| Date of investigation announcement: April 13, 2024 |
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| title | CITIC Securities: Announcement on Receiving the Notification of the China Securities Regulatory Commission on Filing |
| Relevant regulations | Securities Law of the People's Republic of China, Administrative Punishment Law of the People's Republic of China |
| Document batch number | ZJLZ No. 03720240049, ZJLZ No. 0032024018 |
| Reason for approval | Because your company is suspected of violating laws and regulations in the process of transferring CNT's 2023 non-public offering of shares in violation of restrictions |
| Approval content | We have decided to file a case against CITIC Securities Co., Ltd. and CITIC Securities Capital Management Co., Ltd |
| Handled by | China Securities Regulatory Commission |
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| Warning notice date: January 12, 2024 |
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| title | Decision on Issuing Warning Letter to CITIC Securities Co., Ltd |
| Relevant regulations | Measures for the Administration of Securities Issuance and Listing Recommendation Business |
| Document batch number | |
| Reason for approval | CITIC Securities Co., Ltd.: Upon investigation, we will find that the convertible bond project of Hengyi Petrochemical Co., Ltd. (the issuer) sponsored by your company has lost money in the year when the issuer's securities were issued and listed, and its operating profit has declined by more than 50% over the previous year. |
| Approval content | I will decide to take administrative supervision and management measures to issue a warning letter to your company. |
| Handled by | China Securities Regulatory Commission |
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| Warning notice date: October 27, 2023 |
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| title | Decision on Issuing Warning Letter to Wang Shengya |
| Relevant regulations | Measures for the Administration of Securities Brokerage Business, Measures for the Supervision and Administration of Directors, Supervisors, Senior Managers and Practitioners of Securities Fund Operating Institutions |
| Document batch number | JZJM [2003] No. 031 |
| Reason for approval | Wang Shengya: It was found that during your employment in the Huanghai Road Securities Business Department of CITIC Securities Co., Ltd. in Tianjin Binhai New Area, you had problems in providing investors with answers to key questions of risk assessment, returning WeChat red envelopes to investors, and promising investors to guarantee principal and interest |
| Approval content | Our bureau has decided to take the supervision and management measures of issuing a warning letter to you. |
| Handled by | Tianjin Securities Regulatory Bureau |
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| Warning notice date: October 27, 2023 |
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| title | Decision on Issuing a Warning Letter to CITIC Securities Co., Ltd. Tianjin Binhai New Area Huanghai Road Securities Business Department |
| Relevant regulations | Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies |
| Document batch number | JZJM [2003] No. 30 |
| Reason for approval | CITIC Securities Co., Ltd. Tianjin Binhai New Area Huanghai Road Securities Business Department: It is found that some employees of your business department have provided investors with answers to key questions of risk assessment, returned WeChat red envelopes to investors, and promised investors principal and interest protection during the period of engaging in securities brokerage business marketing activities. |
| Approval content | Our bureau has decided to take the supervision and management measures of issuing a warning letter to your business department. |
| Handled by | Tianjin Securities Regulatory Bureau |
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| Warning notice date: October 20, 2023 |
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| title | Decision on Issuing a Warning Letter to Zhou Wei |
| Relevant regulations | Interim Measures for the Supervision and Management of Private Investment Funds |
| Document batch number | |
| Reason for approval | Zhou Wei: Upon investigation, we found that during your practice in Nanchang Xianshi First Road Securities Business Department of CITIC Securities Co., Ltd. from 2015 to 2017, you privately organized investors to sign an agreement to jointly purchase a private fund, and participated in the purchase of the fund by contributing to a designated account. The above behaviors are not in conformity with the provisions of Paragraph 2 of Article 4 and Paragraph 1 of Article 12 of the Interim Measures for the Supervision and Administration of Private Investment Funds (CSRC Order No. 105). |
| Approval content | Our bureau has decided to take administrative supervision measures to issue a warning letter to you. |
| Handled by | Jiangxi Securities Regulatory Bureau |
|
| Warning notice date: September 25, 2023 |
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| title | Warning Letter (CITIC Securities Co., Ltd., Fang Xing) |
| Relevant regulations | Member Management Rules, Member Management Business Guidance No. 1 - Member Transaction and Related System Management |
| Document batch number | SZH [2003] No. 654 |
| Reason for approval | On June 19, 2023, the centralized trading system of CITIC Securities Co., Ltd. (hereinafter referred to as CITIC Securities) was abnormal, which affected some customer transactions. It was found that CITIC Securities had problems such as insufficient security in the construction of computer room infrastructure and omission in the reliability management of information system equipment. |
| Approval content | We are now taking self-discipline supervision measures for CITIC Securities and Fangxing with written warnings |
| Handled by | Shenzhen Stock Exchange |
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| Warning notice date: August 29, 2023 |
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| title | Decision on Giving Written Warnings to CITIC Securities Co., Ltd. and Relevant Responsible Persons |
| Relevant regulations | Management Rules for Members of Shanghai Stock Exchange |
| Document batch number | Decision on Supervisory Measures of Shanghai Stock Exchange [2003] No. 37 |
| Reason for approval | It was found that on June 19, 2023, CITIC Securities Co., Ltd. (hereinafter referred to as CITIC Securities) Beijing Headquarters Building machine room was shut down abnormally due to the interruption of power supply of one UPS, resulting in the abnormal shutdown of four centralized trading system servers, which eventually led to some customers being unable to log in to APP or online transactions normally. The abnormal time of the system service capability of this incident was from 10:7 to 10:26, which met the criteria for major incidents specified in the Measures for Reporting, Investigating and Handling Cyber Security Incidents in the Securities and Futures Industry. The above situation reflects that CITIC Securities has some problems in terms of transaction and related system management, such as omission in reliability management of information system equipment, inadequate implementation of safety operation management system, etc. |
| Approval content | Take written warning supervision measures against CITIC Securities Co., Ltd. and Fang Xing, chief information officer and administrative head of the Information Technology Center. |
| Handled by | Shanghai Stock Exchange |
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| Warning notice date: July 13, 2023 |
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| title | Decision of Shenzhen Securities Regulatory Bureau on Issuing Warning Letter to Fang Xing, Hou Min and He Tao |
| Relevant regulations | Administrative Measures for Network and Information Security of Securities and Futures Industry |
| Document batch number | Decision on Administrative Supervision Measures [2013] No. 101 |
| Reason for approval | Fang Xing, Hou Min, He Tao: After investigation, we found that the network security incident of CITIC Securities Co., Ltd. on June 19, 2023 had problems such as insufficient security in the construction of computer room infrastructure and omission in the reliability management of information system equipment. The above acts violate the relevant provisions of Article 13 of the Administrative Measures for Network and Information Security of Securities and Futures Industry (CSRC Order No. 218, hereinafter referred to as the Administrative Measures for Network and Information Security). |
| Approval content | Our bureau has decided to take administrative supervision measures to issue a warning letter to you. |
| Handled by | Shenzhen Securities Regulatory Bureau |
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| Warning notice date: July 13, 2023 |
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| title | Decision of Shenzhen Securities Regulatory Bureau on Issuing Warning Letter to CITIC Securities Co., Ltd |
| Relevant regulations | Administrative Measures for Network and Information Security of Securities and Futures Industry |
| Document batch number | Decision on Administrative Supervision Measures [2013] No. 102 |
| Reason for approval | CITIC Securities Co., Ltd.: Upon investigation, our bureau found that your company had some problems in the network security incident on June 19, 2023, such as insufficient security in the construction of computer room infrastructure, and omission in the reliability management of information system equipment. The above acts violate the relevant provisions of Article 13 of the Administrative Measures for Network and Information Security of Securities and Futures Industry (CSRC Order No. 218, hereinafter referred to as the Administrative Measures for Network and Information Security). |
| Approval content | Our bureau has decided to take administrative supervision measures to issue a warning letter to your company. |
| Handled by | Shenzhen Securities Regulatory Bureau |
|
| Warning notice date: May 17, 2023 |
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| title | Huayu Mining: Decision on giving regulatory warnings to the recommendation institutions and recommendation representatives of Tibet Huayu Mining Co., Ltd |
| Relevant regulations | Measures for the Administration of Securities Issuance and Listing Recommendation Business, Shanghai Stock Exchange Stock Listing Rules (Revised in 2020), and Shanghai Stock Exchange Disciplinary and Supervisory Measures Implementation Measures |
| Document batch number | Decision of Shanghai Stock Exchange on Regulatory Measures [2013] No. 22 |
| Reason for approval | According to the facts found out in the Decision on Issuing Warning Letter to CITIC Securities Co., Ltd., Xu Xin and Song Yongxin ([2023] No. 9) issued by the Tibet Regulatory Bureau of the CSRC, CITIC Securities Co., Ltd. (hereinafter referred to as CITIC Securities), as Tibet Huayu Mining Co., Ltd. (hereinafter referred to as Huayu Mining or the Company) The sponsor institution of the initial public offering and listing project has the following problems in its continuous supervision from 2017 to June 2018. First, on-site inspection of related parties and related transactions was not in place, due professional prudence was not maintained and prudent verification was not carried out, and the issuer was not supervised to effectively prevent related parties from illegally occupying the issuer's funds. First, the project team of CITIC Securities carried out regular on-site inspection on Huayu Mining on May 10, 2017, and CITIC Securities did not give proper inspection opinions on the related party transactions of Huayu Mining in 2017 in the inspection report. At the same time, no supporting materials for on-site inspection of related parties and related transactions were found in the working paper, which did not form evidence support for on-site inspection conclusions of related parties and related transactions. Second, on April 20, 2018, the CITIC Securities project team carried out a special on-site inspection. During the inspection process, it did not perform the prudential inspection procedures on the implementation of Huayu Mining's related party transaction system, internal control, and whether there are other undisclosed related parties and related party transactions. Second, the verification of abnormal changes in sales revenue and major customers was not sufficient and adequate verification procedures were not adopted. During the period of continuous supervision, the CITIC Securities project team did not pay necessary attention to the growth of sales revenue and changes in the structure of major customers, did not take adequate verification procedures for the sales revenue of Huayu Mining in 2017, and did not conduct a detailed analysis of changes in the structure of major customers and perform further verification procedures. |
| Approval content | Give supervision warning to CITIC Securities, Xu Xin and Song Yongxin. |
| Handled by | Shanghai Stock Exchange |
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| Warning notice date: April 12, 2023 |
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| title | Letter on Supervision of CITIC Securities Co., Ltd |
| Relevant regulations | Shenzhen Stock Exchange GEM Stock Issuance and Listing Review Rules |
| Document batch number | SZH [2013] No. 226 |
| Reason for approval | 1、 The implementation of the issuer's overseas inventory verification procedures was not in place, and the actual verification was different from the disclosure 2、 Failing to pay sufficient attention to the abnormal situation of the issuer's overseas sales transactions and conduct prudent verification 3、 Inadequate attention was paid to the weaknesses in the issuer's internal control related to sales, procurement and research and development 4、 Inadequate verification of the issuer's re lending, abnormal capital transactions with suppliers and other matters, and inaccurate verification opinions issued |
| Approval content | Decide to take the self regulatory measures of written warning to your company. |
| Handled by | Shenzhen Stock Exchange |
|
| Warning notice date: April 6, 2023 |
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| title | Decision on Issuing Warning Letter to CITIC Securities Co., Ltd., Xu Xin and Song Yongxin |
| Relevant regulations | Measures for the Administration of Securities Issuance and Listing Recommendation Business |
| Document batch number | Tibet Securities Regulatory Bureau [2013] No. 9 |
| Reason for approval | Through investigation, CITIC Securities Co., Ltd. (hereinafter referred to as CITIC Securities), as the sponsor of Tibet Huayu Mining Co., Ltd. (hereinafter referred to as Huayu Mining)'s initial public offering and listing projects, had the following problems in its continuous supervision from 2017 to June 2018: 1、 The on-site inspection of related parties and related transactions was not in place, the due professional prudence was not maintained and prudent verification was carried out, and the issuer was not supervised to effectively prevent related parties from illegally occupying the issuer's funds. 2、 Inadequate verification of abnormal changes in sales revenue and major customers, and inadequate verification procedures were not adopted. |
| Approval content | In accordance with the provisions of Article 66 of the Measures for the Administration of Securities Issuance and Listing Recommendation Business (CSRC Order No. 58) and Article 62 of the Measures for the Administration of Securities Issuance and Listing Recommendation Business (CSRC Order No. 137), our bureau has decided to take administrative supervision and management measures to issue warning letters to CITIC Securities, Xu Xin and Song Yongxin. |
| Handled by | Tibet Securities Regulatory Bureau |
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| Warning notice date: January 13, 2023 |
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| title | Decision on Giving Supervision Warning to Recommendation Representatives Xiao Shaochun and Lu Ming |
| Relevant regulations | Review Rules of Shanghai Stock Exchange for the Issuance and Listing of Science and Technology Innovation Board Shares |
| Document batch number | Decision of Shanghai Stock Exchange on Regulatory Measures [2013] No. 2 |
| Reason for approval | It is found that Xiao Shaochun and Lu Ming, as the sponsor representatives of Shenzhen Huada Intelligent Manufacturing Technology Co., Ltd. (hereinafter referred to as the issuer) designated by CITIC Securities Co., Ltd., who applied for the initial public offering of shares and listed on the Science and Technology Innovation Board, failed to perform the following sponsor duties. On July 26, 2022, the issuer obtained the approval for registration issued by the CSRC. On August 5, the Issuer held a board meeting to review and approve the Proposal on Joint Bidding for Land and Cooperative Construction with Related Parties. It is proposed to use its own funds to contribute to form a consortium with related parties to jointly participate in the bidding for land plots, aboveground structures and project cooperative development and construction, with a total investment of 3.441 billion yuan. The total investment of the issuer does not exceed 1.4 billion yuan, accounting for about 37.40%. The above transactions constitute connected transactions, and the amount of related transactions involved does not exceed 1.05 billion yuan. On August 31, the Issuer held an extraordinary general meeting to review and approve relevant proposals. On September 9, the issuer's shares were listed for trading. During this period, the sponsor never reported the above related party transactions to Shanghai Stock Exchange (hereinafter referred to as the Exchange), nor disclosed them in the issuer's prospectus, prospectus and other application documents for listing. On September 23, 2022, the Issuer disclosed the Announcement on the Joint Acquisition of Land Transaction Confirmation by the Company and Related Parties, and then mentioned the relevant information. |
| Approval content | Supervise and warn the recommendation representatives Xiao Shaochun and Lu Ming |
| Handled by | Shanghai Stock Exchange |
|
| Announcement date of punishment decision: January 5, 2023 |
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| title | China Securities Regulatory Commission Shenzhen Regulatory Bureau Administrative Punishment Decision [2022] No. 14 |
| Relevant regulations | Securities Law of the People's Republic of China |
| Document batch number | Shenzhen Securities Regulatory Bureau [2012] No. 14 |
| Reason for approval | 1、 Luo Hui worked in Guosen Securities Co., Ltd. and CITIC Securities Co., Ltd. from July 2012 to July 2019. 2、 Luo Hui holds and buys and sells stocks using the securities accounts of "Luo Mouhua" and "Jiang Mouwen" 3. Luo Hui's transactions and profits and losses using the securities accounts of "Luo Mouhua" and "Jiang Mouwen" |
| Approval content | Luo Hui was fined 60000 yuan. |
| Handled by | Shenzhen Securities Regulatory Bureau |
|
| Warning notice date: November 28, 2022 |
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| title | Decision on Issuing a Warning Letter to Li Jingyue |
| Relevant regulations | Interim Provisions on the Administration of Securities Brokers |
| Document batch number | |
| Reason for approval | After investigation, we found that you provided risk assessment answers to customers during your employment in Zhejiang Branch of CITIC Securities Co., Ltd., reflecting your weak compliance awareness. |
| Approval content | In accordance with the provisions of Articles 24 and 26 of the Interim Provisions on the Administration of Securities Brokers, our bureau has decided to take the supervisory and administrative measures of issuing a warning letter to you and record it in the integrity file database of the securities and futures market. |
| Handled by | Zhejiang Securities Regulatory Bureau |
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| Announcement date of rectification notice: October 24, 2022 |
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| title | Decision of Shenzhen Securities Regulatory Bureau on Ordering CITIC Securities Co., Ltd. to Take Corrective Measures |
| Relevant regulations | Regulations on Supervision and Administration of Securities Companies |
| Document batch number | Decision on Administrative Supervision Measures [2022] No. 150 |
| Reason for approval | CITIC Securities Co., Ltd.: Upon investigation, your company has the following situations in the process of standardizing the organizational structure: First, 7 subsidiaries to be rectified, including Qingdao Goldstone Horui Investment Co., Ltd., and several products and investment projects managed by them failed to pass the case application review; Second, the Jinshi Zexin Investment Management Co., Ltd. and Shenzhen Reliance Investment Co., Ltd. established for the management of properties under construction or special investment have not been cleared up; Third, the private placement subsidiary Goldstone Investment Co., Ltd. invested its own funds to invest in products that exceeded the standard and the problem of direct investment projects was not solved; Fourth, CITIC Industrial Investment Fund Management Co., Ltd., which directly holds 35% of shares, was not included in the standardized rectification plan of the subsidiary. The above situation reflects your company's weak compliance awareness and imperfect internal control mechanism. |
| Approval content | Our bureau has decided to take administrative supervision measures to order your company to correct. |
| Handled by | Shenzhen Securities Regulatory Bureau |
|
| Warning notice date: September 30, 2022 |
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| title | Decision on Issuing a Warning Letter to Pang Xiao |
| Relevant regulations | Interim Provisions on the Administration of Securities Brokers, Measures for the Compliance Administration of Securities Companies and Securities Investment Fund Management Companies |
| Document batch number | Dalian Securities Regulatory Bureau [2022] No. 021 |
| Reason for approval | Pang Xiao: After investigation, we found that you operated the customer's securities account in violation of the regulations during your tenure in the Dalian Zhongshan Road Securities Business Department of CITIC Securities Co., Ltd. |
| Approval content | Our bureau has decided to take administrative supervision measures to issue a warning letter to you. |
| Handled by | Dalian Securities Regulatory Bureau |
|
| Warning notice date: September 30, 2022 |
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| title | Decision on Issuing a Warning Letter to Jiang Jun |
| Relevant regulations | Interim Provisions on the Administration of Securities Brokers, Measures for the Compliance Administration of Securities Companies and Securities Investment Fund Management Companies |
| Document batch number | Administrative Supervision Measures [2022] No. 020 |
| Reason for approval | Jiang Jun: Upon investigation, our bureau found that you operated the client's securities account in violation of regulations during your tenure in CITIC Securities Dalian Branch. |
| Approval content | Our bureau has decided to take administrative supervision measures to issue a warning letter to you. |
| Handled by | Dalian Securities Regulatory Bureau |
|
| Warning notice date: September 30, 2022 |
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| title | Decision on Issuing Warning Letter to Jia Ming |
| Relevant regulations | Interim Provisions on the Administration of Securities Brokers, Measures for the Compliance Administration of Securities Companies and Securities Investment Fund Management Companies |
| Document batch number | Dalian Securities Regulatory Bureau [2022] No. 22 |
| Reason for approval | Upon investigation, our bureau found that you operated the client's securities account in violation of regulations during your tenure in CITIC Securities Dalian Branch. |
| Approval content | Our bureau has decided to take administrative supervision measures to issue a warning letter to you. |
| Handled by | Dalian Securities Regulatory Bureau |
|
| Warning notice date: September 30, 2022 |
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| title | Decision on Issuing Warning Letter to Sun Dongshan |
| Relevant regulations | Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies, Interim Provisions on the Management of Securities Brokers |
| Document batch number | Dalian Securities Regulatory Bureau [2022] No. 018 |
| Reason for approval | Upon investigation, our bureau found that you operated the client's securities account in violation of regulations during your tenure in CITIC Securities Dalian Branch. |
| Approval content | According to Paragraph 1 of Article 32 of the Compliance Management Measures, our bureau has decided to take administrative supervision measures to issue a warning letter to you. |
| Handled by | Dalian Securities Regulatory Bureau |
|
| Warning notice date: September 30, 2022 |
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| title | Decision on Issuing a Warning Letter to Hu Xiaohan |
| Relevant regulations | Interim Provisions on the Administration of Securities Brokers, Measures for the Compliance Administration of Securities Companies and Securities Investment Fund Management Companies |
| Document batch number | Dalian Securities Regulatory Bureau [2022] No. 19 |
| Reason for approval | Upon investigation, our bureau found that you operated the client's securities account in violation of regulations during your tenure in CITIC Securities Dalian Branch. |
| Approval content | Our bureau has decided to take administrative supervision measures to issue a warning letter to you. |
| Handled by | Dalian Securities Regulatory Bureau |
|
| Warning notice date: July 1, 2022 |
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| title | Decision on Administrative Supervision Measures for Issuing Warning Letter to Wang Xin |
| Relevant regulations | Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies |
| Document batch number | Jiangsu Securities Regulatory Bureau [2022] No. 75 |
| Reason for approval | Wang Xin: Upon investigation, we found that during your tenure in the Nanjing Shuanglong Avenue Business Department of CITIC Securities Co., Ltd., you had estimated the performance of fund investment to clients in the process of fund sales, which was not in line with the provisions of Article 10 of the Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies (Order No. 166 of the CSRC). |
| Approval content | Our bureau has decided to take administrative supervision measures to issue a warning letter to you and record it in the integrity file of the securities and futures market. |
| Handled by | Jiangsu Securities Regulatory Bureau |
|
| Announcement date of rectification notice: June 10, 2022 |
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| title | Decision on Ordering CITIC Securities Co., Ltd. to Take Corrective Measures |
| Relevant regulations | Administrative Measures for Securities Companies and Securities Investment Fund Management Companies to Establish, Acquire and Share in Overseas Business Institutions |
| Document batch number | Administrative Supervision Measures [2022] No. 29 |
| Reason for approval | CITIC Securities Co., Ltd.: After investigation, I will find that your company has the following behaviors: First, CITIC Securities Overseas Investment Co., Ltd. was established in 2015, and it was not reported to our Commission for approval in accordance with Article 129 of the Securities Law at that time. Second, the adjustment of equity structure of overseas subsidiaries was not completed on schedule, and there were problems such as holding platforms under holding platforms, specialized subsidiaries under specialized subsidiaries, subsidiaries under special purpose vehicles (SPVs), and up to eight levels of equity structure. Third, there is the problem that overseas subsidiaries are engaged in non-financial related businesses such as real estate fund management and return subsidiaries are engaged in consulting, research and other businesses. |
| Approval content | We hereby order your company to make corrections and submit a rectification report to Shenzhen Securities Regulatory Bureau within 3 months from the date of receiving this decision. |
| Handled by | China Securities Regulatory Commission |
|
| Warning notice date: April 21, 2022 |
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| title | Decision on Administrative Supervision Measures for Issuing Warning Letter to Wang Junrubidium |
| Relevant regulations | Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies |
| Document batch number | Jiangsu Securities Regulatory Bureau [2022] No. 35 |
| Reason for approval | Wang Junrubidium: Upon investigation, we found that during your tenure in the Nanjing Pukou Avenue Securities Business Department of CITIC Securities Co., Ltd., you provided convenience for customers to borrow others' accounts to purchase products, failed to strictly regulate your own practice behavior, and failed to have a necessary understanding of customers' risk tolerance, financial knowledge, investment experience, investment objectives and whether they are qualified investors. |
| Approval content | Our bureau has decided to take administrative supervision measures to issue a warning letter to you and record it in the integrity file of the securities and futures market. |
| Handled by | Jiangsu Securities Regulatory Bureau |
|
| Announcement date of rectification notice: April 21, 2022 |
|---|
| title | Decision of Jiangsu Securities Regulatory Bureau on Ordering CITIC Securities Jiangsu Branch to Take Corrective Measures |
| Relevant regulations | Regulations on the Supervision and Administration of Securities Companies, Regulations on the Administration of Securities Companies Selling Financial Products on a Commission Basis, and Measures for the Administration of the Appropriateness of Securities and Futures Investors |
| Document batch number | Jiangsu Securities Regulatory Bureau [2022] No. 34 |
| Reason for approval | CITIC Securities Jiangsu Branch: Recently, our bureau found the following problems in the daily supervision process of CITIC Securities Nanjing Hongwu North Road Business Department and CITIC Securities Nanjing Pukou Avenue Business Department (hereinafter referred to as Hongwu North Road Business Department and Pukou Avenue Business Department respectively): First, the business department of Hongwu North Road failed to take effective measures to prevent its employees from privately accepting clients' entrustment to conduct stock trading, and also failed to report relevant information to our bureau in time, which violated the provisions of Article 11 of the Interim Provisions on the Administration of Securities Brokers (CSRC Announcement [2009] No. 2). Second, in the process of selling financial products to customers, Pukou Avenue Business Department failed to perform its duties diligently, prudently, fully understand investors, and also failed to understand customers' identity, property and income status, financial knowledge and investment experience, investment objectives, risk appetite and other basic conditions, so as to assess the appropriateness of their purchase of financial products. It does not comply with the provisions of Article 12 of the Administrative Provisions on Securities Companies Selling Financial Products on a Commission Basis (CSRC Announcement [2020] No. 20 Revision) and Article 3 of the Administrative Measures on the Appropriateness of Securities and Futures Investors (CSRC Order No. 177). |
| Approval content | Our bureau has decided to take administrative supervision and management measures to order your branch company to correct. |
| Handled by | Jiangsu Securities Regulatory Bureau |
|
| Warning notice date: April 21, 2022 |
|---|
| title | Decision on Administrative Supervision Measures of Issuing a Warning Letter to Li Meng |
| Relevant regulations | Trial Regulations on Compliance Management of Securities Companies, Compliance Management Measures of Securities Companies and Securities Investment Fund Management Companies |
| Document batch number | Jiangsu Securities Regulatory Bureau [2022] No. 36 |
| Reason for approval | Upon investigation, our bureau found that you failed to strictly regulate your own practice behavior during your tenure in the Nanjing Hongwu North Road Business Department of CITIC Securities Co., Ltd., and that you privately accepted the entrustment of others to buy and sell stocks. The above situation is not in conformity with Item 3 of Article 6 of the Tentative Provisions on Compliance Management of Securities Companies (CSRC Announcement [2008] No. 30) and Item 2 of Article 10 of the Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies (CSRC Decree No. 166). |
| Approval content | In accordance with Paragraph 1 of Article 32 of the Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies, our bureau has decided to take administrative supervision measures to issue a warning letter to you and record it in the integrity file of the securities and futures market. |
| Handled by | Jiangsu Securities Regulatory Bureau |
|
| Announcement date of rectification notice: March 2, 2022 |
|---|
| title | Decision on Ordering Jiangxi Branch of CITIC Securities Co., Ltd. to Increase the Number of Internal Compliance Inspections |
| Relevant regulations | Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies |
| Document batch number | Jiangxi Securities Regulatory Bureau [2022] No. 3 |
| Reason for approval | CITIC Securities Co., Ltd. Jiangxi Branch: After investigation, our bureau found that your company has the following problems: First, the responsible person approved the OA system process during the mandatory departure period, and the actual performance personnel were inconsistent with the situation reported to the regulatory authorities, in violation of the first paragraph of Article 14 of the Regulations on the Supervision of Branches of Securities Companies (CSRC Announcement [2020] No. 66) The provisions of the second paragraph. Second, some office computers failed to timely enter into the CRM staff's trading address monitoring and maintenance system as required, and could not provide the OA system with the record of authorization to perform duties on behalf of others, which violated the provisions of Paragraph 1 of Article 7 of the Guidelines on Internal Control of Securities Companies (ZJGJZ [2003] No. 260). Third, the increase of business sites was not reported to the regulatory authorities in a timely manner, which violated the provisions of Article 9 of the Regulations on the Supervision of Branches of Securities Companies. Fourth, there is the situation of sending product promotion short messages to investors whose risk level is higher than their risk tolerance, which violates the provisions of Item (3) of Article 22 of the Measures for the Administration of the Suitability of Securities and Futures Investors (CSRC Order [2020] No. 177). Fifth, the financed funds and bonds contract, stock option brokerage contract, and investor account opening text were not subject to collection and registration control, serial number control, cancellation control, and the custodian and user were not separated, which violated the provisions of Article 13 (1) and Article 23 of the Guidelines on Internal Control of Securities Companies. Sixth, some counter businesses have problems such as the lack of filling in important information of customer account opening materials, the lack of the Power of Attorney of the Legal Representative, etc., which violates the provisions of Item 1 and Item 2 of Article 3 of the Provisions on Strengthening the Management of Securities Brokerage Business (CSRC Announcement [2010] No. 11). |
| Approval content | Our bureau has decided to order your company to carry out an internal compliance inspection every six months within one year from the date of issuance of this decision, and submit a compliance inspection report to our bureau within 10 working days after each inspection. |
| Handled by | Jiangxi Securities Regulatory Bureau |
|
| Warning notice date: March 2, 2022 |
|---|
| title | Decision on Issuing a Warning Letter to Zhang Xinqing |
| Relevant regulations | Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies |
| Document batch number | Jiangxi Securities Regulatory Bureau [2022] No. 4 |
| Reason for approval | Zhang Xinqing: Upon investigation, CITIC Securities Co., Ltd. Jiangxi Branch (hereinafter referred to as "Jiangxi Branch") has the following problems: First, the responsible person approved the OA system process during the mandatory departure, and the actual performance personnel were inconsistent with the situation reported to the regulatory department, in violation of the Regulations on the Supervision of Branches of Securities Companies (CSRC Announcement [2020] No. 66) The provisions of the first and second paragraphs of Article 14. Second, some office computers failed to timely enter into the CRM staff's trading address monitoring and maintenance system as required, and could not provide the OA system with the record of authorization to perform duties on behalf of others, which violated the provisions of Paragraph 1 of Article 7 of the Guidelines on Internal Control of Securities Companies (ZJGJZ [2003] No. 260). Third, the increase of business sites was not reported to the regulatory authorities in a timely manner, which violated the provisions of Article 9 of the Regulations on the Supervision of Branches of Securities Companies. Fourth, there is the situation of sending product promotion short messages to investors whose risk level is higher than their risk tolerance, which violates the provisions of Item (3) of Article 22 of the Measures for the Administration of the Suitability of Securities and Futures Investors (CSRC Order [2020] No. 177). Fifth, the financed funds and bonds contract, stock option brokerage contract, and investor account opening text were not subject to collection and registration control, serial number control, cancellation control, and the custodian and user were not separated, which violated the provisions of Article 13 (1) and Article 23 of the Guidelines on Internal Control of Securities Companies. Sixth, some counter businesses have problems such as the lack of filling in important information of customer account opening materials, the lack of the Power of Attorney of the Legal Representative, etc., which violates the provisions of Item 1 and Item 2 of Article 3 of the Provisions on Strengthening the Management of Securities Brokerage Business (CSRC Announcement [2010] No. 11). |
| Approval content | Our bureau decided to take administrative supervision measures to issue a warning letter to Zhang Xinqing. |
| Handled by | Jiangxi Securities Regulatory Bureau |
|
| Warning notice date: December 31, 2021 |
|---|
| title | Decision on Issuing Warning Letter to CITIC Securities Co., Ltd. Heilongjiang Branch (Supervisory Measures [2021] No. 032) |
| Relevant regulations | Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies, Provisions on Strengthening the Management of Securities Brokerage Business, Measures for the Supervision and Management of Publicly Offered Securities Investment Fund Sales Agencies, Interim Provisions on the Management of Publicly Offered Securities Investment Fund Promotional Materials, Interim Provisions on the Management of Securities Brokers |
| Document batch number | Heilongjiang Securities Regulatory Bureau [2021] No. 032 |
| Reason for approval | After investigation, your branch company has the following problems: First, the system regulations of the company's headquarters are not fully implemented, and the self produced promotional materials are not submitted to the headquarters for review; Second, the internal audit of publicity materials produced by the branch company itself was a mere formality, which was only conducted orally, without any audit traces; Third, the promotional materials distributed to investors by individual employees of the branch company were improperly expressed and did not indicate investment risks. |
| Approval content | Our bureau has decided to take administrative supervision measures to issue a warning letter to your branch. |
| Handled by | Heilongjiang Securities Regulatory Bureau |
|
| Warning notice date: June 17, 2021 |
|---|
| title | Decision on Issuing a Warning Letter to Qiu Yafei |
| Relevant regulations | Interim Provisions on the Administration of Securities Brokers, Provisions on the Administration of Securities Companies Selling Financial Products on a Commission Basis |
| Document batch number | |
| Reason for approval | Qiu Yafei: After investigation, we found that you recommended the sale of financial products not issued or sold on a commission basis by CITIC Securities Co., Ltd. when you were an employee of the Securities Business Department of South Zhongxing Road, Shaoxing, CITIC Securities Co., Ltd. |
| Approval content | Our bureau has decided to take administrative supervision measures to issue a warning letter to you and record it in the integrity file database of the securities and futures market. |
| Handled by | Zhejiang Securities Regulatory Bureau |
|
| Announcement date of punishment decision: May 13, 2021 |
|---|
| title | China Securities Regulatory Commission Qingdao Regulatory Bureau Administrative Punishment Decision [2021] No. 1 |
| Relevant regulations | Securities Law, Regulations on Supervision and Administration of Securities Companies |
| Document batch number | Qingdao Securities Regulatory Bureau [2021] No. 1 |
| Reason for approval | It is found that Yang Xiaojun has the following illegal facts: 1、 Employment of Yang Xiaojun 2、 Yang Xiaojun illegally buys and sells stocks by borrowing the "Liu Moufang" securities account 3、 Yang Xiaojun handles securities subscription and trading for clients |
| Approval content | For Yang Xiaojun's illegal trading of stocks, 1361.92 yuan of illegal income was confiscated and a fine of 40000 yuan was imposed; Yang Xiaojun was given a warning for illegally handling securities subscription and trading for clients, and his illegal income of 63 yuan was confiscated and a fine of 5000 yuan was imposed. The total amount of fines and confiscations is 46424.92 yuan. |
| Handled by | Qingdao Securities Regulatory Bureau |
|
| Announcement date of rectification notice: February 10, 2021 |
|---|
| title | Decision of Shenzhen Securities Regulatory Bureau on Ordering CITIC Securities Co., Ltd. to Take Corrective Measures |
| Relevant regulations | Measures for the Administration of Securities Investment Fund Custody Business, Measures for the Administration of Securities Investment Fund Custody Business, Interim Measures for the Supervision and Administration of Private Investment Funds, and Measures for the Administration of Securities Issuance and Listing Recommendation Business |
| Document batch number | Shenzhen Securities Regulatory Bureau [2021] No. 5 |
| Reason for approval | Upon investigation, your company has the following situations: First, the internal control of private fund custody business is not perfect enough, and individual projects are not cautious in performing their duties. First, the business access control was not in place, some project business access did not strictly implement the standards and approval procedures specified by the company, and did not fully pay attention to and verify the manager's access materials. Second, there are weak links in the investment supervision business process. Some products have not adjusted the supervision content set in the system in a timely manner, some investment supervision reviews have not performed the review procedures as required by the company, and the internal control process to supervise and restrict the performance of the investment supervision post is not perfect. Third, the review of information disclosure was insufficient, and the review of quarterly reports of individual products was delayed. Fourth, the business isolation was not in place, and the custody department and the subsidiary engaged in fund service outsourcing business did not strictly implement the business isolation requirements. 2、 The practice quality of individual IPO recommendation projects is not high, there are problems such as insufficient attention and disclosure of the issuer's cash transactions, insufficient verification of the issuer's income recognition basis, subsidy recoverability, etc. 3、 The company's individual asset management products failed to provide customers with statements according to the second paragraph of Article 29 of the Detailed Rules for the Implementation of Securities Companies' Targeted Asset Management Business (CSRC Announcement [2012] No. 30), according to the time and method agreed in the contract, describing the allocation of assets entrusted by customers, changes in net values, transaction records, etc. during the reporting period. |
| Approval content | Decide to take supervision and management measures to order your company to correct. |
| Handled by | Shenzhen Securities Regulatory Bureau |
|
| Announcement date of rectification notice: December 31, 2020 |
|---|
| title | Decision on Ordering CITIC Securities Co., Ltd. to Take Corrective Measures |
| Relevant regulations | Guidelines on Internal Control of Investment Banking Business of Securities Companies, Opinions on Strengthening the Prevention and Control of Incorruptible Employment Risks of Securities Companies Engaging Third Parties in Investment Banking Business, Regulations on Incorruptible Employment of Securities and Futures Operating Institutions and Their Staff, and Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies |
| Document batch number | |
| Reason for approval | First, the internal control of investment banking business is not perfect. In projects such as the public issuance of 2018 corporate bonds by Guangzhou R&F Real Estate Co., Ltd. (hereinafter referred to as R&F Real Estate corporate bonds), the core procedures were not strictly followed. In projects such as Jiaxing Star Semiconductor Co., Ltd.'s initial public offering and listing (IPO), R&F real estate corporate bonds, and the special plan for asset support of accounts receivable of Southern Cement, the working papers were not strictly accepted. In the IPO project of Anhui Ma'anshan Rural Commercial Bank Co., Ltd., all project personnel were not examined for conflicts of interest. In addition, there are also problems such as the imperfect assessment and evaluation mechanism for the performance of the core committee members, and some project working papers are not filed in time. Second, the risk prevention and control mechanism for honest employment is not perfect. In the IPO and other projects of Hangzhou Danghong Technology Co., Ltd., the employment of third-party institutions was not fully disclosed. |
| Approval content | I will decide to take administrative supervision and management measures to order your company to correct. |
| Handled by | China Securities Regulatory Commission |
|
| Regulatory attention announcement date: July 6, 2020 |
|---|
| title | CITIC Securities' Announcement on Receiving the Letter and Reply on Supervision from Shanghai Stock Exchange |
| Relevant regulations | |
| Document batch number | SZGH [2020] No. 0810 |
| Reason for approval | On July 3, 2020, CITIC Securities Co., Ltd. (hereinafter referred to as "the Company") received the Supervision Work Letter on Media Reporting Matters of CITIC Securities Co., Ltd. (SZGH [2020] No. 0810) from Shanghai Stock Exchange (hereinafter referred to as "SSE"). |
| Approval content | The contents of the Working Letter and the relevant replies are hereby announced as follows. |
| Handled by | Shanghai Stock Exchange |
|
| Warning notice date: May 15, 2020 |
|---|
| title | Self disciplinary punishment information of dealers association CITIC Securities |
| Relevant regulations | |
| Document batch number | |
| Reason for approval | As the lead underwriter of debt financing instruments, CITIC Securities Co., Ltd., in the bidding process of selecting the lead underwriter of some debt financing instruments, the bid winning underwriting rate is far lower than the normal market level, and the estimated underwriting fee income is far lower than the average cost of its business development. |
| Approval content | According to the relevant self-discipline regulations, CITIC Securities was warned and ordered to make comprehensive and in-depth rectification against the problems exposed in this event after deliberation at the 5th self-discipline disciplinary meeting in 2020. |
| Handled by | China Association of Interbank Market Dealers |
|
| Announcement date of rectification notice: April 16, 2020 |
|---|
| title | Decision on Administrative Supervision Measures of Beijing Regulatory Bureau of China Securities Regulatory Commission (CITIC Securities Co., Ltd. Beijing Zizhuyuan Road Securities Business Department) |
| Relevant regulations | Regulations on the Supervision and Administration of Securities Companies, Provisions of the CSRC on Strengthening the Management of Securities Brokerage Business, and Measures for the Compliance Management of Securities Companies and Securities Investment Fund Management Companies |
| Document batch number | Beijing Securities Regulatory Bureau [2020] No. 54 |
| Reason for approval | Upon investigation, your business department has the following violations: 1. There are many problems, such as missing important information in the account opening information of multiple customers, failure to verify the abnormality in the filling of the occupational information of elderly customers, inconsistency in the content of two information registration materials filled in by the same customer on the same day, and deviation in the rating results caused by the evaluation scoring and summing error, which violate Article 3 (1) of the Provisions of the CSRC on Strengthening the Management of Securities Brokerage Business Item, Item (2) and Item (1) and Item (2) of Article 6 of the Measures for Compliance Management of Securities Companies and Securities Investment Fund Management Companies. 2. Failing to report the position of Sun Lili, the head of the business department, to our bureau as required, violated the provisions of Article 34 of the Measures for the Supervision of the Qualifications of Directors, Supervisors and Senior Managers of Securities Companies. 3. It is unable to provide the registration record change and historical registration data of the computer equipment and corresponding media access control address (MAC address) in the business place, which violates the provisions of Item 1 of Article 7 of the Guidelines on Internal Control of Securities Companies. |
| Approval content | Our bureau has decided to order your business department to make corrections within a time limit. Your business department should rectify the existing problems, improve the internal control mechanism, do a good job in account opening review, personnel appointment and removal filing, customer suitability management, effectively strengthen the monitoring of abnormal transactions, and prevent marketing personnel from engaging in violations of laws and regulations or exceeding the agency authority and damaging the legitimate interests of customers in the course of practice. Your business department shall submit a written rectification report to our bureau before June 30, 2020. |
| Handled by | Beijing Securities Regulatory Bureau |
|
| Warning notice date: April 1, 2020 |
|---|
| title | Decision on Issuing Warning Letter to Yang Huimei |
| Relevant regulations | Interim Provisions on the Administration of Securities Brokers, Provisions on the Administration of Securities Companies Selling Financial Products on a Commission Basis |
| Document batch number | Hu Zheng Jian Jue [2020] No. 58 |
| Reason for approval | After investigation, we found that you, as an employee of CITIC Securities Co., Ltd. Shanghai Branch, recommended financial products not issued or sold by CITIC Securities Co., Ltd. to customers, and participated in the sales process of some products. |
| Approval content | Our bureau has decided to take administrative supervision measures to issue a warning letter to you and record it in the integrity file of the securities and futures market. |
| Handled by | Shanghai Securities Regulatory Bureau |
|
| Announcement date of rectification notice: November 14, 2019 |
|---|
| title | Decision on Ordering the Securities Business Department of Guangzhou Fanyu Wanda Plaza of CITIC Securities Co., Ltd. to Take Corrective Measures |
| Relevant regulations | Regulations on the Supervision of Branches of Securities Companies, Regulations on the Supervision and Administration of Securities Companies |
| Document batch number | Decision on Administrative Supervision Measures [2019] No. 103 |
| Reason for approval | Through investigation, Wang Suihong acted as the responsible person of your business department during the period from July 29, 2019 to October 24, 2019. Your business department failed to report to our bureau in time as required, which violated Article 17 of the Regulations on the Supervision of Branches of Securities Companies and Article 27 of the Regulations on the Supervision and Administration of Securities Companies. |
| Approval content | Decide to take administrative supervision measures to order your business department to make corrections. |
| Handled by | Guangdong Securities Regulatory Bureau |
|
| Warning notice date: April 2, 2019 |
|---|
| title | Decision on Supervision Measures for Issuing Warning Letter to Securities Business Department of Shanghai World Financial Center of CITIC Securities Co., Ltd |
| Relevant regulations | Regulations on the Administration of Securities Companies Selling Financial Products on a Commission Basis |
| Document batch number | Hu Zheng Jian Jue [2019] No. 29 |
| Reason for approval | Upon investigation, we found that some employees of your business department sold financial products not independently issued or sold on a commission basis by CITIC Securities Co., Ltd. without authorization from October 2015 to March 2017. The above behavior violates the provisions of Paragraph 2 of Article 6 of the Administrative Provisions on Securities Companies Selling Financial Products on a Commission Basis (CSRC Announcement [2012] No. 34). |
| Approval content | In accordance with the provisions of Article 20 of the Administrative Provisions on Securities Companies Selling Financial Products on a Commission Basis, our bureau has decided to take the supervisory and administrative measures of issuing a warning letter to your business department. Your business department should improve the internal control mechanism, practically strengthen compliance management, strengthen the warning education for employees, and hold relevant responsible persons accountable. |
| Handled by | Shanghai Securities Regulatory Bureau |
|
| Warning notice date: April 2, 2019 |
|---|
| title | Decision on Issuing a Warning Letter to Sun Tao |
| Relevant regulations | Regulations on the Administration of Securities Companies Selling Financial Products on a Commission Basis, Trial Regulations on the Compliance Management of Securities Companies |
| Document batch number | Hu Zheng Jian Jue [2019] No. 27 |
| Reason for approval | Upon investigation, we found that some employees of the Shanghai Global Financial Center Securities Business Department of CITIC Securities Co., Ltd. (hereinafter referred to as the "Business Department") had violated the regulations by selling financial products that were not independently issued or sold by CITIC Securities from October 2015 to March 2017. As the person in charge of the business department at that time, you were directly responsible for and responsible for the above violations of the business department, and violated Paragraph 2 of Article 6 of the Administrative Provisions on Securities Companies Selling Financial Products on a Commission Basis (CSRC Announcement [2012] No. 34) and Paragraph 2 of Article 6 of the Tentative Provisions on Compliance Management of Securities Companies (CSRC Announcement [2008] No. 30). |
| Approval content | In accordance with the provisions of Article 20 of the Administrative Provisions on Securities Companies Selling Financial Products on a Commission Basis and Paragraph 1 of Article 26 of the Tentative Provisions on Compliance Management of Securities Companies, our bureau has decided to take the supervisory and administrative measures of issuing a warning letter to you. |
| Handled by | Shanghai Securities Regulatory Bureau |
|
| Date of inquiry announcement: January 16, 2019 |
|---|
| title | CITIC Securities Announcement on Receiving the Inquiry Letter from Shanghai Stock Exchange |
| Relevant regulations | |
| Document batch number | SZGH [2019] No. 0085 |
| Reason for approval | The Company received the announcement of CITIC Securities on receiving the inquiry letter from Shanghai Stock Exchange. |
| Approval content | Your company is requested to respond to the above questions in writing before January 22, 2019, and make corresponding amendments and disclosure to the plan for issuing shares to purchase assets and related party transactions. |
| Handled by | Shanghai Stock Exchange |
|
| Announcement date of admonition conversation: November 19, 2018 |
|---|
| title | Decision of Shenzhen Securities Regulatory Bureau on Taking Regulatory Conversation Measures against Yang Bing, Zhang Xiaoliang and Luo Hao |
| Relevant regulations | Detailed Rules for the Implementation of Collective Asset Management Business of Securities Companies |
| Document batch number | Decision on Administrative Supervision Measures [2017] No. 8 |
| Reason for approval | Yang Bing, Zhang Xiaoliang, Luo Hao: After verification, CITIC Securities Co., Ltd. CITIC Securities Active Strategy No. 1 Collective Asset Management Plan, CITIC Securities Stock Bond Win win Collective Asset Management Plan, CITIC Wealth Management No. 2 Collective Asset Management Plan, CITIC Securities VIP Fengyuan No. 5 Collective Asset Management Plan, CITIC Securities Active Strategy No. 15 Collective Asset Management Plan CITIC Securities' active strategy No. 16 collective asset management plan and CITIC Securities' VIP customized No. 71 collective asset management plan have the situation that the amount of declaration for offline subscription of new shares exceeds the total cash of the collective plan, which violates the provisions of Article 34 of the Detailed Rules for the Implementation of Collective Asset Management Business of Securities Companies. |
| Approval content | Yang Bing, as the administrative principal of asset management business, Zhang Xiaoliang, as the investment principal of asset management business and wealth management business, and Luo Hao, as the portfolio plan new stock variety manager, are directly responsible for the management of the above violations. In accordance with the provisions of Article 65 of the Detailed Rules for the Implementation of Collective Asset Management Business of Securities Companies, Our bureau has decided to take administrative supervision measures to supervise and talk with you three. |
| Handled by | Shenzhen Securities Regulatory Bureau |
|
| Date of investigation announcement: November 6, 2018 |
|---|
| title | Notice of CITIC Securities on Receiving the Notice of Closure from the CSRC |
| Relevant regulations | |
| Document batch number | JHZ [2018] No. 18 |
| Reason for approval | On May 24, 2017, the company announced that it had received the advance notice of administrative punishment from the CSRC (Kuai Chi Zi [2017] No. 57), which mentioned that the content of the above investigation was related to the company's margin trading business or was suspected of violating relevant regulations. |
| Approval content | On November 5, 2018, in respect of the above investigation, the company received a notice of closure from the China Securities Regulatory Commission (JSZ [2018] No. 18), which mentioned that, after hearing, the China Securities Regulatory Commission believed that the company's illegal facts involved in the case were not established, and decided to close the case. |
| Handled by | China Securities Regulatory Commission |
|
| Announcement date of punishment decision: July 13, 2018 |
|---|
| title | China Securities Regulatory Commission Guangdong Regulatory Bureau Administrative Punishment Decision [2018] No. 12 (Yao Yiyu) |
| Relevant regulations | Securities Law of the People's Republic of China |
| Document batch number | Guangdong Securities Regulatory Bureau [2018] No. 12 |
| Reason for approval | It is found that Yao Yiyu has the following illegal facts: Yao Yiyu worked in CITIC Securities Co., Ltd. as a securities practitioner from February 23, 2012 to November 30, 2017 (the survey date). During the period from March 4, 2014 to June 30, 2016, Yao Yiyu made decisions and operated the "Tong Mouying" securities account to buy and sell stocks, with a profit of 185086.96 yuan. Yao Yiyu can actively cooperate with the investigation. The above facts are proved by such evidences as labor contracts, practicing qualification certificates, payroll and social security payment records, relevant account transaction data, bank account capital flow, party inquiry records and information descriptions. Yao Yiyu's above behavior violates the provisions of Article 43 of the Securities Law, and constitutes the behavior mentioned in Article 199 of the Securities Law that "the people who are prohibited by laws and administrative regulations from participating in stock trading directly or under an alias or in the name of others to hold, buy or sell stocks". |
| Approval content | According to the facts, nature, circumstances and social harm degree of the illegal act of the party concerned, and in accordance with the provisions of Article 199 of the Securities Law, our bureau decides: Yao Yiyu's illegal income of 185086.96 yuan was confiscated and a fine of 185086.96 yuan was imposed. The total amount of the above-mentioned fines and confiscations was 370173.92 yuan. |
| Handled by | Guangdong Securities Regulatory Bureau |
|
| Announcement date of admonition conversation: May 22, 2018 |
|---|
| title | The CSRC issued the Administrative Supervision Measures Decision [2018] No.69 and [2018] No.70 to the Company and relevant recommendation representatives |
| Relevant regulations | |
| Document batch number | CSRC [2018] No. 69, [2018] No. 70 |
| Reason for approval | On May 22, 2018, the CSRC issued the Administrative Supervision Measures Decision [2018] No. 69 "Decision on Taking Regulatory Conversation Measures against CITIC Securities Co., Ltd.", [2018] No. 70 "Decision on Taking Regulatory Conversation Measures against Huang Chao and Zeng Chun" and [2018] No No. 71 Decision on the Regulatory Measures for Issuing a Warning Letter to Ye Jianzhong and Dong Wencai identified that our company, as the sponsor for the initial public offering and listing of Ningxia Baofeng Energy Group Co., Ltd., was not diligent and responsible, lacked necessary professional prudence, and there was a problem of lax control over the reported projects; Huang Chao and Zeng Chun, when serving as the sponsor representatives of Ningxia Baofeng Energy Group Co., Ltd. in its initial public offering and listing, failed to be diligent and conscientious, lacked necessary professional prudence, and had lax control over the declared projects; |
| Approval content | After receiving the above regulatory letter, our company attaches great importance to it, urges each project team to diligently and responsibly promote the project, prudently judge and make decisions, improve the practice quality and risk awareness, and avoid the recurrence of such events. |
| Handled by | China Securities Regulatory Commission |
|
| Warning notice date: May 22, 2018 |
|---|
| title | The CSRC issued the Decision on Administrative Supervision Measures [2018] No. 71 to the Company and relevant recommendation representatives |
| Relevant regulations | |
| Document batch number | CSRC [2018] No. 71 |
| Reason for approval | On May 22, 2018, the CSRC issued the Decision on Administrative Supervision Measures 2018] No. 71 "Decision on Regulatory Measures for Issuing Warning Letter to Ye Jianzhong and Dong Wencai" to the company and relevant sponsor representatives. Ye Jianzhong and Dong Wen issued professional documents that did not conform to the truth in the process of serving as the sponsor representatives for the IPO and listing of Qingdao Port International Co., Ltd Accurate and complete requirements; |
| Approval content | After receiving the above regulatory letter, our company attaches great importance to it, urges each project team to diligently and responsibly promote the project, prudently judge and make decisions, improve the practice quality and risk awareness, and avoid the recurrence of such events. |
| Handled by | China Securities Regulatory Commission |
|
| Warning notice date: March 5, 2018 |
|---|
| title | Decision on Issuing a Warning Letter to Chen Hong |
| Relevant regulations | Interim Provisions on the Administration of Securities Brokers |
| Document batch number | |
| Reason for approval | Chen Hong: It is found that during your employment in Hangzhou Fengqi Road Securities Business Department of CITIC Securities Co., Ltd., you operated the securities account of investor Ying Zhiqiang on April 20, 2015 to buy 345000 shares of Rongxin Leasing (securities code: 831379). The above facts are proved by your own inquiry record, relevant transaction flow and other evidence. The above behavior violates the relevant provisions of Article 13 of the Interim Provisions on the Administration of Securities Brokers (CSRC Announcement [2009] No. 2). |
| Approval content | In accordance with the provisions of Articles 25 and 27 of the Interim Provisions on the Administration of Securities Brokers, our bureau has decided to take the supervisory and administrative measures of issuing a warning letter to you. |
| Handled by | Zhejiang Securities Regulatory Bureau |
|
| Announcement date of rectification notice: October 19, 2017 |
|---|
| title | Decision on Taking Self disciplinary Disciplinary Measures against Guangzhou Securities Co., Ltd |
| Relevant regulations | |
| Document batch number | [2017] No. 41 |
| Reason for approval | Guangzhou Securities, as the lead underwriter in the "14 Jiliang Bonds" project, disclosed the shares of the actual controller of the issuer inconsistent with the facts, and in the process of due diligence, it did not disclose enough about the issuer's external guarantees, lacked the Risk Awareness Letter signed by Essence Securities and Dongxing Securities, and failed to fully verify the differences between the issuer's and the guarantor's financial conditions and the actual situation; Guangzhou Securities, as the trustee of the bonds in the "14 Jiliang Bonds" project, failed to continuously pay attention to the credit status of the issuer and the guarantor, and did not convene a meeting of bondholders in the event of events that might affect the significant rights and interests of bondholders. It did not issue an interim report and follow up on the redemption until July 2015, when the redemption was postponed. |
| Approval content | Take self-discipline management measures to order Guangzhou Securities to rectify and record them into the integrity information management system of the Association. |
| Handled by | China Securities Association |
|
| Warning notice date: October 10, 2017 |
|---|
| title | Decision on Issuing Warning Letter to Guangzhou Securities Co., Ltd |
| Relevant regulations | |
| Document batch number | Guangdong Securities Regulatory Bureau [2017] No. 59 |
| Reason for approval | Guangzhou Securities is the independent financial consultant of Qinghai Jinrui Mining Development Co., Ltd. for the project of issuing shares to purchase assets and raising supporting funds, and the verification of the credit status of the counterparty and the financial status of the assets purchased by the issuer is insufficient; Guangzhou Securities, as the underwriter and trustee of Jilin Grain Group Collection, Storage and Distribution Co., Ltd. for non-public issuance of private placement bonds of SMEs in 2014, mainly relied on the information provided by the issuer for equity structure and other matters in due diligence, and the verification measures were single. In the process of entrusted management, it did not urge the issuer to timely and completely disclose relevant information such as external guarantees. |
| Approval content | Administrative supervision measures of issuing warning letters were taken for Guangzhou Securities. |
| Handled by | Guangdong Securities Regulatory Bureau |
|
| Announcement date of rectification notice: September 21, 2017 |
|---|
| title | Decision of China Securities Regulatory Commission Beijing Regulatory Bureau on Administrative Supervision Measures (CITIC Securities Beijing Anwai Street Business Department) |
| Relevant regulations | Guidelines on Internal Control of Securities Companies, Provisions on Strengthening the Management of Securities Brokerage Business, and Regulations on the Supervision and Administration of Securities Companies |
| Document batch number | Decision on Administrative Supervision Measures of Beijing Securities Regulatory Bureau [2017] No.118 |
| Reason for approval | CITIC Securities Co., Ltd. Beijing Anwai Street Securities Business Department: After investigation, your business department has the following problems: First, it opens accounts for institutional customers by mailing materials in violation of regulations; Second, the customer's account information was missing the seal and the date was altered; The third is to use illegal means to overprint the seal on the customer account opening application form. The above behavior violates the relevant provisions of Article 29 of the Guidelines on Internal Control of Securities Companies and Article 3 of the Regulations on Strengthening the Management of Securities Brokerage Business, reflecting that your business department has imperfect internal control. |
| Approval content | In accordance with the provisions of Article 70 of the Regulations on the Supervision and Administration of Securities Companies, our bureau has decided to take administrative supervision measures to order your business department to make corrections, requiring your business department to improve its internal control mechanism, standardize the opening of customer accounts, tighten the account opening process, and strengthen the management of customer files. Your business department should rectify the existing problems, hold relevant personnel accountable, and submit a written rectification report to our bureau before October 31, 2017. |
| Handled by | Beijing Securities Regulatory Bureau |
|
| Warning notice date: August 9, 2017 |
|---|
| title | Decision on Taking Self disciplinary Disciplinary Measures against Guangzhou Securities Co., Ltd |
| Relevant regulations | |
| Document batch number | [2017] No. 29 |
| Reason for approval | As the trustee of Zhongshan City Construction Group Co., Ltd., Harbin Haominju Construction Investment Development Co., Ltd. and Tianjin Jizhou New Town Construction Investment Co., Ltd., Guangzhou Securities failed to timely supervise the receipt, storage, transfer and principal and interest payment of the raised funds, and failed to timely issue a temporary trustee management report on the use of the raised funds, Failing to fully perform the duties of the trustee. |
| Approval content | Take warning and self-discipline management measures for Guangzhou Securities. |
| Handled by | China Securities Association |
|
| Announcement date of punishment decision: May 25, 2017 |
|---|
| title | Notice of CITIC Securities on Receiving the Prior Notice of Administrative Punishment from the CSRC |
| Relevant regulations | Measures for the Administration of Financed Funds and Bonds Business of Securities Companies, Regulations on the Supervision and Administration of Securities Companies |
| Document batch number | Penalty Zi [2017] No. 57 |
| Reason for approval | On February 23, 2011, Sidu (Shanghai) Trading Co., Ltd. (hereinafter referred to as "Sidu") opened an ordinary securities account in CITIC Securities and has not been engaged in securities trading. According to the Rules for the Implementation of Credit Investigation and Credit Extension for Customers of Financed Funds and Securities Business of CITIC Securities Co., Ltd. (issued in March 2010 and continued to be used until March 25, 2013, hereinafter referred to as the "Implementation Rules"), "opening an account in the company for half a year (during the pilot period, opening an account for 18 months)" is one of the conditions for opening a credit account, CITIC Securities opened a credit securities account for the company on March 12, 2012, providing margin trading services for the company when the company was engaged in securities trading for less than half a year. On March 19, 2012, CITIC Securities signed the Margin Trading Contract with the company, which enabled the company to carry out margin trading. The Implementation Rules were led by Song Cheng, then the head of CITIC Securities Credit Trading Management Department, and signed and approved by Da Xinya, the deputy general manager in charge. As of October 22, 2015, CITIC Securities had collected 52886294.80 yuan of securities lending income from the company, 47263484.17 yuan of securities lending cost, and 5622810.63 yuan of net securities lending income; As of October 10, 2015, CITIC Securities had collected transaction commission of 89428768.96 yuan from the company, net of exchange fees of 33395729.81 yuan, and net commission income of 56033039.15 yuan; The total income is 61655849.78 yuan. The above behavior violates the provisions of Article 11 of the Measures for the Administration of Securities Companies' Financed Funds and Bonds Business (CSRC Announcement [2011] No. 31) that "securities companies are not allowed to provide relevant information as required, and the time of engaging in securities trading in the company and other securities companies that have a controlling relationship with the company is continuously calculated for less than half a year", It constitutes the act described in Item (7) of Article 84 of the Regulations on the Supervision and Administration of Securities Companies that "fails to sign business contracts with customers in accordance with regulations". Da Xinya is the person in charge directly responsible for the above behaviors, and Song Cheng is the other person directly responsible. |
| Approval content | In accordance with Item (7) of Article 84 of the Regulations on the Supervision and Administration of Securities Companies, the CSRC intends to decide: 1、 Order CITIC Securities to correct, give a warning, confiscate the illegal income of 61655849.78 yuan, and impose a fine of 308279248.90 yuan; 2、 Da Xinya and Song Cheng were warned and fined 100000 yuan respectively. |
| Handled by | China Securities Regulatory Commission |
|
| Announcement date of rectification notice: 2017-02-17 |
|---|
| title | Decision of Shenzhen Securities Regulatory Bureau on Taking Measures to Order CITIC Securities Co., Ltd. to Increase the Number of Internal Compliance Inspections |
| Relevant regulations | Regulations on Strengthening the Administration of Securities Brokerage Business, Regulations on the Supervision and Administration of Securities Companies |
| Document batch number | Shenzhen Securities Regulatory Bureau [2017] No. 2 |
| Reason for approval | Without the approval of the company, the Beijing Lucky Street Business Department of the company released the "2016 Double 11 Event Promotion Materials" on the company's official website and the WeChat official account of "Securities Broker China" without authorization. The part of the promotion materials expressed one-sided emphasis on earnings, which violated the provisions of Article 1 and Article 2 of the Regulations on Strengthening the Management of Securities Brokerage Business (CSRC Announcement [2010] No. 11). |
| Approval content | The above situation reflects that your company has defects in the compliance management of its branches. In accordance with Article 70 of the Regulations on the Supervision and Administration of Securities Companies and Article 8 of the Regulations on Strengthening the Management of Brokerage Business, your company is ordered to make immediate corrections and take supervision and management measures to order your company to increase the number of internal compliance inspections. Your company should submit a specific plan to increase the number of internal compliance inspections to our bureau before February 28, 2017. |
| Handled by | Shenzhen Securities Regulatory Bureau |
|
| Announcement date of rectification notice: January 17, 2017 |
|---|
| title | Decision on Ordering Taizhou Fuzhong Road Securities Business Department to Take Corrective Measures |
| Relevant regulations | |
| Document batch number | Decision on Administrative Supervision Measures of Zhejiang Securities Regulatory Bureau [2017] No. 6 |
| Reason for approval | Our company's Taizhou Fuzhong Road Securities Business Department has problems such as imperfect internal control, chaotic operation and management. |
| Approval content | Zhejiang Securities Regulatory Bureau issued the Decision on Ordering Taizhou Fuzhong Road Securities Business Department to Take Corrective Measures (Decision on Administrative Supervision Measures of Zhejiang Regulatory Bureau of China Securities Regulatory Commission [2017] No. 6), requiring the business department to make rectification on matters such as internal control. |
| Handled by | Zhejiang Securities Regulatory Bureau |
|
| Announcement date of punishment decision: January 4, 2017 |
|---|
| title | China Securities Regulatory Commission Beijing Regulatory Bureau Administrative Punishment Decision (Qule) |
| Relevant regulations | Securities Law of the People's Republic of China |
| Document batch number | Beijing Supervision Bureau Administrative Punishment Decision [2016] No. 6 |
| Reason for approval | After investigation, Qule has the following illegal facts: Since July 2005, Qu Le has worked in CITIC Securities Co., Ltd. and obtained the practicing certificate of China's securities industry on May 4, 2009. He has successively served as the computer maintenance post manager of the computer department of Beijing Zhangzizhong Road Securities Business Department (now the International Trade Securities Business Department) and the senior manager of the investor relations post of the board office. During his tenure in CITIC Securities Co., Ltd., Qu Le, as an employee of a securities company, used the "Qu" securities account to buy and sell stocks. The "Qu" securities account was opened on January 19, 2006 at the Securities Business Department of CITIC Securities Co., Ltd., Beijing Zhangzizhong Road. The contact number reserved in the account opening information of "Qumou" securities account is the mobile phone 138 ××××× 1840 used by Qule himself. Qule and Qumou are brothers, and the fund of "Qumou" securities account is partly from Qule. From December 28, 2012 to July 11, 2013, Qule used 138 ×××× 1840 mobile phones to buy "Hongdu Airlines" and "Yunnan Copper" in the "Qumou" securities account, with a total transaction amount of 112891 yuan. During the period from January 20, 2014 to October 17, 2014, Qule used 186 ×××× 2915 mobile phones to buy and sell 9 stocks such as "Property Zhongda" in the "Qumou" securities account, with a total transaction amount of 2343526.83 yuan. During the above period, Qule gained 67086.39 yuan by trading stocks in the "Qumou" securities account. The above illegal facts are proved by the labor contract, the relevant personnel's inquiry records, the account opening materials involved in the case, the transaction flow, the fund flow, the mobile phone electronic evidence collection records, the description of the situation and other evidence. Qu Le's above behavior violates the provisions of Paragraph 1 of Article 43 of the Securities Law, and constitutes the behavior mentioned in Article 199 of the Securities Law that "persons who are prohibited by laws and administrative regulations from participating in stock trading directly or under an assumed name or in the name of others hold, buy or sell shares". |
| Approval content | According to the facts, nature, circumstances and degree of social harm of the illegal act of the party concerned, and in accordance with Article 199 of the Securities Law, our bureau has decided to confiscate the illegal income of Qule of 67086.39 yuan and impose a fine of 180000 yuan. |
| Handled by | Beijing Securities Regulatory Bureau |
|
| Announcement date of punishment decision: December 8, 2016 |
|---|
| title | China Securities Regulatory Commission Beijing Regulatory Bureau Administrative Punishment Decision (Hong Zhuoqi) |
| Relevant regulations | Securities Law of the People's Republic of China |
| Document batch number | Beijing Supervision Bureau Administrative Punishment Decision [2016] No. 4 |
| Reason for approval | In accordance with the relevant provisions of the Securities Law of the People's Republic of China (hereinafter referred to as the Securities Law), our bureau has filed an investigation and heard the case of Hong Zhuoqi's illegal trading of shares, and has informed the party concerned of the facts, reasons, basis for the administrative penalty and the rights enjoyed by the party concerned according to law. The parties and their agents put forward statements and defense opinions. At the request of the person concerned, our bureau held a hearing and listened to his statement and defense. The case has now been investigated and heard. After investigation, Hong Zhuoqi has the following illegal facts: Hong Zhuoqi is a practitioner of securities companies. From July 15, 2013 to November 10, 2014, Hong Zhuoqi worked in CITIC Securities Co., Ltd., successively serving as senior financial adviser of Beijing International Trade Securities Business Department, senior financial adviser and senior financial adviser of Beijing Wangjing Securities Business Department. During his tenure in CITIC Securities Co., Ltd., Hong Zhuoqi controlled the use of six securities accounts (hereinafter referred to as "Sun Moujie" and other account groups), namely, "Sun Moujie", "Zhu Mou", "Zhang Mouping", "Guo Mou", "Guo Moumeng" and "Yang Mou", to buy and sell stocks. The accumulated trading amount was 639858149.45 yuan, and the profit was 7211535.63 yuan. The above facts are proved by such evidence as the account opening, transaction, capital flow records, bank records, explanation of the situation, and the inquiry records of the parties and other relevant personnel of the relevant accounts, which is sufficient to identify. Hong Zhuoqi's above behaviors violate the Securities Law Article 43 Paragraph 1: "Employees of stock exchanges, securities companies, securities registration and clearing institutions, staff members of securities regulatory bodies, and other personnel prohibited by laws and administrative regulations from participating in stock trading shall not, during their term of office or within the statutory time limit, hold, buy or sell stocks directly or under an assumed name or in the name of others, nor accept stocks presented by others." And constitutes an illegal act as described in Article 199 of the Securities Law. |
| Approval content | According to the facts, nature, circumstances and degree of social harm of the illegal act of the party concerned, and in accordance with the provisions of Article 199 of the Securities Law, our bureau decided to confiscate Hong Zhuoqi's illegal income of 7211535.63 yuan and impose a fine of 30000 yuan. |
| Handled by | Beijing Securities Regulatory Bureau |
|
| Announcement date of rectification notice: August 23, 2016 |
|---|
| title | Decision on Issuing Self discipline Supervision Measures to CITIC Securities Co., Ltd |
| Relevant regulations | Business Rules of the National Equities Exchange and Quotations System for Small and Medium sized Enterprises (for Trial Implementation), Management Rules of the National Equities Exchange and Quotations System for Small and Medium sized Enterprises (for Trial Implementation), Self regulatory Measures and Disciplinary Measures of the National Equities Exchange and Quotations System for Small and Medium sized Enterprises (for Trial Implementation) |
| Document batch number | GZSF [2016] No. 235 |
| Reason for approval | It was found that before the end of May 2016, your company did not judge the appropriateness according to the market value of the securities assets under the name of the investor at the end of the trading day before the signing date of the principal-agent agreement in the process of investor appropriateness management, but mistakenly based on the real-time asset market value at the time when the investor refused to handle the opening procedures of business authority, Opening the QFII authority of the National Equities Exchange and Quotations System for 506 unqualified investor accounts violates the provisions of Article 5 of the Detailed Rules for the Administration of the Appropriateness of Investors in the National Equities Exchange and Quotations System for Small and Medium sized Enterprises (for Trial Implementation) on the time point for calculating the market value of securities assets of natural person investors. At the same time, in the Feedback Report of CITIC Securities Co., Ltd. on Self inspection of the Implementation of the Investor Suitability System submitted by your company on April 25, 2016, there was a situation that you failed to truthfully report the illegal account opening, and the proportion of failing to report the illegal account opening was 58.94%, which violated the Rules for the Administration of Investor Suitability of the National Small and Medium sized Enterprise Share Transfer System (for Trial Implementation) Article 19 Provisions on truthfully providing information such as investor account opening materials. However, considering that your company actively cooperates with the inspection work, actively finds out problems and timely rectifies them, according to Article 8 of the Measures for the Implementation of Self regulatory Measures and Disciplinary Sanctions of the National Small and Medium sized Enterprise Share Transfer System (Trial), we will take a lighter punishment. |
| Approval content | In view of the facts and circumstances of the above violations, it is decided, in accordance with Article 6.1 of the Business Rules of the National Equities Exchange and Quotations System (for Trial Implementation) and Article 20 of the Management Rules of the National Equities Exchange and Quotations System (for Trial Implementation), that: Take self-discipline supervision measures to order your company to correct. |
| Handled by | National stock to company |
|
| Warning notice date: March 16, 2016 |
|---|
| title | Decision on Issuing a Warning Letter to the Securities Business Department of Quanzhou Baozhou Road of CITIC Securities Co., Ltd |
| Relevant regulations | Measures for the Administration of Financed Funds and Bonds Business of Securities Companies |
| Document batch number | Fujian Regulatory Bureau [2016] No. 3 |
| Reason for approval | It is found that your business department has the problem of employees providing convenience for customer financing in violation of regulations. The above behavior violates Article 3 of the Measures for the Administration of Securities Companies' Margin Trading (CSRC Announcement [2011] No. 31, hereinafter referred to as the Administrative Measures). According to the first paragraph of Article 45 of the Administrative Measures, our bureau has decided to take the supervision and management measures of issuing a warning letter to your business department. |
| Approval content | Your business department should further strengthen internal control, strictly prevent and control risks, and earnestly safeguard the legitimate rights and interests of customers. |
| Handled by | Fujian Securities Regulatory Bureau |
|
| Date of investigation announcement: February 5, 2016 |
|---|
| title | CITIC Securities Announcement |
| Relevant regulations | |
| Document batch number | |
| Reason for approval | On August 25, 2015, several senior managers and employees of the company were asked by the public security organ to assist in investigating relevant issues. In addition, the company is suspected of violating the relevant provisions of the Regulations on the Supervision and Administration of Securities Companies. |
| Approval content | Recently, CITIC Securities Co., Ltd. (hereinafter referred to as "the Company") learned that Mr. Xu Gang, Mr. Ge Xiaobo, Mr. Liu Wei, Mr. Chen Jun, Mr. Yan Jianlin, Ms. Qi Shuguang, and Mr. Chen Rongjie, who helped or accepted the investigation by the relevant authorities in the early stage of the Company, have returned to their work units or residences in succession. |
| Handled by | police |
|
| Date of investigation announcement: December 7, 2015 |
|---|
| title | CITIC Securities Announcement |
| Relevant regulations | |
| Document batch number | |
| Reason for approval | On August 25, 2015, several senior managers and employees of the company were asked by the public security organ to assist in investigating relevant issues. In addition, the company is suspected of violating the relevant provisions of the Regulations on the Supervision and Administration of Securities Companies. |
| Approval content | On the evening of December 4, 2015, the media mentioned that Mr. Chen Jun and Mr. Yan Jianlin, members of the Executive Committee of CITIC Securities Co., Ltd. (hereinafter referred to as the "Company"), or involved in the investigation, and the Company is unable to contact the above personnel for the time being. In addition, some of the employees who cooperated with the investigation in the early stage of the company have returned to their jobs. |
| Handled by | police |
|
| Date of investigation announcement: November 30, 2015 |
|---|
| title | CITIC Securities Announcement |
| Relevant regulations | Regulations on Supervision and Administration of Securities Companies |
| Document batch number | Inspection Corps JKTZ No. 153121 |
| Reason for approval | It is verified that the scope of this investigation is that the company is suspected of violating the provisions of Article 84 of the Regulations on the Supervision and Administration of Securities Firms, "failing to sign business contracts with customers as required", in the process of carrying out margin trading. |
| Approval content | The CSRC has decided to put the company on file for investigation. |
| Handled by | China Securities Regulatory Commission |
|
| Date of investigation announcement: November 27, 2015 |
|---|
| title | CITIC Securities Announcement on Receiving the Notice of Case Filing and Investigation from China Securities Regulatory Commission |
| Relevant regulations | Regulations on Supervision and Administration of Securities Companies |
| Document batch number | Inspection Corps JKTZ No. 153121 |
| Reason for approval | The company is suspected of violating the relevant provisions of the Regulations on the Supervision and Administration of Securities Companies. |
| Approval content | The CSRC has decided to put the company on file for investigation. |
| Handled by | China Securities Regulatory Commission |
|
| Date of investigation announcement: September 16, 2015 |
|---|
| title | CITIC Securities Announcement |
| Relevant regulations | |
| Document batch number | |
| Reason for approval | Cheng Boming, the general manager of the company, Yu Xinli, the head of the Operation Management Department of the Brokerage Development and Management Committee, and Wang Jinling, the information technology center, are suspected of insider trading and leaking insider information. |
| Approval content | Cheng Boming, the general manager of the company, Yu Xinli, the head of the Operation Management Department of the Brokerage Development and Management Committee, and Wang Jinling, the information technology center, were required by the public security organ to accept the investigation according to law. |
| Handled by | police |
|
| Date of investigation announcement: August 31, 2015 |
|---|
| title | CITIC Securities Announcement |
| Relevant regulations | |
| Document batch number | |
| Reason for approval | On August 25, 2015, several senior managers and employees of the company were asked by the public security organ to assist in investigating relevant issues. |
| Approval content | The investigation is still in progress, and the company will actively cooperate. If there is any new progress in relevant matters and the announcement matters are involved, the company will timely issue an announcement in accordance with relevant regulations. |
| Handled by | police |
|
| Announcement date of admonition conversation: January 26, 2015 |
|---|
| title | CITIC Securities Co., Ltd.'s Report on Continuous Supervision and Tracking of Zhejiang Dean Diagnostic Technology Co., Ltd. in the First Half of 2015 |
| Relevant regulations | |
| Document batch number | CSRC [2015] No. 14 |
| Reason for approval | On January 26, 2015, the China Securities Regulatory Commission issued the Decision on Taking Regulatory Conversation Measures against CITIC Securities Co., Ltd. (CSRC [2015] No. 14), requiring relevant responsible persons to accept regulatory talks at the Supervision Department of Non listed Public Companies of the China Securities Regulatory Commission on issues related to our investment banking projects. |
| Approval content | Our company carried out serious rectification: organized the staff of the investment banking department to strengthen business learning, further improve the quality of project implementation, enhance the depth and comprehensiveness of the understanding of regulatory provisions, and avoid similar problems in the follow-up work. |
| Handled by | China Securities Regulatory Commission |
|
| Announcement date of rectification notice: January 19, 2015 |
|---|
| title | CITIC Securities Co., Ltd. Announcement |
| Relevant regulations | |
| Document batch number | CSRC [2015] No. 1 |
| Reason for approval | Recently, due to the problem of extending the term of the due margin trading contract (according to the relevant regulations, the maximum term of the margin trading contract is 6 months), the company was taken by the CSRC to suspend the opening of new margin trading customer credit accounts for 3 months. |
| Approval content | In this regard, the company has taken the following rectification measures: 1. Suspend the opening of new margin trading customer credit accounts for three months. 2. From January 16, 2015, the company will not allow any new contracts to be overdue. Two weeks before the expiration of the contract, the company will repeatedly remind customers of the timely engagement, and will force the closing of positions for the outstanding contracts. 3. Clear up and complete the old overdue contracts within the time limit specified by the supervision. 4. Increase the account opening conditions for customers of margin trading business from customer assets of 300000 yuan to customer assets of 500000 yuan. |
| Handled by | China Securities Regulatory Commission |
|
| Announcement date of punishment decision: January 16, 2015 |
|---|
| title | CSRC notified the on-site inspection of financing business of securities companies in the fourth quarter of 2014 |
| Relevant regulations | |
| Document batch number | |
| Reason for approval | The inspection found that some companies violated the regulations to extend the term of the due margin trading contracts, financed funds and bonds from unqualified customers, failed to timely dispose of customer collateral as required, and provided convenience for financing between customers. In addition, some securities companies still have problems such as inadequate rectification, failure to correct after handling, and even new violations. Among them, CITIC Securities, Haitong Securities and Guotai Jun'an had the problem of extending the term of the due financed funds and bonds contract in violation of regulations, which had been handled but still had not been corrected, and the number of customers involved was large. Therefore, administrative supervision measures were taken against these three companies to suspend the opening of new financed funds and bonds customer credit accounts for three months. |
| Approval content | In addition, we will transfer the violation of the self regulatory rules of the Securities Industry Association and the stock exchange found in the inspection to the self regulatory organization for verification and handling. For other non-standard problems found in the inspection, we will urge relevant securities companies to rectify and report them in the industry. We will continue to strengthen the supervision of margin trading and other financing businesses, timely restart the on-site inspection of financing businesses, further implement the regulatory transformation requirements, highlight the in-process supervision and post accountability, increase on-site inspection and punishment, and promote the standardized and healthy development of various businesses of securities companies. |
| Handled by | China Securities Regulatory Commission |
|
| Announcement date of rectification notice: April 10th, 2014 |
|---|
| title | 2014 Annual Recommendation Work Report of China Quanjude (Group) Co., Ltd. CITIC Securities Co., Ltd |
| Relevant regulations | Measures for the Administration of Financed Funds and Bonds Business of Securities Companies, Regulations on the Administration of Securities Companies' Consignment of Financial Products, and Regulations on the Supervision and Administration of Securities Companies |
| Document batch number | Shenzhen Bureau [2014] No. 9 |
| Reason for approval | On April 10, 2014, the Shenzhen Securities Regulatory Bureau issued the Decision on Ordering CITIC Securities Co., Ltd. to Take Corrective Measures (Shenzhen Bureau [2014] No. 9), requiring the company to take measures against violations of the Measures for the Administration of Securities Companies' Margin Trading, the Administrative Provisions on Securities Companies' Selling Financial Products on a Commission basis, and the Regulations on the Supervision and Administration of Securities Companies Correct and rectify relevant provisions in. |
| Approval content | In response to the above problems, the recommendation institution of the company has taken effective measures to carry out serious rectification, revised the relevant system specifications, and submitted the rectification to Shenzhen Securities Regulatory Bureau in a timely manner. |
| Handled by | Shenzhen Securities Regulatory Bureau |
|
| Announcement date of rectification notice: July 12, 2013 |
|---|
| title | Decision of Shenzhen Securities Regulatory Bureau on Taking Measures to Order CITIC Securities Co., Ltd. to Increase the Number of Internal Compliance Inspections |
| Relevant regulations | Regulations on Supervision and Administration of Securities Companies |
| Document batch number | Shenzhen Securities Regulatory Bureau [2013] No. 20 |
| Reason for approval | CITIC Securities Co., Ltd.: According to the requirements of the Work Plan for On site Inspection of Securities Companies in 2013 (Zheng Jian Ban Fa [2013] No. 13) issued by the China Securities Regulatory Commission, from April 11 to May 10, 2013, the Shenzhen Commissioner's Office of the China Securities Regulatory Commission formed a patrol on-site inspection team to conduct on-site inspection of your company's operation and management from January 1, 2012 to December 31, 2012. The inspection shows that your company has many problems in personnel management and compliance management. |
| Approval content | In accordance with the provisions of Article 70 of the Regulations on the Supervision and Administration of Securities Companies, we hereby order your company to increase the number of internal compliance inspections. Your company should submit the specific plan for increasing internal compliance inspection to our bureau before August 31, 2013. |
| Handled by | Shenzhen Securities Regulatory Bureau |
|
| Announcement date of rectification notice: July 19th, 2008 |
|---|
| title | Follow up of CITIC Securities Co., Ltd.'s corporate governance activities |
| Relevant regulations | |
| Document batch number | |
| Reason for approval | 1、 Continue to strengthen investor relations management 2、 Continue to strengthen the management of information disclosure 3、 Continue to strengthen system building 4、 Continue to play the role of special committees under the Board of Directors 5、 Standardize the purchase and sale of shares by major shareholders, directors, supervisors and senior managers |
| Approval content | According to the requirements of the Notice of the CSRC on Matters Related to Carrying out Special Activities to Strengthen the Governance of Listed Companies (Zheng Jian Gong Si Zi [2007] No. 28) and the specific deployment of Shenzhen Securities Regulatory Bureau, the company launched the special activities of corporate governance in late April 2007, and established a special group of corporate governance headed by the director, which has gone through self inspection, public review, on-site inspection At the stage of rectification and improvement, the relevant rectification work was completed on October 30, 2007 (see the Rectification Report on the Special Governance Activities of CITIC Securities Co., Ltd., which was published in China Securities Journal, Shanghai Securities News and Securities Times on the same day), and the problems found in the self inspection process of the company and the on-site inspection of Shenzhen Securities Regulatory Bureau were rectified respectively, The established tasks of this special corporate governance activity were basically completed. |
| Handled by | Shenzhen Securities Regulatory Bureau |
|
| Announcement date of rectification notice: October 30, 2007 |
|---|
| title | Report on Rectification of Special Corporate Governance Activities of CITIC Securities Co., Ltd |
| Relevant regulations | |
| Document batch number | |
| Reason for approval | 1. Special committees of the Board of Directors did not play a full role 2. Some rules and regulations are not perfect 3. The directors of the company have violated the rules in buying and selling stocks |
| Approval content | On September 26, 2007, the Shenzhen Securities Regulatory Bureau carried out an on-site inspection on the company's corporate governance, focusing on the company's various management systems, the shareholders' meeting, the board of directors, the board of supervisors and other meeting materials in recent three years, proposed the company's problems in corporate governance, and asked the company to seriously rectify. For the problems found in the on-site inspection, the company analyzed the root causes of the problems one by one, and formulated corresponding measures to avoid the recurrence of similar situations, so as to effectively improve the level of corporate governance. |
| Handled by | Shenzhen Securities Regulatory Bureau |
|
