In an unprecedented leadership crisis, the Chinese shareholders were sentenced to finances in the French Financial Market Authority (authorité of the Marchés Financier, AMF) for a total of 1.7 million euros. The AMF announced this on Thursday.
“In its decision of June 10, 2025, the sanction commission sanctioned: inside the SMCP for violations of its reporting requirements and the spread of false or misleading information,” said the AMF in a message.
In detail, “imposed fines of 400,000 euros against European Topsoho, 300,000 euros against Dynamic Treasure Group and one million euros against Chenran Qiu”, all of which are connected with a complex financing structure, the statement continues.
SMCP and the mystery of 16 percent
The majority shareholder: In SMCP at the time of the IPO in 2017, the Chinese conglomerate Shandong Ruyi was via an investment company registered in Luxembourg, European Topsoho.
This was highly indebted and was delayed in 2021. She lost most of the capital to her believers: inside, which are summarized in the glass unit. Today Glas holds 29 percent of the SMCP capital and wants to sell its shares to get the borrowed money back. Previously, European Topsoho had sold a 16 percent participation for one euro to the daughter of the founder of Shandong Ruyi, Chenran Qiu, which is housed in the Trust Dynamic Treasure Group on the British Virgin Islands. Since then, the SMCP group has not known who owners: in this 16 percent of its capital, which result from the sale of a block of twelve million shares in 2021.
“The sanction commission initially found that European Topsoho and Dynamic Treasure Group have violated their reporting obligations by failing to report the AMF and SMCP to exceed threshold values for the participation in the capital and voting rights of SMCP,” explains the AMF in a message. “The Commission also believed that European Topsoho committed a violation of market manipulation through the spread of false or misleading information,” it continues.
European Topsoho had explained by press release that his managing director, Chenran Qiu, was not a shareholder of Dynamic Treasure Group and whose business does not “in any way” control what is wrong, according to the stock market supervision.
“The emittent SMCP is sanctioned in the same procedure for a violation of a different kind, namely due to the violation of its obligation to maintain the confidentiality of insider information,” the AMF continued. The fine is 20,000 euros.
This article was used with digital tools translated.
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