Pencil Group reports an $8.3 million investment loss; CEO Zhang Xiaolong resigns following controversial remarks.

Huo Xing Cai Jing reports that on July 28, Fenbi Group (02469.HK), a Hong Kong-listed company, released an interim performance forecast, additionally disclosing that between July 1 and July 7, 2026, the group sold several ETF products and listed securities acquired through public markets, recording a total investment loss of approximately $8.3 million (about RMB 56.15 million). As of the close of business last Friday (July 24), its investments measured at fair value through profit or loss still included listed securities of three public companies, with a total value of approximately $8.5 million. The board stated it would closely monitor the performance of the investment portfolio. Notably, on June 3, Zhang Xiaolong, CEO of Fenbi Education—the leading provider of civil service exam preparation in China—was invited to give a career planning lecture at Renmin University of China. Originally scheduled to focus on civil service exams, he abruptly changed the topic to “Career Planning in the AI Era,” enthusiastically promoting stock trading as the optimal future career path, urging listeners to prioritize tech stocks, even better U.S. stocks, and suggesting families trade together. He boasted that he had earned RMB 53 million in one month by investing RMB 80 million in cash. After receiving a cold response from the audience, Zhang lost his temper, swore at students, and stormed off the stage. At the beginning of the month, Zhang stepped down from his roles as executive director, CEO, and chairman of the board. According to market data, Fenbi Group (02469.HK) plunged nearly 17% today, hitting a new all-time low share price.