Huaheng Biology Founder Guo Henghua Arrested Over RMB 243 Million Deposit Absorption; H-Share Plan Terminated
Guo Henghua, founder and actual controller of STAR Market-listed Huaheng Biology, has been approved for arrest on suspicion of illegally absorbing RMB 243 million in public deposits. Her family received a detention notice on June 24, 2026, and prosecutors approved her arrest on July 31. Guo has resigned from all positions, including chairman and general manager, and the company's planned H-share listing has been terminated. The case relates to a private finance company founded by Guo in her early years.
Guo Henghua, founder and actual controller of STAR Market-listed Huaheng Biology (688639. SH), has been approved for arrest by prosecutors on suspicion of illegally absorbing public deposits. On June 24, 2026, Guo's family received a detention notice from the Shushan District Branch of the Hefei Municipal Public Security Bureau, indicating that she had been placed under criminal detention on suspicion of illegally absorbing public deposits, with the investigation unrelated to the company's operations. On August 1, Huaheng Biology announced that Guo's arrest had been approved on July 31.
Guo has resigned from all positions, including chairman and general manager, and the company's planned H-share listing has been terminated. The case involves a private financial company known as the "Jinguo Xi" group, which Guo founded in her early years. Operated under one of her close managers, the company had been embroiled in lending disputes and cases of illegal absorption of public deposits both online and offline. Six years later, the old case has drawn renewed attention, with the amount of illegally absorbed deposits reaching RMB 243 million.