China’s *ST Jiuding under CSRC investigation for disclosure violations, faces delisting risk
Chinese listed company *ST Jiuding (formerly Jiuding Investment) is under investigation by the China Securities Regulatory Commission (CSRC) for suspected information disclosure violations related to inaccurate inventory and investment property accounting. The company restated its 2023 net profit from a profit of RMB 15.3 million to a loss of RMB 118 million. It received a delisting risk warning on April 30, 2026, after revenue fell below RMB 300 million with negative net profit. The share price has dropped 64% year-to-date to RMB 7.12.
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Cross-source coverage
Common ground
- The *ST Jiuding case involved serious accounting errors, including a 133 million yuan profit-to-loss swing and a 58% property valuation overstatement.
- The CSRC and Shanghai Stock Exchange took enforcement actions, showing regulators are willing to penalize even a former 'star stock.'
- Retail investors suffered real financial losses due to misleading disclosures.
- China's regulatory system is still developing and has room to improve, especially in proactive monitoring and investor compensation.
Points of contention
- Eastern Agent sees the case as proof of a maturing, effective regulatory system, while Regional and Neutral Agents view it as evidence of systemic failure and reactive enforcement.
- Regional Agent blames the problems on colonial-era power structures and crony capitalism, but Eastern Agent argues it's about bad management and improving regulation, not legacy systems.
- Neutral Agent insists the 13-year delay in catching the property overvaluation shows a blind spot, while Eastern Agent says targeted enforcement is efficient and appropriate.
Blind spots
- No one offered a concrete, workable plan for compensating retail investors who lost money.
- The debate ignored whether similar overvaluations are widespread across China's commercial real estate sector.
- Participants didn't discuss how new delisting rules or disclosure reforms will actually prevent future cases, not just punish past ones.
WorldAttention’s read
The *ST Jiuding case reveals a regulatory system that can punish wrongdoing after the fact but struggles to catch problems early. While China has made some structural reforms, like stricter disclosure rules, the system remains reactive—it took over a decade to flag a massive property overvaluation. The biggest gap is investor protection: harmed retail investors have no clear way to recover losses. All sides agree the system is improving, but it's not yet mature enough to prevent similar scandals or make victims whole.
Reporting timeline
China's *ST Jiuding Probed by Regulator Over Property Accounting Errors, Faces Delisting Risk
China's *ST Jiuding (600053.SH) received a formal investigation notice from the China Securities Regulatory Commission (CSRC) on September 18 for suspected information disclosure violations. The probe stems from accounting errors related to its Zijincheng commercial property project, where the company retroactively adjusted inventory and investment property valuations for 2023 and 2024. This correction flipped its 2023 net profit from a gain of 15.35 million yuan to a loss of 118 million yuan. The company had already been placed under delisting risk warnings in April 2026 and publicly censured by the Shanghai Stock Exchange in June 2026 for inaccurate revenue forecasts. According to company announcements, if its 2026 annual revenue falls below 300 million yuan and its net profit is negative, its stock will be delisted. In the first half of 2026, revenue was only 59.89 million yuan, and the net loss was 88.15 million yuan, making it highly challenging to meet the revenue threshold. The CSRC has not yet concluded its investigation or determined if this involves major violations leading to mandatory delisting.
China's *ST Jiuding Investigated by CSRC for Suspected Illegal Information Disclosure
On September 18, Kunwu Jiuding Investment Holdings Co., Ltd. (*ST Jiuding) announced it is under investigation by the China Securities Regulatory Commission (CSRC) for suspected illegal and non-compliant information disclosure. The company stated it will cooperate with the investigation. The probe follows the company's April 29, 2026 disclosure of accounting errors for fiscal years 2023 and 2024, which included an additional inventory write-down provision of RMB 169 million for 2023 and adjustments to investment property fair value losses. These corrections changed 2023 net profit from a profit of RMB 15.3 million to a loss of RMB 118 million. This is the second regulatory action in 2026; on June 3, the Shanghai Stock Exchange publicly condemned *ST Jiuding and former executives for an inaccurate 2025 performance forecast that failed to warn about delisting risk. The company has posted net losses for three consecutive years (2023-2025), with losses widening to RMB 358 million in 2025. Due to negative net profit and revenue below RMB 300 million in 2025, the stock received a delisting risk warning and was renamed *ST Jiuding on April 30, 2026.
China's *ST Jiuding Investigated by CSRC for Inaccurate Inventory and Property Accounting
Chinese listed company *ST Jiuding (formerly Jiuding Investment) has been placed under investigation by the China Securities Regulatory Commission (CSRC) for inaccurate accounting of inventory and investment properties. The company had previously voluntarily disclosed accounting errors on April 29, 2026, retrospectively adjusting its financial statements for fiscal years 2023 and 2024. The errors involved insufficient provisions for inventory write-downs on its 'Zijing City' project and incorrect fair value changes for investment properties. The retrospective adjustments critically shifted the company's net profit for fiscal year 2023 from a profit of RMB 15.3 million to a loss of approximately RMB 118 million. Due to a negative net profit in fiscal year 2025 and operating revenue falling below RMB 300 million after adjustments, the company triggered delisting risk warning conditions and its stock was renamed '*ST Jiuding' on April 30, 2026. This follows a public censure from the Shanghai Stock Exchange on June 3, 2026, for inaccurate earnings forecasts. The company's indirect controlling shareholder, Tongchuang Jiuding Investment Management Group, and actual controller Wu Gang have also faced significant penalties from the CSRC in previous years for securities law violations.
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Former 'First PE Stock' *ST Jiuding Probed for Disclosure Violations as Losses Widen
According to a report from Shenzhen Business Daily via East Money, *ST Jiuding, once known as 'China's first PE stock' after its backdoor listing in 2015, is under investigation for suspected information disclosure violations. The Shanghai Stock Exchange had already publicly reprimanded the company and its former executives in June 2025 for inaccurate earnings forecasts. The company has suffered sustained operating losses from 2023 to 2025, with net losses attributable to shareholders widening from RMB 118 million to RMB 358 million. In the first half of 2026, losses continued to increase by 85.39% year-on-year to RMB 88.15 million, while revenue fell 25.48%. Due to negative profits and revenue below RMB 300 million in fiscal 2025, the SSE imposed a delisting risk warning, changing the stock abbreviation to '*ST Jiuding' on April 30, 2026. The share price has fallen sharply from over RMB 26 in early 2026 to around RMB 7.12 by September 18, a year-to-date decline of 64.17%.
China's *ST Jiuding Under CSRC Investigation After Restating 2023 Profit to Loss
Chinese listed company *ST Jiuding (formerly Jiuding Investment) has been placed under investigation by the China Securities Regulatory Commission (CSRC), according to an announcement cited by East Money. The company stated it is cooperating with the probe. The investigation follows a series of financial corrections and regulatory actions. On April 29, 2026, the company announced a retrospective adjustment of its 2023 and 2024 financial statements, primarily due to inventory impairment and investment property fair value changes. This adjustment turned its 2023 net profit attributable to shareholders from a profit of RMB 15.3 million to a loss of RMB 118 million. The 2024 net loss was revised from RMB 268 million to RMB 135 million. Earlier, on June 3, 2026, the Shanghai Stock Exchange publicly reprimanded the company and its former top executives for inaccurate disclosure in its 2025 earnings forecast. The initial forecast estimated operating revenue between RMB 320-350 million, but was later corrected to RMB 270-290 million. Because the final adjusted operating revenue fell below RMB 300 million with negative net profit, the company's shares were designated as *ST (delisting risk warning) starting April 30, 2026.
Read sourceChina's *ST Jiuding Placed Under Investigation by Securities Regulator Over Disclosure Violations
On September 18, *ST Jiuding, a Chinese company listed on the Shanghai Stock Exchange, announced it had received a 'Notice of Case Filing' from the China Securities Regulatory Commission (CSRC) regarding suspected violations of information disclosure regulations related to its inventory and investment properties for 2023-2024. The company stated all business operations are normal and it will cooperate with the investigation. This follows a prior public reprimand from the Shanghai Stock Exchange on June 5 for inaccurate information disclosure, which targeted then-Chairman Wang Liang, then-General Manager Wang Xin, and then-CFO and Board Secretary Yi Lingjie. *ST Jiuding's main business includes private equity investment management, real estate development, and robotics. Financially, the company reported operating revenue of RMB 59.89 million in the first half of the year, down 25.5% year-on-year, with a net loss of RMB 88.15 million, widening from the prior year. Due to its operating revenue falling below RMB 300 million and negative net profit in fiscal year 2025, its shares were subjected to delisting risk warnings on April 30, 2026. If the same conditions persist in fiscal year 2026, the shares will be delisted. As of September 18, the share price was RMB 7.12, with a market capitalization of RMB 3.087 billion.
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