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China Hands Rare 10-Year Sentence to Banker in Pre-IPO Deal

Published: Dec. 10, 2025 4:31 p.m. GMT+8

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A Chinese court has sentenced a former senior banker at state-owned China Securities Co. Ltd. to 10 years and two months in prison for illicit gains tied to a pre-IPO share deal, according to a verdict issued Friday.

The case marks a rare ruling that could expand the situations in which investment bankers at state-controlled firms may be treated as state employees, exposing the industry to sharper criminal risks.

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Former China Securities banker Du Pengfei was sentenced to 10 years and 2 months in prison for illicit gains from a pre-IPO share deal.
The court classified him as a state employee, raising his offense to bribery by a state functionary, after he profited about 2 million yuan from undisclosed shares.
The ruling signifies increased criminal risks for investment bankers at state-owned firms, with tougher scrutiny for conflicts of interest.

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Who’s Who

China Securities Co. Ltd.: China Securities Co. Ltd. is a state-owned company in China. A former senior banker, Du Pengfei, from its investment banking division, was sentenced to over 10 years in prison for illicit gains from a pre-IPO share deal. He profited from over 4 million yuan after holding undisclosed shares in Guizhou Zhenhua E-chem Inc. The court's ruling determined he should be treated as a state employee, leading to a more severe bribery charge.

Guizhou Zhenhua E-chem Inc.: Guizhou Zhenhua E-chem Inc. (688707.SH) is a company that went public on Shanghai's STAR Market in 2021. Du Pengfei, a former senior banker at China Securities Co. Ltd., illicitly obtained shares in this company during its listing preparations, later profiting from their sale after the lockup expired.

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