Another listed securities firm involved in increasing the number of projects in violation of regulations was put on file. On April 16, Soochow Securities issued a notice saying that it had received a "notice of filing a case" from the China Securities Regulatory Commission. Soochow Securities was filed by the China Securities Regulatory Commission because it was suspected that Gome Communications and Zixin Pharmaceutical Company had not done their duty diligently in the recommendation business of non-public offering shares. So far, coupled with the regulatory "naming" of CITIC Securities and Haitong Securities on April 12, three brokerages have been filed for illegal projects within a week. Some people in the industry said that within a week, three listed securities firms were filed for violations of the same business, which is undoubtedly a strong regulatory signal, in addition, it also reflects the common problems that may exist in the current securities firms' recommendation business. After the release of the new "National Nine articles", we can foresee that the supervision may be stronger in the future. The securities firms should strengthen the internal compliance training of the sponsor business and improve the compliance awareness and professional accomplishment of the business personnel.

Three brokerages were filed within a week.

Soochow Securities was filed by China Securities Regulatory Commission. On April 16, Soochow Securities announced that it had received a "notice of filing a case" from the China Securities Regulatory Commission on the same day. According to relevant laws and regulations, the China Securities Regulatory Commission decided to file a case against Soochow Securities on April 8, 2024 because Soochow Securities was suspected of failing to fulfill its responsibilities in the non-public offering of shares recommended by Gome Communications and Zixin Pharmaceutical Co., Ltd.

Soochow Securities shares fell after the announcement. Trading data show that as of April 17, Soochow Securities was down 3%.Nodepositbonusfreespinsrealmoney.53% to close at 6.28 yuan per share.

In fact, in the past week, a number of securities firms involved in fixed increase projects have been filed by the China Securities Regulatory Commission. On April 12, Citic Securities announced that it had received a "notice on file" from the China Securities Regulatory Commission because Citic Securities was suspected of violating the law and regulations in the process of transferring non-public shares of titanium dioxide in 2023 in violation of restrictive regulations. it was filed by the China Securities Regulatory Commission on March 13, 2024. On the same day, CITIC Securities Capital Management Co., Ltd., the wholly-owned grandson of CITIC Securities, also received a "case filing notice" from the China Securities Regulatory Commission on suspicion of the above-mentioned violations.

At the same time on April 12, Haitong Securities also announced that on March 13, 2024, the China Securities Regulatory Commission (CSRC) decided to file a case against Haitong Securities because it was suspected of violating laws and regulations in the process of transferring non-public shares of nuclear titanium dioxide in 2023 in violation of restrictive regulations.

In the view of Jiang Han, a senior researcher at the Pangu think tank, the fact that three listed securities firms were filed for violations of the same business within a week is undoubtedly a strong signal that the China Securities Regulatory Commission is strengthening its supervision of the securities market. in particular, the compliance of securities firms in the fixed increase recommendation business is closely monitored. This reflects the determination of regulators to maintain market order and protect the rights and interests of investors. at the same time, it also warns other securities firms that they should strictly abide by the relevant laws and regulations and exercise due diligence. In addition, a number of securities firms have been "named" also reflects the current securities firms in the fixed increase recommendation business may exist in the general problems.

Follow-up supervision may be strengthened.

As stated above, recently, regulatory documents have emphasized the refinancing business and the responsibility of securities firms to sponsor. The "opinions of the State Council on strengthening Supervision and preventing risks to promote the High-quality Development of the Capital Market" issued on April 12 proposed to further improve the issuance and listing system; strictly supervise the spin-off listing; strictly check and verify refinancing; and strengthen the supervision of issuance and underwriting.

Gong Tao, chairman of Shenzhen Zhongjin Huachuang Fund, also said that recently, three listed securities firms have been filed one after another to show that regulators have taken practical actions to protect the rights and interests of investors. Filing for investigation and tracing the source of interests shows that the regulatory attitude of "zero tolerance" towards violations of the law in the securities industry has increased the cost of violations by securities firms to a certain extent, and it can be foreseen that after the new "Nine articles of the State" is issued, supervision may be stronger in the future.

Then, what is the impact on the performance and management of the relevant institutions after the case is filed by the CSRC?Nodepositbonusfreespinsrealmoney? What are the specific rectification measures for the above-mentioned securities firms? On the above issues, the Beijing Business Daily reporter issued an interview with the above-mentioned securities firms, but no reply was received as of the press release. In the relevant announcement, Soochow Securities, Haitong Securities and CITIC Securities all said that they will fully cooperate with the relevant work of the China Securities Regulatory Commission, while strictly in accordance with regulatory requirements to implement information disclosure obligations, the company's current business situation is normal.

Gong Tao interpreted that for listed securities firms that have been filed, once the problem of violation of laws and regulations is verified, listed securities firms may be fined by the China Securities Regulatory Commission in the short term, and may also be restricted or suspended from carrying out some important business. as a result, the above-mentioned securities firms reduce their profits for the current year and increase the loss of goodwill, which may lead to a fall in share prices.

As Gong Tao said, in 2023, some securities firms have been fined for increasing the number of sponsors in violation of regulations. According to the announcement in February 2023, Northeast Securities was filed by the China Securities Regulatory Commission for failing to exercise due diligence in the recommendation business of non-public offerings. In May 2023, Northeast Securities announced that it had received a "prior notice of administrative punishment" from the China Securities Regulatory Commission, because Northeast Securities was suspected of failing to perform its duties diligently during the 2016 non-public offering and continuous supervision of Henan Diamond. Northeast Securities was ordered by the China Securities Regulatory Commission to correct, gave a warning, confiscated 1.8868 million yuan in sponsor business income and imposed a fine of 5.6604 million yuan, resulting in a total confiscation of about 7.55 million yuan. Northeast Securities said in its 2023 semi-annual report that after receiving the above regulatory letter, it had carried out rectification and initiated internal accountability procedures in accordance with regulatory requirements.

Jianghan suggested that in the future, in order to avoid regulation and filing of cases due to violations, securities firms should strengthen internal compliance training of sponsors to improve the compliance awareness and professionalism of business personnel. Secondly, it is necessary to improve the internal management system and business process to ensure the compliance and standardization of the fixed increase business. Thirdly, risk management and internal control need to be strengthened to detect and correct violations in a timely manner. In addition, we should actively cooperate with the investigation and requirements of the regulatory authorities, seriously rectify the problems, and disclose relevant information openly and transparently.