--- title: "Aier’s Stock Falls After Chinese Eyecare Firm’s Chair Is Caught Up in Psychiatric Hospital Insurance Fraud" type: "News" locale: "en" url: "https://longbridge.com/en/news/275086851.md" description: "Shares of Aier Eye Hospital Group fell 3.8% to CNY11.07 after reports emerged linking Chairman Chen Bang to a psychiatric hospital insurance fraud case. Chen controls Xiangyang Hengtaikang Hospital, implicated in defrauding the national medical insurance fund. Aier clarified that the hospital is a joint venture and not a subsidiary. The National Healthcare Security Administration has initiated investigations into psychiatric institutions in Hubei province due to fraudulent practices. The complexities of regulating psychiatric hospitals pose challenges for oversight and patient care." datetime: "2026-02-06T07:12:54.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/275086851.md) - [en](https://longbridge.com/en/news/275086851.md) - [zh-HK](https://longbridge.com/zh-HK/news/275086851.md) generator: "portal-rs" --- # Aier’s Stock Falls After Chinese Eyecare Firm’s Chair Is Caught Up in Psychiatric Hospital Insurance Fraud (Yicai) Feb. 6 -- Shares of Aier Eye Hospital Group declined after the chairman of the Chinese ophthalmologist hospital chain was said to be involved in the case of several psychiatric hospitals defrauding the national medical insurance fund. Air \[SHE: 300015\] closed down 3.8 percent at CNY11.07 (USD1.59) in Shenzhen today, after sinking as much as 5.2 percent in the morning. Xiangyang Hengtaikang Hospital, one of the psychiatric hospitals involved in this fraud case, is actually controlled by Aier’s Chairman Chen Bang, Jiemian News reported yesterday. Moreover, the Chinese news outlet revealed that Chen has invested and holds controlling stakes in about 20 psychiatric institution chains through Aier Medical Investment. Aier Medical is Aier’s largest shareholder with a 34 percent stake. Chen owns 80 percent of Aier Medical and holds a direct stake of nearly 16 percent in Aier. In response to the Jiemian News report, Aier said today that Xiangyang Hengtaikang Hospital is a joint venture established by Aier Medical and other investors, clarifying that it is not a subsidiary of Aier, and that there is no equity relationship or business connection between them. Hengtaikang is operated by the hospital management team, and Aier Medical does not participate in its daily operations, Aier added. On Feb. 3, The Beijing News published an investigation report stating that several psychiatric hospitals in Xiangyang and Yichang, China’s central Hubei province, admitted normal individuals without mental illnesses and fabricated medical conditions in order to defraud the national medical insurance fund. Right afterward, Hubei established a joint investigation team to conduct an in-depth inquiry in Xiangyang and Yichang. On Feb. 4, the National Healthcare Security Administration issued a notice requiring local authorities to conduct self-checks on psychiatric institutions and unveiled that it would carry out special inspections this year. Compared to that of regular medical institutions, the supervision of psychiatric hospitals is more challenging because it is difficult for the medical insurance department to independently assess whether their diagnostic and treatment practices comply with regulations, meaning that it requires the assistance of professional organizations for verification, a medical insurance expert told Yicai. The handling of violations found in psychiatric hospitals is also a big challenge. If a psychiatric hospital has its practice license revoked, it may result in genuine mental health patients losing their places of care and being released, which could pose risks to society, the expert noted. Editors: Dou Shicong, Futura Costaglione ### Related Stocks - [300015.CN](https://longbridge.com/en/quote/300015.CN.md) ## Related News & Research - [Sand Grove Capital lifts Irish Continental stake to 4.49% from 3.58%](https://longbridge.com/en/news/296742335.md) - [14:06 ETStarlight Children's Foundation Announces 2026 Starlight Awards Honorees](https://longbridge.com/en/news/296524956.md) - [Atomic Eagle Re-Establishes 60% Operating Interest in Madaouela Uranium Project](https://longbridge.com/en/news/296731180.md) - [Predict signs Italy healthcare distribution deal for Robocore’s “temi” service robots](https://longbridge.com/en/news/296769892.md) - [Msheireb Properties partners with Inc. Arabia to host business innovation events in Doha](https://longbridge.com/en/news/296761630.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**