An accident happened to a listed company and two securities companies were supervised! What happened?

category:Finance
 An accident happened to a listed company and two securities companies were supervised! What happened?


Supervise the company to increase profit by more than 60%

On May 13, 2015, Zhongyu technology was listed and publicly transferred in the national stock transfer system. At the time of listing, the sponsor broker of Zhongyu technology was Pacific Securities, and on April 12, 2016, the sponsor broker was changed to Wanlian securities. On April 4, 2019, Zhongyu science and technology announced that because Zhongyu technology failed to disclose the 2016 annual report before June 30, 2017 (including June 30, 2017), the national small and medium-sized enterprise share transfer system decided to terminate the listing of Zhongyu technology shares from April 8, 2019.

According to the information publicly released by Guangdong securities regulatory bureau, Pacific Securities is the sponsor securities company that recommends Zhongyu technology to be listed and publicly transferred in the national stock transfer system and is responsible for the companys continuous supervision. The continuous supervision period is from May 13, 2015 to April 12, 2016. After Pacific Securities, Wanlian securities took over the supervision work, and its continuous supervision period was from April 12, 2016 to April 4, 2019.

However, no matter in the one-year supervision period of Pacific Securities or the three-year supervision process of Wanlian securities, the two securities companies did not find any greasy in the information disclosure of Zhongyu technology.

1u3001 The half annual report of 2015 increased profits falsely.

2u3001 Related party transactions failed to fulfill the review procedures and information disclosure obligations in a timely manner.

Warning letter issued

Supervision ordered Pacific Securities to formulate rectification measures

Guangdong securities regulatory bureau pointed out the two crimes when Pacific Securities supervised Zhongyu technology.

1. Pacific Securities, as the leading securities company of China Yuyu technology, failed to perform its legal duties diligently and strictly, and failed to timely pay attention to the above-mentioned violations and urge them to take effective measures to rectify them in the process of prior review of its information disclosure documents, continuous supervision of its information disclosure obligations and improvement of corporate governance mechanism;

2. In the process of issuing legal compliance opinions for the companys two stock issuance projects in 2015, the company failed to fully perform the duty of Prudential verification in accordance with the requirements of the relevant business rules of the national small and medium-sized enterprise stock transfer system, and improperly issued the company does not violate the provisions of Chapter II of the measures for the supervision and administration of unlisted public companies and the company has not violated the provisions of Chapter II of the measures for the supervision and administration of unlisted public companies on July 27 and August 12, 2015 During the listing period and the process of this stock issue, we have standardized and fulfilled the obligation of information disclosure and other special opinions, which failed to guarantee the authenticity, accuracy and integrity of the documents issued.

Frequently punished

Classification rating of Pacific Securities suffered four consecutive falls

It is worth noting that for Pacific Securities, the matter of being punished may have been a bit numb. In recent years, under the downturn in performance, Pacific Securities has encountered a lot of bad things, especially since this year, the company has been punished frequently.

In May this year, the Inner Mongolia Securities Regulatory Bureau ordered the Inner Mongolia Branch of Pacific Securities to make corrections and suspend the opening of new securities accounts for one year. Subsequently, Yunnan securities regulatory bureau took administrative supervision measures to order Pacific Securities to correct within a time limit and to increase the number of internal compliance inspections.

Not only that, Pacific Securities has a number of lawsuits. On the evening of September 25, Pacific Securities issued a notice on litigation and litigation progress, which showed that Pacific Securities and its subsidiaries had accumulated litigation (Arbitration) amount of 2.3 billion yuan (principal) in the past 12 months.

Combined with a variety of problems, the classification rating of Pacific Securities has also declined year by year. In the 2020 classified evaluation results of securities companies released by the CSRC not long ago, Pacific Securities was rated CCC, which was the fourth consecutive year of rating decline. From 2017 to 2019, Pacific Securities was rated a, BB, and B respectively.

Wanlian securities was also fined

Coincidentally, the day before Pacific Securities was fined, Wanlian securities was also issued a warning letter by Guangdong securities regulatory bureau.

Guangdong securities regulatory bureau said that Wanlian securities, as the leading securities company of Zhongyu technology, failed to fulfill its duties diligently and strictly perform its statutory duties, and failed to pay attention to the above-mentioned illegal behaviors of the company in a timely manner and urge it to take effective measures to rectify the information disclosure documents, continuously supervise its information disclosure obligations and improve the corporate governance mechanism This is in violation of Article 54 of the measures for the supervision and administration of unlisted public companies (Order No. 96 of the CSRC).

Guangdong Securities Regulatory Bureau requires Wanlian securities and related personnel to learn from the lessons, strengthen the study of securities laws and regulations, strengthen risk awareness, improve the quality of practice, and prevent the recurrence of similar incidents.

It is worth noting that, like Pacific, Wanlian securities is not calm this year.

The CSRC pointed out that in the process of Jiangxi huliangs application for IPO and listing, there were a lot of changes in the names, abstracts and subsidiary account records of the banks running counterparties, the incomplete disclosure of the related parties and the capital transactions such as loan write off and inter-bank lending, etc., as well as the defects in accounting basis and internal control. And its sponsor is Wanlian securities.

In addition, according to the official website of Zhejiang securities regulatory bureau, from June 3 to June 5, Zhejiang Securities Regulatory Bureau issued five regulatory letters, and relevant personnel of the business departments of four securities companies, including Wanlian securities, were punished for violating the regulations on Honest Employment and providing introduction for customer financing. According to the investigation, Liu Pan had the following behaviors when he was the person in charge of the securities business department of South Jiefang Road, Shaoxing, Wanlian Securities Co., Ltd.: first, he provided the convenience of introducing customers, providing margin, transferring securities account number and password, and collecting remuneration for clients entrusting others to buy and sell stocks; second, divulging regulatory investigation information; third, it was the disclosure of regulatory investigation information; Third, holding the equity of a private fund management company, failing to report as required, and having conflict of interest with your performance of duties. It must be noted that Wanlian securities is currently queuing up for IPO. As early as June last year, the company had submitted the prospectus. On the evening of April 17, this year, Wanlian securities IPO received the first feedback. The CSRC raised 32 questions in total, including three aspects of business standardization, information disclosure and financial accounting information. According to the data disclosed by the China Securities Regulatory Commission, in the latest classification evaluation of securities companies, the classification rating of Wanlian securities rose by one place compared with last year and returned to BBB level. Source: China fund daily Author: Wang Yuanye, editor in charge: Zhong Qiming_ NF5619

According to the data disclosed by the China Securities Regulatory Commission, in the latest classification evaluation of securities companies, the classification rating of Wanlian securities rose by one place compared with last year and returned to BBB level.