FINANCE

China Moves to Delist STAR Market Firm Over IPO Fraud

Published: May. 13, 2026 6:00 p.m. GMT+8

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China’s securities regulator has paved the way for the delisting of a Shanghai STAR Market-listed tech company over financial fraud and fraudulent issuance, marking the Nasdaq-style board’s third mandatory delisting for major legal violations.

The China Securities Regulatory Commission (CSRC) said it had issued a preliminary penalty notice to Suzhou Qingyue Optoelectronics Technology Co. Ltd. (688496.SH), proposing a 172.9 million yuan ($25 million) fine. The Shanghai Stock Exchange will initiate delisting procedures.

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CSRC proposes 172.9M yuan ($25M) fine for Suzhou Qingyue Optoelectronics (688496.SH) over financial fraud, triggering STAR Market delisting—third for major violations.
Violations: understated impairments, fabricated chip sales, concealed taxes; false IPO data deemed fraudulent issuance.
Sponsor GF Securities, auditor BDO China, controller Gao Yudi to establish investor compensation fund (hundreds of millions yuan).

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Who’s Who

Suzhou Qingyue Optoelectronics Technology Co. Ltd.: Suzhou Qingyue Optoelectronics Technology Co. Ltd. (688496.SH) faces delisting from Shanghai STAR Market after CSRC probe revealed financial fraud: inflated profits via understated impairments, fake chip sales, hidden taxes, and fraudulent IPO data. Proposed fine: 172.9M yuan ($25M). Sponsor GF Securities, auditor BDO, and controller Gao Yudi to fund investor compensation (hundreds of millions yuan). Third such delisting.

GF Securities Co. Ltd.: GF Securities Co. Ltd., the IPO sponsor for Suzhou Qingyue Optoelectronics Technology Co. Ltd., pledged with the auditor and actual controller to establish an advance investor compensation fund, potentially totaling several hundred million yuan, per CSRC.

BDO China Shu Lun Pan CPAs LLP: BDO China Shu Lun Pan CPAs LLP, auditor for Suzhou Qingyue Optoelectronics Technology Co. Ltd., pledged with GF Securities and controller Gao Yudi to establish an advance investor compensation fund, per CSRC. The fund may total several hundred million yuan.

AI generated, for reference only