# corporate governance
Latest news and articles about corporate governance
Total: 47 articles found
The Cash‑Wall Tycoon: How Fang Wei’s New‑Year Bonuses Burnish a Brand — and Mask Financial Strain
Fangda Group’s flamboyant year‑end ‘cash wall’ has become a viral symbol of corporate generosity in China, coinciding with chairman Fang Wei’s rise to become Liaoning’s richest person. The payouts and public spectacles bolster employee morale and brand image but obscure a heavily leveraged corporate structure and acquisition setbacks that increase financial risk.
Maxscend Executive’s Divorce Transfers Nearly Rmb1.3bn in Stock but Control Remains Intact
Maxscend’s co‑controller Xu Zhihan has transferred 17.15m shares (about Rmb1.3bn at current prices) to his ex‑wife as part of a divorce settlement. The transfer was registry‑based, includes caps on annual disposals, and does not change the company’s controlling block due to existing voting agreements. The move coincides with a weak earnings outlook as the company shifts toward a Fab‑Lite model.
China’s Securities Regulator Hits Tianfeng with Maximum Fines and Lifetime Bans over Illicit Financing of Controlling Shareholder
The China Securities Regulatory Commission has proposed top fines and lifetime market bans after finding that Tianfeng Securities illegally financed its largest shareholder and failed to disclose related‑party transactions from 2020 to 2022. The penalties — including RMB 25 million in corporate fines, RMB 34.8 million in individual fines and lifetime bans for three executives — signal tougher enforcement on conflicts of interest and weaker tolerance for broker‑sponsor collusion.
Sudden Detention of Ex‑Tycoon Li Zhaoting Deepens Dongxu Group Fallout
Li Zhaoting, the former head of the Dongxu business empire and once among Hebei’s richest individuals, was detained by Shijiazhuang police on February 13 as investigations continue. Regulators had already imposed roughly RMB 1.7 billion in penalties and lifetime market bans related to disclosure violations and alleged fraudulent share issuance; only Jia Linjie remains listed from the Dongxu orbit and says operations are normal.
China’s Tianfeng Securities Cleans House After CSRC Action, Marks End of ‘Historical’ Violations
Tianfeng Securities has received penalty and regulatory notices from the CSRC tied to historical violations under its former private owners. Since Hubei Hongtai Group became the controlling shareholder in 2023, Tianfeng has cooperated with investigators, recovered misused funds and overhauled governance—moves the company and market observers say effectively close the book on legacy risks and position the broker for renewed growth under tighter compliance standards.
When Founders Step Aside: What Yu Donglai’s Second Retirement Reveals About China’s Corporate Transition
Yu Donglai, founder of Henan retailer Pangdonglai, has formalised his retirement after a prior symbolic exit failed to stick. He has relinquished executive power to a decision committee while retaining an advisory role; the move — backed by explicit age limits for executives — is a rare example of a founder stepping aside at a company high point, but maintaining the firm’s culture without his magnetic leadership remains a key uncertainty.
400‑Year‑Old Knife‑and‑Scissors Maker Loses Majority After Debt‑Driven Share Auction
Zhang Xiaoquan, a 400‑year‑old knife‑and‑scissors maker listed in 2021, has seen its largest shareholder position change hands after judicial auctions triggered by its controlling group’s debt crisis. The company now lacks a controlling shareholder, faces concentrated revenue risk and governance uncertainty, even as a new investor with e‑commerce credentials forecasts a sizeable profit rebound for 2025.
Divorce Forces Transfer of Rmb1.29bn Stake in China RF‑Chip Firm as Company Reports First Annual Loss
Zhuosheng Micro’s chairman, Xu Zhihan, has transferred roughly half of his directly held shares — valued at about Rmb1.29 billion (≈US$190m) — to his ex‑wife as part of a divorce settlement. The move comes as the company warned of its first annual loss since listing in 2019, raising investor concerns about potential share sales, governance stability and management continuity.
Vanke’s Shadow Network: Middlemen, Billions of Receivables and a Corporate‑Governance Crisis
An investigative report links a network of ‘shadow’ firms tied to Vanke insiders with a string of quick‑turn land and project transfers into the listed group. These arrangements coincide with hundreds of billions of yuan in intercompany receivables and large impairment charges that have substantially worsened Vanke’s financial losses and raised fresh governance questions.
Founder of Buchang Pharmaceuticals Faces Court-Imposed Consumption Ban as Family Hotel Owes RMB 16m
An 84‑year‑old founder of Buchang Pharmaceuticals has been subject to a court‑ordered ban on high‑end consumption after his family‑owned hotel failed to repay a RMB 16 million loan. The enforcement action, though separate from the listed drugmaker, spotlights governance, related‑party risk and the company’s long reliance on marketing over R&D amid a sharply reduced market valuation.
Buchang Pharma Founder Hit with Consumption Ban After Family Hotel Defaults on Rmb16m Loan
An enforcement order has placed Buchang Pharmaceutical founder Zhao Buchang on China’s restricted‑consumption list after a family‑owned hotel failed to fully repay a Rmb16 million loan. The case is legally separate from the listed company but raises governance and related‑party concerns given the Zhao family’s recent local property acquisitions and the founder’s controlling stakes in non‑listed assets.
Chinese Listed Huatu Unit Warned for Hidden Funding and Undisclosed Related‑Party Deals; Subsidiary Fined for Unregistered Publications
Sichuan securities authorities ordered corrective measures and issued warning letters to Huatu Shanding and four senior executives after finding undisclosed financial support for an affiliate and delayed reporting of related‑party transactions totaling about RMB 69 million. A Huatu education subsidiary in Daqing was also fined and had exam materials confiscated for failing to register publications. Regulators recorded the actions in the market integrity database, signalling reputational and compliance risks for the group.