"Solo Performance" Misleads Investors, Enjet Semiconductor Fined 8 Million Yuan for Orchestrating False Interactive Trading

Under regulatory oversight, another A-share listed company has staged a “hotspot riding” style disclosure.

On March 17, Yingji Xin (688209) announced that the company and three senior executives were fined a total of 8 million yuan by the Shenzhen Securities Regulatory Bureau for violations related to information disclosure, with the company fined 4 million yuan, Chairman and CEO Chen Xin fined 2.1 million yuan, Chairman and General Manager Huang Hongwei fined 1.1 million yuan, and Secretary of the Board Wu Renchao fined 800,000 yuan.

This penalty directly targets the company’s misconduct in artificially creating Q&A on interactive platforms and riding the hot topic of brain-machine interfaces, becoming another typical case of strict regulatory enforcement on information disclosure in the A-share market.

Creating Hot Topics Through Q&A

Regulatory investigations found that Yingji Xin’s misconduct was carefully planned. On January 5, 2026, the company posted a question about progress in brain-machine interface chips on the Shanghai Stock Exchange e-Interaction platform. The next day, after market close, the official reply claimed that the company had entered the brain-machine interface chip field and highlighted the IPA1299 chip, claiming that the product’s performance rivals that of leading overseas chips and that it had been mass-produced and shipped.

Regulatory checks revealed that this statement was seriously inconsistent with facts: First, the technical approach differed significantly; the company’s product is non-invasive, fundamentally different from the mainstream invasive approach overseas. Second, the product’s ownership was questionable; the IPA1299 chip was jointly developed with an affiliated company, not independently developed by the company. Third, the operational status was false; the product was still in the market cultivation stage, with no large-scale sales or revenue, and the so-called “mass production and shipment” was a gross exaggeration.

After this misleading information was released, market attention surged, and the company’s stock price deviated significantly from market trends, showing abnormal fluctuations, constituting a misleading statement as defined by the Securities Law.

Repeated Violations Under Regulatory Pressure

In fact, Yingji Xin was not the first to cross regulatory lines. As early as January 7, the Shanghai Stock Exchange issued a regulatory warning to the company and responsible persons, pointing out that their responses were inaccurate, incomplete, and lacked sufficient risk warnings, requiring them to stop misleading investors.

However, the company failed to make timely corrections. On February 13, the China Securities Regulatory Commission (CSRC) officially filed an investigation into the company for suspected violations of information disclosure. The gap between the warning and the investigation was only 37 days, reflecting the zero-tolerance attitude of the capital market regulators. The maximum fine of 8 million yuan is not only a severe punishment for the misconduct but also a clear signal to the market that riding hot topics and speculating on concepts will be met with strict penalties.

Financial data shows that Yingji Xin’s total operating revenue in 2025 was 1.612 billion yuan, a year-on-year increase of 12.65%; net profit attributable to the parent was 177 million yuan, up 42.81%. The main business focuses on power management, fast-charging protocols, and other chip fields, applied in consumer electronics and other scenarios. As of the close on March 17, the stock price was 21.03 yuan per share, with a total market value of 9.1 billion yuan. Despite stable fundamentals, the company’s deliberate illegal hype appears even more absurd.

Why Is Hotspot Riding Still Widespread?

The Yingji Xin incident is not an isolated case. Recently, companies like Yahui Long and Rongbai Technology have also been fined for violating disclosure rules by riding hot topics, reflecting three deep-rooted issues in the long-term development of the A-share market.

1. Market capitalization obsession overrides compliance

Some listed companies equate stock price increases with operational success, neglecting R&D investment and performance growth, instead using popular concepts to quickly boost market value. Brain-machine interfaces, as a frontier technology with high attention and imagination potential, have become prime targets for hype. Senior executives knowingly exaggerate product readiness despite not reaching large-scale production, fundamentally distorting market value management and harming investors’ interests for short-term stock gains.

2. Disclosure compliance mechanisms are ineffective

The Shanghai Stock Exchange e-Interaction platform, a formal channel for communication between listed companies and investors, should uphold principles of truthfulness, accuracy, and completeness. However, Yingji Xin turned it into a tool for hype. From planned questions to false replies, no internal compliance review was triggered, exposing serious governance flaws: the secretary of the board, as the primary responsible person for disclosure, failed to fulfill review obligations; senior management ignored regulatory rules; internal control processes were completely ineffective, enabling violations.

3. Severe imbalance between violation costs and gains

Past violations of riding hot topics often ended with warnings or small fines, leading some companies to take risks. This time, Yingji Xin was fined 8 million yuan, with top executives fined up to 2.1 million yuan. The penalty is significant, but compared to potential gains from stock price fluctuations, some companies still consider the risk worthwhile. Under stricter regulation, some firms continue to push boundaries, highlighting a weak compliance awareness and a fierce conflict between profit pursuit and regulatory discipline.

Regulatory Enforcement

This penalty is based on Article 197, Paragraph 2 of the Securities Law, targeting misleading disclosures, demonstrating the authorities’ firm and precise crackdown.

From a market perspective, such behaviors severely undermine the principles of fairness: they mislead small and medium investors into blindly following trends, distort market pricing mechanisms, degrade market ecology by allowing bad actors to displace good ones, and undermine confidence in regulation, threatening the healthy development of the capital market.

Currently, the A-share market has established a full regulatory cycle of pre-warning, mid-term investigation, and post-penalty. The Shanghai Stock Exchange’s quick warnings, the CSRC’s rapid investigations, and strict penalties from securities regulatory bureaus create an efficient response system that leaves no room for hotspot riding. Additionally, regulators have clarified that responses on interactive platforms are included in disclosure oversight, filling a regulatory gap in non-periodic reports.

Source: Chunhua Finance

Disclaimer: This article is for informational sharing only and does not constitute investment advice. Anyone making investment decisions based on this information does so at their own risk.