The original New Era Securities penalty landed, and the new company responded!

China Fund News reporter Fang Li and Yan Jingying

On April 26, according to the website of the China Securities Regulatory Commission, the Beijing Securities Regulatory Bureau made administrative supervision measures against the former New Era Securities and 10 related personnel.

The Beijing Securities Regulatory Bureau pointed out that before the takeover, the former New Era Securities failed to truthfully report to the regulator the shareholding ratio of the actual controller, imperfect internal control, and chaotic operation and management in accordance with the regulations, reflecting the company's failure to effectively implement compliance management. Based on this, the Beijing Securities Regulatory Bureau decided to take administrative supervision measures against the original New Era Securities.

In addition, the then "directors, supervisors and senior executives" who were responsible for the relevant violations of laws and regulations were also taken by the Beijing Securities Regulatory Bureau to identify them as inappropriate persons, supervise interviews, issue warning letters and other administrative supervision measures.

The original New Era Securities has been renamed as Chengtong Securities. Regarding the fine, Chengtong Securities said in an interview that the administrative supervision measures are the regulator's handling opinions on the failure to truthfully report the shareholding ratio of the actual controller to the regulator before the original New Era Securities was taken over by the CSRC in July 2020. Since the end of the escrow, the company has not received regulatory penalties for new violations.

The original New Era Securities was subject to regulatory talks

On April 26, the website of the China Securities Regulatory Commission showed that the Beijing Securities Regulatory Bureau disclosed administrative supervision measures for the original New Era Securities and related personnel.

The Beijing Securities Regulatory Bureau pointed out that before the takeover, the original New Era Securities failed to truthfully report the shareholding ratio of the actual controller to the regulator as required, as well as imperfect internal control and chaotic operation and management, reflecting the company's failure to effectively implement compliance management and violating the "Trial Provisions on Compliance Management of Securities Companies" and "Measures for the Compliance Management of Securities Companies and Securities Investment Fund Management Companies" and other relevant regulations.

Based on this, the Beijing Securities Regulatory Bureau decided to take administrative supervision measures against the original New Era Securities. The Beijing Securities Regulatory Bureau required the company's legal representative to bring a valid identity document to the Beijing Securities Regulatory Bureau for a regulatory interview on April 25.

In fact, as early as July 2020, in view of the problems of concealing shareholder affiliation and corporate governance imbalance of the original New Era Securities, in accordance with the provisions of the Securities Law and the Regulations on Risk Disposal of Securities Companies, the China Securities Regulatory Commission decided to take over the original New Era Securities. The original receivership period was from July 17, 2020 to July 16, 2021, but after the expiration of the receivership period, the CSRC extended the receivership period by one year in accordance with the law.

A number of then "directors, supervisors and senior executives" were punished

In addition to the company itself, the 10 "directors, supervisors and senior executives" of the former New Era Securities were also taken by the Beijing Securities Regulatory Bureau to take corresponding administrative supervision measures.

Specifically, a total of 4 people were identified as unsuitable candidates, namely Tian Dejun, then chairman and general manager, Liu Rujun, then chairman, Wan Yong, then deputy general manager in charge of investment banking business, and Feng Zhaobo, then secretary of the board of directors, who were respectively identified as unsuitable candidates for 3 years, 6 years, 10 years, and 1 year.

Among them, Wan Yong has been identified as an unsuitable person for the longest time. The Beijing Securities Regulatory Bureau pointed out that before the takeover of the original New Era Securities, the investment banking business had a number of projects with non-standard third-party payments, inadequate project management, imperfect working papers and other matters, as well as many risky projects, huge economic losses and repeated regulatory penalties, reflecting the poor quality of investment banking business practice and bad impact. Wan Yong, then deputy general manager in charge of investment banking, was responsible.

In addition, Guo Qingtao, then chairman of the board of supervisors, Ye Shunde, then chairman and general manager, Zhou Guangping, head of compliance, and Qin Hao, deputy general manager and head of finance, were taken administrative supervision measures to issue regulatory talks. From the perspective of the reasons for the violation, it involved the failure of the original New Era Securities to effectively manage compliance, and there were problems such as the failure to truthfully report the shareholding ratio of the actual controller for a long time before it was taken over, and the inadequate management of the asset management business.

In addition to the above-mentioned personnel, Yang Cheng, then head of the board office, and Wu Jincheng, then head of the human resources department, were also taken by the Beijing Securities Regulatory Bureau to issue a warning letter.

The company's response: It will adhere to the business philosophy of compliance and stability in response to the problems before the takeover

Chengtong Securities said in an interview that this administrative supervision measure is the regulator's handling opinion on the failure of the original New Era Securities to be taken over by the CSRC in July 2020, and other issues such as failing to truthfully report to the regulator the shareholding ratio of the actual controller in accordance with the regulations.

After the end of the custody of the original New Era Securities and China Chengtong Group became the main shareholder of the company, the company changed its name to Chengtong Securities, and ensured the company's compliance and steady operation through a series of measures such as comprehensively strengthening the company's party building, standardizing and improving corporate governance, and strengthening compliance and risk control management. Since the end of the escrow, the company has not received regulatory penalties for new violations.

In the future, the company will conscientiously implement the spirit of the Central Financial Work Conference, adhere to the strategic mission of serving the real economy, serving the high-quality development of state-owned central enterprises, and serving the operation of state-owned capital, be investor-oriented, give full play to its professional advantages, adhere to the business philosophy of compliance and stability, be a good "gatekeeper" of the capital market, continue to comprehensively promote the high-quality development of the company, and strive to become a first-class securities company with the characteristics of state-owned capital operation.

Previously, the market paid a lot of attention to the original New Era Securities, which has gradually embarked on the road of steady operation since the equity change and name change in 2022.

In December 2021, China Chengtong Group, a state-owned capital operation company, successfully acquired 98.24% of the equity of the original New Era Securities through a public transaction on the Beijing Equity Exchange, and obtained two financial licenses from the securities company and the public fund company controlled by it, enhancing and improving the functional role of its state-owned capital operation.

In March 2022, the China Securities Regulatory Commission approved China Chengtong Group to become a major shareholder of the former New Era Securities and the actual controller of Rongtong Fund. On May 27, 2022, the China Securities Regulatory Commission (CSRC) concluded the administrative takeover of the former New Era Securities and approved its resumption of normal operations. In June of the same year, New Era Securities changed its name to Chengtong Securities and officially became a subsidiary of a central enterprise.

In the past two years since the merger and acquisition of China Chengtong Group, the operation of Chengtong Securities has gradually returned to the right track, and its performance has stabilized and rebounded, effectively reversing the unfavorable situation of serious brain drain and business stagnation. In 2022, the company achieved a net profit of 424 million yuan (consolidated statement), an increase of 46.06% over 2021. In 2023, the company's various businesses will also maintain stable growth, showing a good momentum of development.

It is reported that Chengtong Securities is committed to characteristic and differentiated development, and continues to make continuous efforts in implementing the leadership of party building, reshaping the development strategy, improving the management level, strengthening risk management and control, and strengthening cultural construction. The company takes serving the reform and development of central state-owned enterprises as its business characteristics, provides comprehensive financial services for state-owned central enterprises, creates characteristic investment banking, asset management and research businesses, and establishes a unique brokerage brand in the capital market.

Editor: Captain

Review: Xu Wen