Guoyuan Securities Co Ltd

The China Securities Regulatory Commission has issued a batch of administrative regulatory decision letters, ordering three brokerages—Guoyuan Securities, Yongxing Securities, and Guorong Securities—to take corrective measures, and issuing warning letters to their then-heads of investment banking. Guoyuan Securities was found to have inadequate due diligence in underwriting and sponsorship projects, lax quality control and internal review, and insufficient rectification of integrity issues. Li Zhoufeng, then-head of investment banking, received a warning letter. Yongxing Securities had inadequate due diligence execution in underwriting and sponsorship projects, lax quality control and internal review, and irregular compensation management. Jin Yongxiong, then-head of investment banking, received a warning letter. Guorong Securities had inadequate due diligence in underwriting and sponsorship projects, lax quality control and internal review, and inadequate management of document submission and approval. Liu Meng, then-head of investment banking, received a warning letter. All three brokerages are required to submit written accountability reports to their local securities regulatory bureaus.

On July 31, the China Securities Regulatory Commission decided to order Guoyuan Securities to take corrective measures, citing insufficient due diligence, lax quality control and internal review, integrity issues, and inadequate rectification in its underwriting and sponsorship projects. At the same time, Li Zhoufeng, the former head of investment banking, was issued a warning letter.