Jianghai securities has been suspended for more than six months, and more than six senior executives have been restricted by the CSRC

category:Finance
 Jianghai securities has been suspended for more than six months, and more than six senior executives have been restricted by the CSRC


1. The self operation business of bonds shall be suspended for 6 months (the existing bonds can be sold and no new purchases are allowed, except for the necessary bond transactions to prevent liquidity risk, and the scale of the funds involved in the repurchase transaction shall not be increased).

2. The filing of asset management products shall be suspended for 6 months (except for the newly established products for the unexpired assets held in accordance with the regulations to continue the stock of products due, but no new investment is allowed).

3. The business of stock pledged repo is suspended for 6 months (the surviving contract may be extended in accordance with regulations).

The main business has been punished for 6 months in the industry!

The financial industry stresses efficiency. Once a securities firm was suspended for six months due to the punishment of IPO fake investment banks, which directly led to the companys strategic abandonment of investment banking business lines.

This time, the three major businesses of Jianghai securities were suspended for six months by regulatory penalties. For this small securities firm, the consequences to bear are not light.

The basis for the CSRC to punish Jianghai securities is that in the course of investigation, it has found that Jianghai securities has many problems: 1) in the process of carrying out bond investment and trading, there are problems such as insufficient management of traders qualification and trading behavior, inadequate management of subject securities and counterparties, and insufficient effectiveness of compliance management and risk control; 2) there are violations in carrying out securities asset management business New channel business, internal management confusion, risk management is not in place and other issues; 3) there are some problems in carrying out stock pledge business, such as business decision-making is too formal, due diligence is not sufficient, internal control is not perfect and so on.

Specifically:

1. Rao Xihao, as the vice president in charge of self operation business of Jianghai securities, Kong Dezhi, as the vice president in charge of asset management business, and Jiang Baolin, as the vice president in charge of stock pledge business, is responsible for the problems of Jianghai securities. The CSRC plans to make a decision on the supervision and management measures to identify Rao Xihao, Kong Dezhi and Jiang Baolin as inappropriate candidates and restrict the relevant rights.

2. As the compliance director and chief risk officer of Jianghai securities, Ge Xin is responsible for the management of the problems existing in Jianghai securities. China Securities Regulatory Commission plans to make a decision on the supervision and management measures to denounce Ge Xin publicly and restrict relevant rights.

In 2019, Haitou, the parent company of Jianghai securities, realized a net profit of 189 million yuan after deducting non profits. However, as a wholly-owned subsidiary of Jianghai securities, the provision for asset impairment in 2019 was up to 423 million yuan. This is a profit height that the parent company has never achieved. From the asset impairment details, it mainly occurs in the stock pledge repurchase business. The stocks involved mainly include * ST Hemei (002356. SZ), Tianguang Zhongmao (002509. SZ), Honggao creative (002504. SZ), Yuheng Pharmaceutical (002437. SZ) and Tianxia wisdom (000662. SZ). The amounts involved are RMB 59.66 million, RMB 130 million, RMB 60.75 million, RMB 130 million and RMB 29.11 million respectively. Source: responsible editor of 21st century economic report: Wang Xiaowu_ NF

In 2019, Haitou, the parent company of Jianghai securities, realized a net profit of 189 million yuan after deducting non profits.

From the asset impairment details, it mainly occurs in the stock pledge repurchase business. The stocks involved mainly include * ST Hemei (002356. SZ), Tianguang Zhongmao (002509. SZ), Honggao creative (002504. SZ), Yuheng Pharmaceutical (002437. SZ) and Tianxia wisdom (000662. SZ). The amounts involved are RMB 59.66 million, RMB 130 million, RMB 60.75 million, RMB 130 million and RMB 29.11 million respectively.