Shanghai DZH controversies

Claims against former executives

The China Securities Investor Service Center sued five DZH executives, including Zhang Changhong, seeking compensation for investors. The action was described as an unusual case in which a company pursued its own directors and supervisors.

Arrest of Zhang Changhong

Police arrested former chairman Zhang Changhong on 26 April 2019 on suspicion of illegally disclosing important information.

Investors sue DZH and seek compensation

Lawsuit filed

In a controversy noted in reports, investors sued Shanghai DZH and sought 638 million yuan in compensation. The report states that the investors filed the lawsuit against the company and pursued the compensation amount. The event was reported on October 10, 2019. The report provides no further details on the identities of the investors, the specific claims, or the outcome of the lawsuit.

False-disclosure penalties

In July 2016, the CSRC fined DZH 600,000 yuan after finding that the company had overstated profit by approximately 121 million yuan. Former chairman Zhang Changhong was separately fined, barred from the securities industry for five years, and removed from leadership.

CSRC investigation into information disclosures

The CSRC began investigating DZH in April 2015 over alleged violations connected with information disclosed in the company's 2013 annual report. The scrutiny also contributed to the failure of the proposed Xiangcai Securities acquisition.

Bloomberg industrial-design lawsuit

Bloomberg sued DZH in April 2011, alleging infringement involving industrial design and seeking 5 million yuan in compensation. DZH argued that the designs were common in the financial-data industry. Bloomberg withdrew the case in January 2013.