On April 25, 2025, the China Securities Regulatory Commission (CSRC) initiated investigations into both Dongni Electronics and Hongtian Shares. Hongtian Shares faces suspicion of neglecting to disclose mandatory related-party transactions, with its director Shu Zhigao also under scrutiny for allegedly withholding significant information. Dongni Electronics, which has a prior history of regulatory penalties for failing to disclose a capital preservation and guaranteed return agreement during its private share placement, is now likewise under investigation. Legal experts have since indicated that eligible investors may pursue compensation following these developments.
