Huaxi Securities Ordered to Correct by Sichuan Securities Regulatory Bureau; Three Regulatory Actions in the Past Year

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China Economic Network, Beijing, March 24 - The Sichuan Securities Regulatory Bureau announced on March 20 the “Decision on Administrative Supervision Measures Against Huaxi Securities Co., Ltd. to Order Correction” and the “Decision on Administrative Supervision Measures Against Zhao Zhejie and Chen Yufang to Order Correction.”

The decision on administrative supervision measures against Huaxi Securities Co., Ltd. shows that, upon investigation, the Sichuan Securities Regulatory Bureau found issues such as inadequate due diligence on significant matters like collateral information, insufficient verification of the use of raised funds, and incomplete relevant work systems in the underwriting and entrusted management of certain bond projects. The above situation violates Articles 7, 34, 49 (2), and 50 (1) of the “Administrative Measures for the Issuance and Trading of Corporate Bonds” (CSRC Order No. 113) and Article 51 and 72 of the “Internal Control Guidelines for Investment Banking Business of Securities Companies” (CSRC Announcement [2018] No. 6). According to Article 58 of the “Administrative Measures for the Issuance and Trading of Corporate Bonds” (CSRC Order No. 113), the Sichuan Securities Regulatory Bureau decided to impose administrative supervision measures on Huaxi Securities Co., Ltd. to order correction.

The decision on administrative supervision measures against Zhao Zhejie and Chen Yufang shows that, upon investigation, the Sichuan Securities Regulatory Bureau found issues such as inadequate due diligence on significant matters like collateral information and insufficient verification of the use of raised funds in the underwriting and entrusted management of certain bond projects by Huaxi Securities Co., Ltd. The above situation violates Articles 7, 49 (2), and 50 (1) of the “Administrative Measures for the Issuance and Trading of Corporate Bonds” (CSRC Order No. 113). Zhao Zhejie and Chen Yufang, as project leaders, are responsible for the above issues. According to Article 58 of the “Administrative Measures for the Issuance and Trading of Corporate Bonds” (CSRC Order No. 113), the Sichuan Securities Regulatory Bureau decided to impose administrative supervision measures on Zhao Zhejie and Chen Yufang to order correction.

The Zhejiang Securities Regulatory Bureau issued on May 23, 2025, the “Decision on Administrative Supervision Measures Against Huaxi Securities Co., Ltd. Yiwu Mall Avenue Securities Business Department to Issue a Warning Letter,” the “Decision on Administrative Supervision Measures Against Wei Qian to Order Correction,” and the “Decision on Administrative Supervision Measures Against Tong Xuejun to Issue a Warning Letter.”

The Yiwu Mall Avenue Securities Business Department of Huaxi Securities Co., Ltd. has employees who engaged in investor solicitation activities by entrusting individuals outside of licensed securities brokers. The Zhejiang Securities Regulatory Bureau decided to impose administrative supervision measures on the Yiwu Mall Avenue Securities Business Department of Huaxi Securities Co., Ltd. to issue a warning letter, which will be recorded in the integrity file of the securities and futures market.

Wei Qian, as the head of the business department, is responsible for the above violations. The Zhejiang Securities Regulatory Bureau decided to impose administrative supervision measures on Wei Qian to order correction, and this will be recorded in the integrity file of the securities and futures market.

Tong Xuejun, as the head of the Zhejiang branch of Huaxi Securities Co., Ltd., is responsible for the inadequate compliance operations of the securities business departments under his jurisdiction. The Zhejiang Securities Regulatory Bureau decided to impose administrative supervision measures on Tong Xuejun to issue a warning letter, and this will be recorded in the integrity file of the securities and futures market.

The Chongqing Securities Regulatory Bureau’s website disclosed on March 21, 2025, the decision on administrative supervision measures against Huaxi Securities Co., Ltd. Chongqing Branch to issue a warning letter. Some employees of the Chongqing Branch’s securities business department engaged in soliciting clients by entrusting third parties outside of licensed securities brokers. The Chongqing Branch of Huaxi Securities did not adequately manage the professional conduct of its employees, and compliance and risk control were not stringent. The Chongqing Securities Regulatory Bureau decided to impose administrative supervision measures on Huaxi Securities Chongqing Branch to issue a warning letter, which will be recorded in the integrity file of the securities and futures market.

Statistics show that in the past year, Huaxi Securities has received regulatory measures three times.

The following is the original text:

Decision on Administrative Supervision Measures Against Huaxi Securities Co., Ltd. to Order Correction

Huaxi Securities Co., Ltd.:

Upon investigation, our bureau found that your company had issues such as inadequate due diligence on significant matters like collateral information, insufficient verification of the use of raised funds, and incomplete relevant work systems in the underwriting and entrusted management of certain bond projects. The above situation violates Articles 7, 34, 49 (2), and 50 (1) of the “Administrative Measures for the Issuance and Trading of Corporate Bonds” (CSRC Order No. 113) and Articles 51 and 72 of the “Internal Control Guidelines for Investment Banking Business of Securities Companies” (CSRC Announcement [2018] No. 6). According to Article 58 of the “Administrative Measures for the Issuance and Trading of Corporate Bonds” (CSRC Order No. 113), our bureau decided to impose administrative supervision measures on your company to order correction.

If you disagree with this supervisory measure, you may apply for administrative reconsideration to the China Securities Regulatory Commission within 60 days of receiving this decision notice, or you may file a lawsuit with a competent people’s court within 6 months of receiving this decision notice. During the reconsideration and litigation period, the above supervisory measures will remain in effect.

Sichuan Securities Regulatory Bureau

March 19, 2026

Decision on Administrative Supervision Measures Against Zhao Zhejie and Chen Yufang to Order Correction

Zhao Zhejie and Chen Yufang:

Upon investigation, our bureau found that Huaxi Securities Co., Ltd. had issues such as inadequate due diligence on significant matters like collateral information and insufficient verification of the use of raised funds in the underwriting and entrusted management of certain bond projects. The above situation violates Articles 7, 49 (2), and 50 (1) of the “Administrative Measures for the Issuance and Trading of Corporate Bonds” (CSRC Order No. 113).

As project leaders, you are responsible for the above issues. According to Article 58 of the “Administrative Measures for the Issuance and Trading of Corporate Bonds” (CSRC Order No. 113), our bureau decided to impose administrative supervision measures on you to order correction.

If you disagree with this supervisory measure, you may apply for administrative reconsideration to the China Securities Regulatory Commission within 60 days of receiving this decision notice, or you may file a lawsuit with a competent people’s court within 6 months of receiving this decision notice. During the reconsideration and litigation period, the above supervisory measures will remain in effect.

Sichuan Securities Regulatory Bureau

March 19, 2026

(责任编辑：华青剑)

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