B[The securities sector fluctuated and rebounded, Huaxin shares hit the daily limit] On October 9th, the securities sector fluctuated and rebounded in the afternoon, Huaxin shares hit the daily limit, and Harbin Investment Co., Ltd., Soochow Securities, CICC, Oriental Fortune, Yangtze Securities, etc. quickly followed suit. B[Sponsors, spouses, relatives, etc. are not allowed to hold shares of the issuer in any name or manner] On October 9, the reporter learned that the China Securities Association has recently drafted the "Code of Conduct for Sponsor Representatives" and is soliciting opinions from the industry. The new regulations clarify that sponsors, other persons engaged in the sponsorship business, and their spouses are not allowed to hold shares of the issuer in any name or manner, including direct shareholding in their own name, shareholding through relatives, pseudonyms, agency holdings, etc., as well as disguised shareholding through trusts, entrusted investments, partnership shares, asset management plans, contractual private equity funds, etc. This also includes obtaining shares of companies to be listed for interested parties, and illegal participation in strategic allotments and price lock-in increases. The new regulations also extend the scope of the prohibition to the entire business cycle. Illegal shares are not allowed in all aspects of project establishment, due diligence, preparation of application documents, review and inquiry responses, and continuous supervision after listing. Two hidden forms are specifically named. It is not allowed to take shares in the proposed sponsor company through "pre-investment" or "locking in the target in advance" before the project is officially established. It is not allowed to obtain improper equity returns through retroactive interest arrangements after the project is terminated and the continuous supervision period is over. (Reporter Lin Jian) B[Consultation for new regulations on the professional conduct of sponsors. Sponsors are not allowed to "hunt" supervisory staff through profit transfer and other methods] On October 9, reporters learned that the China Securities Association has recently drafted the "Code of Conduct for Sponsor Representatives" and is soliciting opinions from the industry. The new regulations require that sponsor representatives shall not have any private contact with regulatory staff outside of normal work communication during the process of project application, review, registration, etc., shall not instigate, instigate, or assist others in improper ways to interfere with the review, and shall not "hunt" regulatory staff through benefits transfer, bribery, etc. (Reporter Lin Jian) B[China’s securities industry is ushering in a “re-rating wave” of international credit, with many leading securities firms “promoting A” simultaneously during the year] October 9th, China’s securities industry is ushering in a “re-rating wave” of international credit. Since the beginning of this year, the three major international rating agencies, Moody's, S&P, and Fitch, have intensively raised the credit ratings of Chinese securities firms or industry rating benchmarks at a synchronized pace rarely seen in recent years. Leading securities firms such as CITIC Securities, Cathay Haitong, and CICC have entered the "Class A" rating range, releasing a positive signal for the steady development of China's securities industry and the continued improvement of the comprehensive competitiveness of leading institutions. B[In the first half of the year, securities firms raised RMB 540 billion in science and technology innovation, with a total of nearly RMB 40 billion in follow-up investment] On October 8, reporters learned that the China Securities Association issued the latest analysis of the securities industry’s operating conditions in the first half of this year to securities firms. Among them, in terms of science and technology innovation: in the first half of the year, the entire industry provided financing for science and technology innovation enterprises through IPOs, technological innovation bonds and other financial instruments, exceeding 540 billion yuan, of which 56 companies were listed on the "Two Innovation Boards" and the Beijing Stock Exchange, achieving financing of 41.673 billion yuan; underwriting 553 technological innovation bonds (or management ABS), with an underwriting amount of 500.078 billion yuan. As strategic investors, securities companies and their alternative subsidiaries participated in the "Two Innovation Boards" and the Beijing Stock Exchange IPO follow-up investment of 860 million yuan, with a cumulative investment scale of nearly 40 billion yuan, accompanying the growth of scientific and technological enterprises with their own funds. As of the end of June, the scale of existing products of private equity subsidiaries of securities companies was 693.693 billion yuan, an increase of 7.88% from the end of the previous year, guiding the flow of social capital to fields and industries with growth potential. (Reporter Lin Jian) B[China Securities Association: In the first half of the year, brokerage business exceeded self-operated business and became the largest source of income for securities companies] On October 8, the China Securities Association issued an analysis of the operating conditions of the securities industry in the first half of this year to securities companies. According to the analysis, in the first half of the year, the industry's five major business incomes, including securities brokerage, proprietary investment, net interest income, investment banking, and asset management, accounted for 35.66%, 34.29%, 12.28%, 5.67%, and 3.68% of operating income respectively. Affected by the active market trading, the income from securities brokerage business increased significantly. The industry-wide securities brokerage business revenue reached 117.6 billion yuan, a year-on-year increase of 53.90%. (Securities Times) B[Moody's Ratings Upgrades the Ratings of Four Leading Brokers] On October 6, Moody's Ratings recently raised the long-term issuer ratings of four brokerages from Baa1 to A3. The four securities firms are: CICC, CICC International, CITIC Securities and Cathay Haitong Securities. In addition, a few days ago, the international rating agency S&P raised the rating of China's securities industry. Moody's Ratings said the rating actions on the above brokers reflected Moody's belief that these companies have an increased likelihood of receiving official support if necessary. These companies are increasingly strategically important to China in achieving national economic and financial policy goals, and play an important role in the operation and development of China's capital markets. Many leading brokerages responded to this. CITIC Securities stated that it will take this rating upgrade as an opportunity to further expand overseas financing channels, reduce cross-border capital costs, continue to enhance international credibility and brand influence, accelerate the construction of first-class investment banks and investment institutions, continue to empower the real economy, and help build a financial power. (Securities Times) B[Adjustment of rating indicators for securities companies’ cultural construction, theoretical research, chief economist’s voice, etc. are included in bonus points] On September 30, reporters learned that the China Securities Association recently solicited opinions from securities companies on the "Practice Evaluation Methods for Securities Company Culture Construction" and the revised draft of evaluation indicators. The "Measures" were revised for the first time, and the indicators were revised for the third time, and they were systematic revisions. After the revision, the indicator system was reconstructed into six categories: political guidance of party building, honest business management, compliance and sound operation, role play of think tanks, industry image shaping, and guarantee system implementation. The basic indicators were streamlined from the original 51 to 38. Two new points have been added to the bonus points: first, the effectiveness of party organization building, extra points for the party organization that has been fully developed and grassroots party members rated as excellent; second, standardized operation and management, extra points for companies that have not been subject to administrative penalties, regulatory measures and self-discipline management for three or more years in the past five years. Theoretical research, the positive voice of the chief economist, and cultural construction achievements being reported by the central media are combined into think tank and publicity bonus points.
Point deductions have been increased simultaneously, and special indicators for punishment have been added. Companies subject to supervision or self-discipline penalties for issues such as integrity and professional ethics will be deducted points. Employees who are punished for stock trading and other issues will also be deducted points. For the first time, points will be deducted for excessive salary incentives. For example, 0.2 points will be deducted for per capita salary increase and net profit increase of less than 20%, and 1 point will be deducted for 30% and above. In addition, honest work plays a decisive role in personnel assessment and promotion, and has been adjusted from the original bonus item to a key matter that must be implemented. (Reporter Lin Jian) B[China Securities Association disclosed the "Five Big Articles" practice cases of securities companies in finance, and 6 securities firms were selected] On September 29th, the Securities Association of China recently announced the excellent practice cases of securities company subsidiaries in implementing the "Five Big Articles" in finance and strengthening compliance and risk control management. Among them, there are 6 cases of implementing the "Five Big Articles" in finance, namely Orient Securities, Guosen Securities, Capital Securities, China Merchants Securities, Zheshang Securities, and CITIC Securities. Specifically, the case selected by Orient Securities is "Creating a new engine for empowering asset management, investment and research based on AI large models"; Guosen Securities is "Guosen Asset Management assisted State Power Investment Corporation to successfully issue the country's first carbon-reducing and emission-reducing green electricity alternative REITs"; Beijing Capital Securities is "anchoring the development of digital finance and building an independent operation system - an excellent practical case of digital finance for the credit innovation project of Capital Securities Asset Management Operation Management System"; China Merchants Securities is "an early firm investment" "Facilitating the rise of domestic DRAM - the case of investment in Changxin Memory"; Zheshang Securities is "A practical case of Zheshang Securities Investment Co., Ltd.'s implementation of the financial 'Five Big Articles'"; CITIC Securities is "creating green momentum through group collaboration and promoting dual carbon implementation with capital empowerment". (Reporter Chen Junlan) B[Chinese-funded securities firms have begun to clean up their mainland businesses. Guotai Junan International has restricted account deposits and purchases] Following cross-border securities firms such as Futu, Tiger, Changqiao and Huasheng Securities, some Chinese-funded securities firms in Hong Kong have also begun to clean up their existing mainland businesses. On September 28, reporters learned that in order to implement relevant regulatory requirements, Guotai Junan International has made partial adjustments to the services available for existing investor accounts in mainland China starting from the 26th of this month. According to the customer service staff of Guotai Junan International, the above-mentioned adjustments are similar to previous adjustments by brokerages such as Futu Holdings and Tiger International. That is, when existing mainland investors log in to their accounts in mainland China (the login IP is displayed as mainland China), they will not be able to deposit or buy funds, but can only withdraw funds and sell them. When the login IP of the relevant account is displayed as outside China, the account's deposit, withdrawal and transaction functions will not be affected. If a customer obtains a new identity, the corresponding new certificate information needs to be updated. At that time, the customer, as an overseas certificate holder, will not be subject to this rule. (China Business News) B[The wave of smart agents sweeps across the securities industry, and securities companies are intensively connected to the smart agent ecosystem] September 28th, 2026 is regarded by the industry as the "first year of financial smart agents." Many securities companies have taken the initiative to connect to the intelligent ecosystem of major Internet platforms, and the AI (artificial intelligence) transformation of securities companies is moving from "self-research and internal use" to "ecological openness". In just a few months, platforms such as Kimi, Tencent WorkBuddy, Alibaba Qianwen, and Huoshan Engine have successively launched financial services, and brokerages have become active adopters. At the same time, a number of listed securities firms disclosed the latest progress in AI strategies in their 2026 semi-annual reports. From wealth management to investment research, investment banking, compliance and risk control, AI is deeply embedded in the core business processes of securities firms, and an industry competition around intelligent agents has begun. (Securities Times) B[Hainan Free Trade Port cross-border asset management pilot expansion, 2 public offerings, 3 securities firms, 5 banks are listed] On September 24th, the official website of Hainan Securities Regulatory Bureau showed that Huatai Securities Haikou Guoxing Avenue Securities Business Department has completed the registration for the Hainan Free Trade Port cross-border asset management pilot business. The filing date is September 23, becoming the first securities sales agency in the pilot. As of now, the number of pilot institutions that have completed registration has increased to 10, including 4 issuers, including two securities firms, Jinyuan Securities and Wanhe Securities, and two fund companies, Huibaichuan Fund and Peng'an Fund; there are 6 sales institutions, all of which are banks except Huatai Securities, including Industrial Bank Haikou Branch, Shanghai Pudong Development Bank Haikou Branch, China Merchants Bank Haikou Branch, CITIC Bank Haikou Branch, and Minsheng Bank Haikou Branch. Judging from the pace of filing, banking institutions have entered the market one after another since the launch of the pilot. In December 2025 and April 2026, China Merchants Bank Haikou Branch and China CITIC Bank Haikou Branch completed the filing. (Reporter Lin Jian) B[An employee of Zhongtai Securities lost RMB 92 million in trading on behalf of clients and was given a warning and a fine of RMB 500,000] On September 19, the Hunan Securities Regulatory Bureau recently issued an administrative penalty decision [2026] No. 12 (Yang Wenming). It launched an investigation into Yang Wenming’s behavior of privately accepting client entrustment to buy and sell securities, and informed the parties of the facts, reasons, and basis for the administrative penalty as well as the rights of the parties in accordance with the law. The party concerned did not make any statement or defense, nor did it request a hearing. The investigation and handling of this case have now been concluded. It was found that Yang Wenming had the following illegal facts: During the period involved, Yang Wenming was an employee of Zhongtai Securities. From October 10, 2017 to November 30, 2017, from April 24, 2020 to January 14, 2021, and from November 3, 2022 to January 4, 2024, Yang Wenming accepted Tan’s entrustment and operated Zhang’s ordinary account by issuing trading instructions. The total transaction amount was 191,297,302.35 yuan, and the book loss was 1,829,166.02 yuan; from November 10, 2017 to March 6, 2024, Yang Wenming accepted Tan entrusted Zhang to operate Zhang's credit securities account by issuing trading instructions, with a cumulative transaction of 2,338,310,202.05 yuan and an actual loss of 90,233,071.69 yuan.
The aforesaid two accounts had cumulative transactions of 2,529,607,504.40 yuan, with a total book loss of 92,062,237.71 yuan. Yang Wenming did not generate any illegal income during the period of accepting the entrustment. Yang Wenming's above-mentioned behavior violated the provisions of paragraph 2 of Article 136 of the Securities Law, and constituted the behavior of employees of securities companies privately accepting entrustment from customers to buy and sell securities as described in Article 210 of the Securities Law. The Hunan Securities Regulatory Bureau decided to give Yang Wenming a warning and impose a fine of 500,000 yuan. B[The scale of private equity asset management of securities companies has increased month-on-month for 10 consecutive months] September 19th. Since the beginning of this year, the scale of private equity management of securities companies has maintained steady growth. The latest data released by the Asset Management Association of China shows that as of the end of July, the private equity asset management scale of securities firms reached 6.62 trillion yuan, a month-on-month increase of 2.27% and an increase of 14.16% from the end of last year. The scale hit a new high in the past 12 months and has maintained month-on-month growth for 10 consecutive months. From the perspective of product structure, among the four categories of products: fixed income, equity, futures and derivatives, and mixed products, fixed income products firmly occupy a dominant position. As of the end of July, the scale of fixed-income products was 5.22 trillion yuan, an increase of 11.43% from the end of last year, accounting for 78.83% of the total scale of securities firms' private equity asset management products. B[Interim dividends for listed securities companies are gradually implemented] September 19th, after the disclosure of the 2026 interim report of listed securities companies, the progress of their mid-term dividends has become one of the topics that investors pay close attention to. Wind data shows that three listed securities companies, China Merchants Securities, Hongta Securities, and First Venture Capital, have completed the mid-term equity distribution this week, distributing a total of more than 1.7 billion yuan (tax included, the same below). Another 24 securities companies have announced mid-term dividend plans and plan to distribute more than 26 billion yuan in cash. From an investment perspective, as the capital market reform continues to advance, all main businesses of securities firms are expected to fully benefit. The current sector valuation is at a relatively low level, and the relatively solid fundamental performance has provided important support for the restoration of the valuation of securities firms. The investment value of leading securities firms in the industry with strong comprehensive strength and balanced business layout, as well as leading securities firms with differentiated competitive advantages in wealth management, institutional business and other fields, has attracted much attention. (China Securities News)
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