Western Securities was recently summoned by the Shenzhen Stock Exchange because its verification duties were not adequately performed while sponsoring the IPO of Naipu shares. The Shenzhen Stock Exchange pointed out that Western Securities failed to pay sufficient attention to and prudently verify irregularities in Naipu shares' internal controls related to revenue recognition and selling expenses, and that its verification of sales service providers, research and development investment, and whistleblower reports was also inadequate. The Shenzhen Stock Exchange determined that Western Securities violated the relevant provisions of the Stock Issuance and Listing Review Rules, 2024 revision, and sponsor representatives Feng Linsong and Qu Xiaolong also received regulatory letters. Naipu shares and Western Securities both withdrew their IPO application documents in March 2025.
Western Securities Co LtdSummoned by Shenzhen Stock Exchange for inadequate IPO verification duties, violating review rules.
