Xiangcai Co., Ltd. announced on September 24 that its subsidiary Xiangcai Securities has received an Advance Notice of Administrative Penalty from the Hunan Securities Regulatory Bureau, marking new progress in the case previously filed for investigation by the China Securities Regulatory Commission. The Hunan bureau found that Xiangcai Securities had major deficiencies in brokerage business controls, significant faults in implementing real-name account requirements, and serious violations of information security regulations, allegedly breaching laws and regulations including the Regulations on the Supervision and Administration of Securities Companies, the Measures for the Administration of Securities Brokerage Business, and the Measures for the Administration of Information Security Assurance in the Securities and Futures Industry. The Hunan bureau plans to issue warnings and impose fines on Xiangcai Securities and relevant personnel, including Zhou Lefeng, then vice president in charge of brokerage business and president of the company, and Ding Jun, then chief information officer. At the same time, the Hunan bureau also issued an Advance Notice on Regulatory Measures Ordering Xiangcai Securities Co., Ltd. to Rectify, Suspending New Securities Account Openings for Three Months, and Ordering Disciplinary Action Against Relevant Personnel, proposing to order Xiangcai Securities to rectify, suspend new securities account openings for three months, and order disciplinary action against responsible personnel with results reported. During the suspension period, Xiangcai Securities may not add new brokerage business clients.
Xiangcai Co LtdSubsidiary Xiangcai Securities received a pre-penalty notice with fines, a 3-month suspension of new securities account openings, and disciplinary action for control failures.
