating normally, but due to the impact of Typhoon Bebinca, the resort's operational arrangements may be adjusted in the coming days. Due to inclement weather conditions, some outdoor attractions and entertainment shows, including the Mickey Mouse Fairy Tale Train and the Fantastic Light Mirage Show, may be temporarily closed or cancelled.

3. For the first time in 16 years! About 33,000 Boeing workers decided to go on strike

About 33,000 workers at Boeing's assembly plants in the Seattle and Portland areas of United States voted to go on strike to express their dissatisfaction with a new collective bargaining agreement reached by Boeing and its largest union, the International Federation of Mechanical and Space Workers. The two assembly plants are mainly involved in the Boeing 737 MAX, Boeing 767 and Boeing 777. The strike was Boeing's first in 16 years.

4. Japan requires railway operators to conduct emergency inspections of wheels and axles

Japan's Minister of Land, Infrastructure, Transport and Tourism Tetsuo Saito said that in response to Japan Freight Railway's tampering with stress test data during the assembly of axles and wheels and other components of freight trains, railway operators across the country have been asked to conduct emergency inspections of wheels and axles on the 12th and submit a report by the 30th. Japan Cargo Railway Company announced on September 10 that it had been verified that the company had tampered with stress test data during the assembly of axles and wheels and other components of freight trains.

5. Northvolt, a leading European battery company, is in the predicament of layoffs and suspension of production

Sweden battery maker Northvolt plans to take measures such as laying off workers, suspending and selling parts of its business, and delaying capacity construction to weather the current crisis. This has raised concerns in the industry that its best chance to become a local EV battery leader in Europe may be at risk of stagnation. In June this year, BMW canceled a $2 billion contract with Northvolt for the purchase of battery cells due to the inability to deliver products on time. The company said it would suspend production of battery cathode materials at its Sweden gigafactory and instead source from Chinese or Korean companies, while looking for buyers or partners for its battery systems business in Poland.

Financial Interbank Warning //

1. Financial fraud involving Evergrande Real Estate! PricewaterhouseCoopers was heavily fined $441 million

On September 13, the Ministry of Finance made an administrative penalty decision on PwC, confiscating illegal gains and imposing a total fine of 116 million yuan on PwC's illegal acts involving Evergrande Real Estate's audit project in 2018. At the same time, the Ministry of Finance issued a warning to PwC, suspended its business for 6 months, and revoked the administrative penalty of PwC's Guangzhou office. On the same day, the China Securities Regulatory Commission issued an announcement stating that it imposed administrative penalties on PwC Evergrande Real Estate's failure to exercise due diligence in the audit of its annual report and bond issuance in accordance with the law, confiscated all business income of 27.74 million yuan during the period involved in the PwC case, and imposed a maximum fine of 297 million yuan, with a total fine of 325 million yuan. In terms of certified public accountants, in this case, the Ministry of Finance imposed administrative penalties on a total of 11 certified public accountants.

2. The China Securities Regulatory Commission talks about the PwC case: I hope that intermediaries will take it as a warning

Regarding the PwC administrative penalty case, the relevant person in charge of the China Securities Regulatory Commission said that the penalty is one and advises one hundred, and hopes that the majority of intermediaries will take it as a warning, be cautious to the end, fulfill the obligations and requirements of the law to the letter, always tighten the string of diligence and responsibility, truly based on professionalism, prudent practice, cherish reputation, objective,