China Securities Regulatory Commission gives written warning to China Merchants Securities

category:Finance
 China Securities Regulatory Commission gives written warning to China Merchants Securities


At the same time, the Shanghai Stock Exchange issued a regulatory warning letter to China Merchants Securities. The Shanghai Stock Exchange identified that during the period when China Merchants Securities was underwriting and acting as the trustee of brilliance Automobile Group Holding Co., Ltd. in 2017 non-public issuance of corporate bonds (phase II) (hereinafter referred to as 17 Huaqi 05 bonds), there were violations such as failure to timely perform the trustees duty of information disclosure and failure to effectively perform the trustees credit risk management responsibility.

China Securities Regulatory Commission issued warning letter to brilliance group and filed a case for investigation

On October 23, 2020, the company bond 17 Huaqi 05 bond privately issued by brilliance group in Shanghai Stock Exchange in October 2017 failed to be paid in full and on time. The bond was underwritten by China Merchants Securities and acted as the trustee.

According to the information just released on the official website of the Securities Regulatory Commission, the recent default of brilliance group on bonds has aroused market attention. China Securities Regulatory Commission (CSRC) has carried out special inspection on it in accordance with the law. According to the inspection results, it has taken administrative supervision measures to issue warning letters to brilliance group, and decided to file a case to investigate its suspected illegal information disclosure, conduct synchronous inspection on intermediary agencies involved in relevant bonds of brilliance group, and seriously investigate and punish relevant illegal behaviors.

According to the information on the official website of the CSRC, the CSRC attaches great importance to the protection of the legitimate rights and interests of investors, comprehensively implements the zero tolerance requirement of the financial commission of the State Council, severely crack down on all kinds of illegal behaviors in accordance with the law, and maintain a good order of the bond market. At the same time, we will continue to maintain and give full play to the normal functions of the bond market, and support enterprises of all types of ownership to develop financing through the bond market in accordance with the law.

In the next step, the CSRC will do a good job in supervision in accordance with the law, firmly hold the bottom line of no systemic risk, deepen reform, improve the system, implement responsibilities and strict supervision, so as to promote the stable and healthy development of the bond market.

Shanghai Stock Exchange Issues regulatory warning letter on China Merchants Securities

At the same time, the Shanghai Stock Exchange also issued a regulatory warning letter to China Merchants Securities.

Failing to perform the duty of information disclosure of the trustee in time.

Failure to effectively perform the trustees credit risk management responsibilities.

According to the prospectus, 17 Huaqi 05 debt shall be due and paid on October 23, 2020. Up to now, brilliance group has not yet completed the principal payment of 17 Huaqi 05 bonds. As the trustee of the current bond, China Merchants Securities failed to timely and effectively track, monitor, investigate and warn the significant adverse changes in liquidity risk and solvency of brilliance group, and failed to timely adjust the bond risk classification when there was a significant debt repayment risk in 17 Huaqi 05 bonds.

The SSE believes that the above-mentioned behaviors of China Merchants Securities violate articles 1.6, 3.3.5 and 4.2.3 of the rules on listing and transfer of corporate bonds of non-public Development Bank of Shanghai Stock Exchange (hereinafter referred to as the Listing Rules), and Article 6, Article 9, 18 of the guidelines for the management of credit risk in the duration of corporate bonds of Shanghai Stock Exchange (Trial) (hereinafter referred to as the risk management guidelines) The relevant provisions of articles 21 and 33. In view of the nature and circumstances of the above-mentioned behaviors, the SSE decided to give written warning to China Merchants Securities in accordance with the relevant provisions of articles 1.8, 6.2 and 6.3 of the listing rules and Article 56 of the risk management guidelines. The SSE requires that China Merchants Securities take the warning, strengthen the entrusted management of corporate bonds in strict accordance with the provisions and agreements, effectively perform the duties of entrusted management, timely fulfill the obligation of information disclosure, effectively protect the legitimate rights and interests of bondholders and maintain the normal order of the bond market. It is reported that the SSE will continue to pay attention to the rectification of violations of China Merchants Securities. If other violations are found in the company, the SSE will take further self-discipline supervision measures as the case may be. Editor: Zhuyin Securities Regulatory Commission: To investigate and extend the investigation of brilliance automobile filing; read the relevant measures taken by CSRC to brilliance automobile group and related intermediary agencies Renault China: Brilliance Renault gold cup is the normal weight of independent legal entity operation at present! Official bankruptcy reorganization of brilliance group claims to try to recover creditor losses source: Shanghai Securities Journal liability editor: Zhong Qiming_ NF5619

The Shanghai Stock Exchange believes that the above behaviors of China Merchants Securities violate articles 1.6, 3.3.5 and 4.2.3 of the Listing Rules of Shanghai stock exchange for the listing and transfer of corporate bonds of non public development banks (hereinafter referred to as the Listing Rules), and articles 6, 9 and 18 of the credit risk management guidelines for the duration of corporate bonds of Shanghai Stock Exchange (Trial) (hereinafter referred to as the risk management guidelines) Article 21 and Article 33.

In view of the nature and circumstances of the above-mentioned behaviors, in accordance with articles 1.8, 6.2 and 6.3 of the listing rules and Article 56 of the risk management guidelines, the Shanghai Stock Exchange decided to give a written warning to China Merchants Securities.

The Shanghai stock exchange requires China Merchants Securities to take a warning, strengthen the entrusted management of corporate bonds in strict accordance with the regulations and agreements, earnestly perform the duty of entrusted management, timely perform the obligation of information disclosure, effectively protect the legitimate rights and interests of bond holders, and maintain the normal order of the bond market.

It is reported that the Shanghai Stock Exchange will continue to pay attention to the rectification of violations of China Merchants Securities. If other violations are found in the company, the Shanghai Stock Exchange will further take self-discipline supervision measures according to the situation.

Editor: Zhu Yin

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