--- title: "Midea Group — Midea: subsidiary penalties and the Hiconics trading decision" language: en canonical: https://dossiertwist.com/dossiers/midea/regulatory-matters/ as_of: 2026-10-02 keywords: ["Midea","Midea Group","美的集团","KUKA","CLOU","Hiconics","Teka","Wandong"] --- # Midea Group — Midea: subsidiary penalties and the Hiconics trading decision **Question.** Which entities and individuals were actually subject to the retained decisions? **Answer.** The payment, finance and insider-trading records name different recipients. They do not establish a single group-wide conviction or clearance. ## Payment and finance companies - Analysis: An October 2025 report of the central bank’s Shenzhen enforcement disclosure says Shenzhen Midea Payment Technology received a warning and RMB2.81 million fine for account-management and clearing violations. A former deputy general manager separately received a warning and RMB625,000 fine. The corporate and individual penalties concern different recipients and should not be added as one company fine. The report does not establish a later appeal or remediation outcome. [s-d310] - Analysis: A retained 2022 regulatory report says Midea Group Finance was ordered to correct foreign-exchange statistical reporting, warned and fined RMB50,000. It also describes a separate RMB200,000 banking-regulator penalty from 2017 involving bill discounting without a genuine trading basis. These dated subsidiary matters are not erased by the listed issuer’s later statement that it had no significant sanctions within that report’s scope. No complete present-day enforcement clearance is claimed. [s-d311] ## The trader and the acquisition information - Analysis: In its October 2021 decision, the Sichuan securities regulator fined Chen Hong RMB800,000 for insider trading in Hiconics. The decision linked her access to her spouse, a Midea vice-president identified in anonymised form, who knew about the proposed acquisition. The decision penalises the named trader. It must not be converted into a criminal conviction of Midea Group or a finding that every person mentioned was fined. Personal account and identifying details are unnecessary to explain the decision. The retained decision states review and appeal rights; it does not establish a subsequent appeal outcome. [s-d243] ## The separate Zhang decision - Analysis: A separate Sichuan securities-regulator decision dated 3 November 2021 found that Zhang Junsheng traded Hiconics shares using inside information about the Midea acquisition. It confiscated RMB1,736,704.95 of gains and imposed a RMB5,210,114.85 fine. The recipient of this decision is Zhang, not Midea Group or every acquisition participant. It is separate from the Chen Hong decision. Zhang argued that contacts were ordinary friendship, the investment followed public information and sector prospects, he had traded the shares before and cooperated with investigators. The regulator considered and rejected his objections. The administrative decision gives review and litigation rights; no later reversal or appeal outcome is established by the retained materials. [s-d76] [s-x-zhang-decision] ## Sources - [s-d310] Media source · s-d310 - [s-d311] Media source · s-d311 - [s-d243] Regulatory record concerning the identified entity or transaction, www.csrc.gov.cn - [s-d76] Media source · s-d76 - [s-x-zhang-decision] Regulatory record concerning the identified entity or transaction, www.csrc.gov.cn