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63 people of China Merchants Securities were fined 81.73 million: the former president had been speculating in stocks for 26 years, and the chairman was warned

63 people of China Merchants Securities were fined 81.73 million: the former president had been speculating in stocks for 26 years, and the chairman was warned

Phoenix.com Finance "Investment Observation" Text丨Xiaoxiao

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Recently, 63 people from China Merchants Securities were fined a total of 81.73 million by the CSRC for illegal stock speculation, which shook the financial circle!

First of all, the coverage of the fines is staggering.

According to the administrative punishment of 63 people disclosed by the China Securities Regulatory Commission on February 5, from the former president Xiong Jiantao to ordinary employees, including Sun Jian, then director of the investment bank headquarters, Xin Xin, deputy general manager of the wealth management department, and many legal persons and investment consultants of the business department of securities companies are speculating in stocks in violation of regulations.

63 people of China Merchants Securities were fined 81.73 million: the former president had been speculating in stocks for 26 years, and the chairman was warned

Screenshot of the official website of the China Securities Regulatory Commission

The second point is the length of the violation!

According to the "Market Ban Decision" disclosed by the China Securities Regulatory Commission on February 5, Xiong Jiantao, then executive director and president of China Merchants Securities, began to speculate in stocks in violation of regulations in 1995, and began to control other people's accounts for a long time from 2007 to 2021, and the violation lasted for 26 years.

During this period, Xiong Jiantao traded stocks with a total turnover of 519 million yuan and a profit of 33.566 million yuan. In accordance with the Securities Law, Xiong Jiantao was banned from the securities market for life.

63 people of China Merchants Securities were fined 81.73 million: the former president had been speculating in stocks for 26 years, and the chairman was warned

Screenshot of the official website of the China Securities Regulatory Commission

In the face of regulatory penalties, China Merchants Securities responded on its official website on February 9, "The violations of laws and regulations of the employees involved were concentrated before 2021, and they were held under pseudonyms, reflecting that the company's daily education was still not in place in the past, the management system was still lacking, and the supervision and accountability were not strong enough." We will deeply learn lessons from this and resolutely and thoroughly rectify it. ”

The average salary was as high as 810,000 yuan

Some netizens said, "The salary of the brokerage is so high, these people take a high salary and do illegal things, and they must be severely punished." ”

According to the Wind data combed by the "Investment Observation" of Phoenix.com Finance, in 2022, the average salary of China Merchants Securities will be 464,700 yuan, ranking 17th among the 43 A-share brokerages, in the upstream position.

And "before 2021, when illegal acts were concentrated", the company's salary advantage was even more obvious. In 2020, the average salary of China Merchants Securities was as high as 812,400 yuan, second only to CICC and Huatai Securities.

63 people of China Merchants Securities were fined 81.73 million: the former president had been speculating in stocks for 26 years, and the chairman was warned

Source: Wind

Under such a high salary, there are still large-scale illegal stock speculations, as China Merchants Securities said in its response, "the management system is lacking, and the supervision and accountability are not strong enough".

The chairman with an annual salary of 3.5 million was warned

Regarding the illegal stock speculation of 63 people of China Merchants Securities, the Shenzhen Securities Regulatory Bureau clearly determined that Chairman Huo Da was responsible for the management of this problem, and issued a warning letter to him on February 9.

63 people of China Merchants Securities were fined 81.73 million: the former president had been speculating in stocks for 26 years, and the chairman was warned

Screenshot of the official website of the Shenzhen Securities Regulatory Bureau

At the same time, Zhao Bin, as the then compliance director of China Merchants Securities, and Hu Yu, as the current compliance director, were responsible for the management of the relevant violations, and the two were taken administrative supervision measures of regulatory talks.

According to the financial report, Huo Da has served as the chairman of China Merchants Securities since May 2017, with an annual salary of 3.4986 million yuan. Zhao Bin served as the compliance director from January 2016 to December 2018, with an annual salary of 3.2144 million yuan. Hu Yu has been the compliance director and chief risk officer since December 2018, with an annual salary of 2.4011 million yuan.

The "Investment Observer" of Phoenix.com Finance noted that just four days before the China Securities Regulatory Commission disclosed the administrative penalty against 63 people, China Merchants Securities issued an announcement saying that Hu Yu, compliance director and chief risk officer, applied for resignation on January 31, 2024 because he was about to reach retirement age.

63 people of China Merchants Securities were fined 81.73 million: the former president had been speculating in stocks for 26 years, and the chairman was warned

Screenshot of the announcement

63 people of China Merchants Securities were fined 81.73 million: the former president had been speculating in stocks for 26 years, and the chairman was warned

Screenshot of the financial report

According to the annual report, Hu Yu's positions as compliance director and chief risk officer should be terminated in December 2024. Some netizens speculated that "at present, he applied for resignation in advance, which may be related to the fines of 63 people in China Merchants Securities for illegal stock speculation."

63 people of China Merchants Securities were fined 81.73 million: the former president had been speculating in stocks for 26 years, and the chairman was warned

Screenshots of the network

February 19 is the first trading day after China Merchants Securities 63 people were fined for illegal stock speculation, from the perspective of market performance, investors voted with their feet, it fell 0.93% today to close at 13.81 yuan.

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