B[Shanghai Stock Exchange: This week, it adopted self-regulatory measures on 119 cases of abnormal securities trading behaviors such as promotion and suppression, false declarations, and conducted special inspections on 31 major matters of listed companies] On November 6, the Shanghai Stock Exchange issued a regulatory announcement. From November 2 to November 6, 2026, the Shanghai Stock Exchange’s corporate regulatory department sent a total of 10 regulatory work letters; through interim and ex-post supervision, listed companies were required to disclose 4 supplementary and correction announcements. At the same time, the joint supervision of information disclosure and abnormal stock prices has been strengthened. If the company discloses sensitive information or has obvious abnormal stock prices, 59 insider trading and abnormal trading verification orders will be initiated. The Shanghai Stock Exchange adopted self-regulatory measures on 119 cases of abnormal securities trading behaviors such as promotion and suppression, false declarations, etc., conducted special inspections on 31 major matters of listed companies, and reported 1 clue to suspected violations of laws and regulations to the China Securities Regulatory Commission. B[Guosheng Securities received a warning letter for bearing overseas research expenses for public offerings] On November 6, according to regulatory disclosures, Guosheng Securities was issued a warning letter due to the fact that it had borne the expenses of tickets, research intermediaries, etc. during overseas research periods for public fund managers. After investigation, Guosheng Securities violated relevant regulations such as the "Regulations on the Administration of Securities Transaction Fees of Publicly Offered Securities Investment Funds", "Regulations on the Integrity of Securities and Futures Business Institutions and Their Staff". According to relevant regulations, the regulatory authorities decided to take administrative supervision measures by issuing warning letters and record them in the integrity files of the securities and futures markets. It is worth noting that regarding the issue of overseas research costs being borne by securities firms, the regulatory authorities have previously named five securities firms, fund companies and individuals. Supervision said that when some fund companies participate in overseas research activities organized by securities dealer research institutes, there are cases where the securities companies bear the costs of expert consultation, research tickets, etc. (Reporter Lin Jian) B[Complaints about investment advisory products of securities companies have increased significantly, surpassing financial products to rank first in product complaints] On November 6, reporters learned that the supervision department recently issued the complaint handling status of securities companies in the third quarter. Complaints about investment advisory products increased quarter by quarter in the first three quarters of this year. In the third quarter, they surpassed financial products to become the largest source of product complaints for the first time, becoming the structural focus of product complaints. Focusing on the reasons for the increase, it is mainly related to market fluctuations. Market fluctuations intensify investor income fluctuations, resulting in a significant increase in product inquiries, fee disputes and account operation requests. Judging from the content of complaints, complaints about investment advisory products mostly involve issues such as service effects not meeting expectations, doubts about the accuracy of investment advice, and investment advisory services inconsistent with publicity. The regulator said the continued rise in complaints about investment advisory products “reflects that the tendency of the investment advisory business to ‘focus on sales and ignore services’ still needs to be corrected.” Supervision recommends that all institutions strictly implement investor suitability management requirements and improve product risk disclosure and information disclosure mechanisms. (Reporter Lin Jian) B[Complaints about brokerage commission adjustments remain high, and demands for retroactive refunds become difficult to deal with] On November 6, reporters learned that the regulatory authorities recently issued the latest report on the handling of complaints by brokerage firms in the third quarter. In the first three quarters of this year, securities firms received a total of 25,919 customer complaints, including a total of 4,355 complaints related to commission adjustments and taxes. The number of complaints has cooled down quarter by quarter, but it is still the main issue of complaints. Judging from the appeals, complaints in the second quarter mainly involved commission adjustment applications that were not processed in a timely manner, tax collection standards were not transparent, and commission rate disputes; commission disputes in the third quarter were mainly related to historical reasons. The early commission rate standards for some existing customers of established business departments were relatively high, and investors were strongly resistant after comparing them with peers. There were also investors who used the current market commission level to measure early account opening rates and asked institutions to take the initiative to lower and retroactively refund the difference. Such demands exceeded the scope of compliance adjustments and were difficult to communicate and appease. In addition, the issue of credit account commission rates has become a new growth point for complaints. Individual investors have signed commission adjustment agreements but the system was not set up in time, causing disputes about "promises not being fulfilled". (Reporter Lin Jian) B[Shanghai Stock Exchange imposes disciplinary sanctions on relevant persons responsible for *ST Qingyue] On October 30, the Shanghai Stock Exchange issued a decision on disciplinary sanctions against relevant persons responsible for Suzhou Qingyue Optoelectronics Technology Co., Ltd. The securities issuance documents announced by the company contained material falsehoods, and the financial data involved in Section 8 "Financial Accounting Information and Management Analysis" of its "Prospectus" contained false records. From 2020 to the first half of 2022, the company inflated its total profits by deliberately understating inventory depreciation provisions and falsely selling chips by RMB 3,374,031.73, RMB 7,645,323.73, and RMB 23,581,569.24 respectively, accounting for 5.56%, 15.58%, and 131.74% of the total profits for each period disclosed in the Prospectus. In addition, the company failed to disclose major matters as required, and there were false records in the 2022 annual report and the 2023 semi-annual report. Gao Yudi, then chairman and general manager of Suzhou Qingyue Optoelectronic Technology Co., Ltd., Mu Xinju, then executive deputy general manager and general manager of Yiwu Qingyue Optoelectronic Technology Co., Ltd., a wholly-owned subsidiary, Zhang Xiaobo, then financial director and secretary of the board of directors, and Wu Lei, then chairman of the board of supervisors and director (managing sales department), were publicly reprimanded They publicly determined that Gao Yudi was unfit to serve as a director or senior manager of a listed company after eight years, Mu Xinju was unfit to serve as a director or senior manager of a listed company after six years, Zhang Xiaobo was unfit to serve as a director or senior manager of a listed company after five years, and Wu Lei was unfit to serve as a director or senior manager of a listed company after three years. B[The China Securities Regulatory Commission punished Qingyue Technology for its fraudulent issuance and illegal information disclosure cases The four responsible persons were fined a total of 28 million yuan] On October 30, the China Securities Regulatory Commission issued an administrative penalty decision. After investigation, it was found that Qingyue Technology had financial fraud in the IPO prospectus. From 2020 to the first half of 2022, through deliberate undercounting of inventory price reduction reserves and false sales of chips, the total profits were inflated by 3.374 million yuan, 7.6453 million yuan, and 23.5816 million yuan respectively. Among them, the inflated profits in the first half of 2022 accounted for 131.74% of the total profits for the current period disclosed in the prospectus. In addition, the company's 2022 annual report and 2023 semi-annual report also contain false records. The China Securities Regulatory Commission decided to impose fines of 9 million yuan, 9 million yuan, 6 million yuan and 4 million yuan on Gao Yudi, Mu Xinju, Zhang Xiaobo and Wu Lei respectively, for a total of 28 million yuan. B[Supervision details the cost management requirements for securities companies and fund research work: Disguised compensation, refund of excessive expenses, and excessive payment of excessive bills are prohibited] October 28th, at the beginning of October this year, the supervision centralized notified the inspection and handling of illegal overseas research activities of investment researchers of five securities companies and fund companies. The reporter learned that recent supervision has put forward detailed requirements for securities companies and fund companies to strengthen the regulations on the use of commissions. In the future, it is planned to include the use of commissions in the key points of annual on-site inspections. If there are violations, they will be dealt with strictly to highlight the supervision orientation. Based on the multi-party research, the regulatory focus is on the compliance control of the use of agency fees: in research activities, transaction commissions are not allowed to be used to transfer fees for expert consultation, research intermediaries, conferences, tickets, flights, and alcohol that should be paid by oneself; false names and other methods are not allowed to detour to provide financial support for excessive and illegal activities. At the same time, it is clarified that fund companies are not allowed to covertly compensate securities companies for relevant expenses by increasing commission distribution ratios, increasing allocation points, committing to trading volumes, etc. Supervision emphasizes that securities firms and fund companies should conscientiously implement self-examination and self-correction, refund excessive or inappropriate expenses, and strictly pursue internal accountability for related issues. At present, the research organization method of the sell-side research institute and the buyer's fee review process will be re-examined. (Reporter Lin Jian) A[New Third Board stock trading risk warning requirements will be implemented from November 2] On October 26, the reporter learned that the new requirements for the New Third Board stock trading risk warning will be implemented from November 2, 2026. According to the requirements of the National Equities Exchange and Quotations, securities companies have mainly completed four major adjustments: First, within 60 trading days after investors have opened the New OTC Market trading authority, if they entrust the purchase of stocks on the list, pop-up prompts will appear on a transaction-by-transaction basis (including intraday limit purchase orders and block transaction purchase orders); second, two risks in the buying process A risk reminder pops up for the first time when entering a code or abbreviation, and a second time when confirming a purchase; third, the list is determined based on equity concentration and transaction liquidity, and is valid for a limited time, but is not displayed to the public; fourth, securities firms must establish a flexible and controllable risk warning management mechanism to cooperate with and meet the corresponding regulatory requirements. (Reporter Lin Jian) B[National Development and Reform Commission: Establish a future industry investment growth and risk sharing mechanism to form new economic growth points as soon as possible] October 20th, Ren Zhongbao, deputy director of the Innovation and High-tech Development Department of the National Development and Reform Commission, said at a press conference on the 20th that he would support future industry breakthroughs and seize the "commanding heights." Every technological revolution and industrial change will give birth to a number of new industries that reshape the global competitive landscape and bring about a qualitative leap in productivity. At present, a new round of scientific and technological revolution and industrial transformation are developing in depth. Quantum technology, biological manufacturing, brain-computer interface, hydrogen energy and nuclear fusion energy, embodied intelligence, sixth-generation mobile communications, etc. all show bright development prospects. We must adhere to the path of deep integration of technological innovation and industrial innovation, establish future industrial investment growth and risk-sharing mechanisms, explore diversified technical routes, typical application scenarios, feasible business models, and market supervision rules, form new economic growth points as soon as possible, and firmly seize rare historical opportunities. B[The audit report issued by Hexin Law Firm for Qingdao Zhongcheng contains false records Confiscated 19.43 million by the China Securities Regulatory Commission] On October 16, the China Securities Regulatory Commission issued an administrative penalty decision and launched an investigation into the case of Hexin Accounting Firm failing to perform due diligence in providing annual report audit services for Qingdao Zhongcheng. It was found that Hexin Accounting Firm had committed the following violations Facts: Hexin Law Firm provided annual report audit services for Qingdao Zhongcheng, and the annual audit report issued from 2017 to 2022 contained false records; Hexin Law Firm did not perform its due diligence during the audit of Qingdao Zhongcheng's annual financial statements from 2017 to 2022. During the audit practice of Qingdao Zhongcheng's annual financial statements from 2017 to 2022, Hexin Institute failed to perform diligently and conscientiously in accordance with the requirements of the Chinese Certified Public Accountants Practice Standards. The audit report issued contained false records, which violated the provisions of Article 163 of the Securities Law and constituted an illegal act as described in Article 213, paragraph 3, of the Securities Law. Regarding the illegal activities of Hexin Securities Co., Ltd., the signing accountants Ma Chunming and Zuo Wei are the directly responsible persons in charge. The China Securities Regulatory Commission decided to order Hexin Accounting Firm (Special General Partnership) to make corrections, confiscate the audit business income of 4,858,490.57 yuan, and impose a fine of 14,575,471.71 yuan. Ma Chunming was given a warning and fined 600,000 yuan. Zuo Wei was given a warning and fined 400,000 yuan. B[Natural person Luo Zhenkun made a profit of 9.79 million from insider trading Confiscated 58.75 million yuan by the China Securities Regulatory Commission] On October 16, the China Securities Regulatory Commission issued an administrative penalty decision and launched an investigation into Luo Zhenkun’s insider trading behavior. It was found that Luo Zhenkun’s illegal facts were as follows: On October 10, 2024, the relevant company issued a notice on financing The suspension announcement of planned asset replacement, issuance of shares, payment of cash to purchase assets and raising supporting funds is a major event stipulated in Article 80, Paragraph 2, Item 2 and Item 9 of the Securities Law, and is considered inside information as stipulated in Article 52 of the Securities Law before it is made public. Inside information will be formed no later than March 22, 2024, and will be made public on October 11, 2024. Luo Zhenkun had frequent contacts with relevant insiders during the sensitive period of the inside information. From May 15 to October 10, 2024, Luo Zhenkun controlled and used multiple accounts to trade the stocks of related companies. After the inside information was made public, he sold all of them and calculated a profit of 9,791,501.47 yuan.
The timing of Luo Zhenkun's trading of stocks of related companies was highly consistent with the time of contact and the development process of inside information. There were situations such as buying immediately after opening a new account, buying for the first time, selling at a loss and buying other stocks, and transactions that deviated from the company's fundamentals. The trading behavior was obviously abnormal and without legitimate reasons. Luo Zhenkun's above-mentioned behavior violated the provisions of Article 50 and Article 53, paragraph 1, of the Securities Law, and constituted insider trading as described in Article 191, paragraph 1, of the Securities Law. The China Securities Regulatory Commission decided to confiscate 9,791,501.47 yuan of illegal income from Luo Zhenkun and impose a fine of 48,957,507.35 yuan. The China Securities Regulatory Commission decided to impose a three-year ban on Luo Zhenkun from the securities market. From the date when the CSRC announced the decision, during the ban period, he was not allowed to trade all securities listed or listed on securities exchanges directly or under a pseudonym or in the name of others. B[Natural persons Zhou Jifeng and Zhou Jihui profited 81.95 million from manipulating the securities market Nearly 328 million yuan was fined and confiscated by the China Securities Regulatory Commission] On October 16, the China Securities Regulatory Commission issued an administrative penalty decision and launched an investigation into Zhou Jifeng and Zhou Jihui’s manipulation of the securities market. It was found that Zhou Jifeng and Zhou Jihui had the following illegal facts: From April 20, 2021 to June 5, 2023, Zhou Jifeng and Zhou Jihui controlled the use of multiple securities accounts to manipulate related stocks. During the manipulation period, Zhou Jifeng and Zhou Jihui affected the transaction price and volume of relevant stocks by concentrating their capital advantages and shareholding advantages to continuously buy and sell, and conduct transactions between accounts actually controlled by themselves, and gained illegal income of 81,951,026.14 yuan. The China Securities Regulatory Commission decided to order Zhou Jifeng and Zhou Jihui to dispose of illegally held stocks in accordance with the law and confiscate the illegal income of 81,951,026.14 yuan from Zhou Jifeng and Zhou Jihui, of which Zhou Jifeng shall bear 65,560,820.91 yuan and Zhou Jihui shall bear 1 6,390,205.23 yuan; and a fine of 245,853,078.42 yuan was imposed, of which Zhou Jifeng borne a fine of 196,682,462.74 yuan and Zhou Jihui borne a fine of 49,170,615.68 yuan. Zhou Jifeng was banned from the securities market for five years.
From the date of announcing the decision, during the ban period, in addition to being prohibited from continuing to engage in securities business, securities service business, or serving as a director, supervisor, or senior manager of the original securities issuer in the original institution, they are also not allowed to engage in securities business, securities service business, or serve as a director, supervisor, or senior manager of another securities issuer in any other institution. Zhou Jifeng is banned from trading in the securities market for three years. From the date when the association announces its decision, during the ban period, all securities listed or quoted on the stock exchange are not allowed to be traded directly or under a pseudonym or in the name of others. B[Natural person Chen Qiuhang made a profit of 25.81 million from insider trading Nearly 182 million yuan was fined and confiscated by the China Securities Regulatory Commission] On October 16, the China Securities Regulatory Commission issued an administrative penalty decision and launched an investigation into Chen Qiuhang’s insider trading and leaking inside information. It was found that Chen Qiuhang’s illegal facts were as follows: On October 10, 2024, the relevant company issued The company issued a trading suspension announcement regarding the planning of asset swaps, issuance of shares, payment of cash to purchase assets and raising supporting funds. This matter is a major event stipulated in Article 80, Paragraph 2, Item 2 and Item 9 of the Securities Law, and is considered inside information as stipulated in Article 52 of the Securities Law before it is made public. Inside information will be formed no later than March 22, 2024, and will be made public on October 11, 2024. Chen Qiuhang is an insider of inside information, and the time of knowledge is no later than October 8, 2024. From October 9 to October 10, 2024, Chen Qiuhang controlled and used multiple securities accounts to buy stocks of related companies, and sold them all after the inside information was made public. After calculation, the profit was 25,811,493.61 yuan. From October 8 to 10, 2024, Chen Qiuhang informed others of inside information.
Chen Qiuhang's above-mentioned behavior violated the provisions of Article 50 and Article 53, paragraph 1, of the Securities Law, and constituted insider trading as described in Article 191, paragraph 1, of the Securities Law. The China Securities Regulatory Commission decided to confiscate Chen Qiuhang’s illegal gains of 25,811,493.61 yuan from insider trading, impose a fine of 154,868,961.66 yuan, and impose a fine of 1,000,000 yuan on him for leaking insider information. In summary, a total of 25,811,493.61 yuan of illegal income was confiscated from Chen Qiuhang and a fine of 155,868,961.66 yuan was imposed. Chen Qiuhang was banned from the securities market for five years. During the ban, he was not allowed to trade all securities listed or listed on securities exchanges directly or under a pseudonym or in the name of others. B[Deputy Director of the Futures Supervision Department of the China Securities Regulatory Commission Zhang Yue: Always maintain a strict tone, zero tolerance and high pressure Strictly crack down on futures illegal activities] Today, at the 2026 Shanghai Derivatives Market Forum co-organized by the Shanghai Futures Exchange and the China Financial Futures Exchange, Zhang Yue, deputy director of the Futures Supervision Department of the China Securities Regulatory Commission, delivered a speech, saying that it is necessary to improve regulatory efficiency, adhere to the bottom line of the revolution, adhere to coordinated development and safety, establish a risk-based regulatory concept, promote three-dimensional monitoring of cross-temporary spot, cross-market and internal and external risks, cross-domestic and overseas risks, comprehensive management and control, and coordinated handling to ensure the safe and stable operation of the market. We must always maintain a strict tone and zero-tolerance high-pressure posture, severely crack down on futures illegal activities, effectively protect the legitimate rights and interests of traders, and maintain good market order. (Reporter Zhou Xiaoya) B[Henan: Such institutions are strictly prohibited from investing funds in local government financing platforms] On October 13, the Henan Provincial Local Financial Administration Bureau released the "Henan Provincial Implementation Rules for the Supervision and Management of Financial Leasing Companies (Trial)". The "Details" not only raised the entry threshold for financial leasing companies, but also clarified that the registered capital for their establishment should not be less than 200 million yuan or equivalent foreign currency. In addition, 14 prohibited businesses or activities of financial leasing companies are directly designated. The most critical thing is to clearly classify roads, bridges and other structures into the "forbidden zone" of leased properties to accurately plug the loopholes of local hidden debts.
The Henan Provincial Local Financial Administration Bureau reiterated in the policy interpretation of the "Details" that financial leasing companies are not allowed to use structures as leased objects to carry out sale and leaseback business with local platform companies, and invest funds in local government financing platforms and related projects; they are not allowed to use roads, municipal pipelines, water conservancy pipelines, bridges, dams, weirs, waterways, tunnels, non-equipment projects under construction, suspected new local government hidden debts, and structures that may affect the normal supply of public services after being disposed of as leased objects. (Financial Times) B[Guangfa Bank was fined and confiscated over 17.14 million yuan Ten illegal acts involving financial statistics, credit reporting and anti-money laundering] On September 24th, the People's Bank of China recently disclosed administrative penalty information. China Guangfa Bank was found guilty of violating financial statistics, account management, liquidation, bank card acquiring, data security, anti-counterfeiting currency and other management regulations, as well as occupying financial deposits. For 10 illegal acts, including deposits or funds, violation of credit information management regulations, failure to perform customer identification obligations as required, and failure to submit large transaction reports as required, the company was warned, had illegal gains of 16,200 yuan confiscated, and was fined 17.124 million yuan, for a total fine of approximately 17.14 million yuan.
In addition, 12 relevant responsible personnel were punished at the same time, with fines ranging from 10,000 yuan to 160,000 yuan respectively, for a total fine of 560,000 yuan. Among them, Jiang from the Asset Custody Department of China Guangfa Bank was given a warning and fined 160,000 yuan for being responsible for violating bank card acquiring business management regulations.
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