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Tongtech Chairman Faces Criminal Probe in Accounting Fraud Case

Published: Jul. 14, 2026 2:32 a.m. GMT+8

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Tongtech, once considered a standard-bearer in China’s campaign to replace foreign technology with domestic alternatives, was a leading domestic provider of middleware software. Photo: VCG

The chairman of a delisted Chinese software developer has been taken into police custody for his alleged role in a multiyear financial fraud scheme, sources with knowledge of the matter told Caixin.

Qu Tao, who took the helm of Beijing Tongtech Co. Ltd. in March, was subjected to criminal coercive measures about half a month ago, the sources said. The company has not publicly disclosed the action.

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Qu Tao, chairman of delisted Tongtech, detained for alleged role in fraud inflating revenue by 432m yuan and profits by 314m yuan.
CSRC had fined mastermind Huang Yongjun 26.5m yuan, banned him 10 years; he fled overseas. Qu had prior tax fraud detention.
Investor protection agency started class-action suit; CSRC and police emphasize delisting does not exempt accountability.

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Who’s Who

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What Happened When

2019：: Beijing Tongtech Co. Ltd. began using a wholly owned subsidiary to fake business operations and prematurely recognize revenue, inflating revenue by 432 million yuan and profits by 314 million yuan.

2021：: Qu Tao was detained on suspicion of tax invoice fraud.

2022：: Tongtech secured a private placement using fabricated financial figures, constituting a fraudulent share issuance.

October 2025：: The China Securities Regulatory Commission (CSRC) announced it would transfer suspected criminal clues to the police regarding Tongtech's financial fraud.

March 2026：: Beijing Tongtech Co. Ltd. was forced to delist from the Shenzhen Stock Exchange, and its shares were transferred to an over-the-counter market. Qu Tao was appointed chairman and general manager of the company.

April 2026：: The CSRC named Tongtech among 18 delisted companies in a special campaign against financial fraud.

May 2026：: The China Securities Investor Services Center initiated a special representative litigation (class-action lawsuit) to help investors seek compensation from Tongtech.

Approximately late June 2026：: Qu Tao was subjected to criminal coercive measures (detention) for his alleged role in the multiyear financial fraud scheme.

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