On the evening of April 12, the two leading brokerages, CITIC Securities and Haitong Securities, successively issued announcements that they were investigated by the China Securities Regulatory Commission (CSRC) for suspected violations of laws and regulations in the process of transferring CNNC titanium dioxide's non-public issuance of shares in 2023 in violation of restrictive regulations.
CITIC Securities announced on April 12 that the company and its wholly-owned grandson company CITIC Securities Capital respectively received a notice from the China Securities Regulatory Commission (CSRC) that the company and CITIC CSI Capital were suspected of violating laws and regulations in the process of transferring CNNC titanium dioxide's non-public issuance of shares in 2023 in violation of restrictive regulations, and in accordance with the Securities Law of the People's Republic of China, the Administrative Punishment Law of the People's Republic of China and other laws and regulations, on March 13, 2024, the CSRC decided to file a case against the company and CITIC CSI Capital.
According to the announcement, the company and CITIC China Securities Capital will actively cooperate with the relevant work of the China Securities Regulatory Commission and fulfill information disclosure obligations in strict accordance with regulatory requirements. At present, the operation of the company and CITIC CSI Capital is normal.
According to the Shanghai Securities News, CITIC Securities responded that the company will conscientiously study and implement the new "National Nine Articles" of the capital market, adhere to the investor-oriented, operate in accordance with the law, give full play to the functions of direct financing "service providers", capital market "gatekeepers", and social wealth "managers", protect the legitimate rights and interests of investors, further improve compliance levels, professional service capabilities and core competitiveness, and better serve the high-quality development of the capital market.
On the same day, Haitong Securities announced that the company received the "Notice of Case Filing" from the China Securities Regulatory Commission on April 12. Due to the company's suspected violations of laws and regulations in the process of transferring CNNC titanium dioxide's non-public issuance of shares in 2023 in violation of restrictive regulations, in accordance with the Securities Law of the People's Republic of China, the Administrative Punishment Law of the People's Republic of China and other laws and regulations, on March 13, the China Securities Regulatory Commission decided to file a case against the company.
Haitong Securities said that it will fully cooperate with the relevant work of the China Securities Regulatory Commission, and at the same time strictly fulfill the information disclosure obligations in accordance with regulatory requirements, and the company's current business situation is normal.
In addition, just a little before Haitong Securities and CITIC Securities received the notice of filing a case from the China Securities Regulatory Commission, the relevant company involved in the company, China Nuclear Titanium Dioxide (002145), disclosed that it received a notice from Wang Zelong, the actual controller of the company, and learned that it received the "Notice of Case Filing" issued by the China Securities Regulatory Commission on April 12, 2024. In accordance with relevant laws and regulations, on March 13, 2024, the China Securities Regulatory Commission decided to file a case against Wang Zelong.
It is worth noting that the performance of brokerages in 2023 has generally suffered a decline, of which the net profit of Haitong Securities has shrunk by more than 80%.
According to the financial report data, CITIC Securities' revenue and net profit in 2023 will decline. Last year, the company achieved operating income of 60.068 billion yuan, a year-on-year decrease of 7.74%, and net profit attributable to shareholders of the parent company of 19.721 billion yuan, a year-on-year decrease of 7.49%.
In 2023, Haitong Securities achieved operating income of 22.953 billion yuan, down 11.54% year-on-year, net profit attributable to shareholders of the parent company of 1.008 billion yuan, down 84.59% year-on-year, and net profit after deducting non-recurring gains and losses of 271 million yuan, down 95.40% year-on-year.
Wind data shows that as of April 7, 19 of the 21 brokerages that have disclosed their 2023 annual reports have shown negative growth in investment banking business income in 2023, and as many as 17 have experienced a year-on-year decline of more than 10%, and only Zhongtai Securities and Guolian Securities have achieved positive year-on-year growth.
Source: Reading and Entrepreneurship