The China Securities Regulatory Commission (CSRC) imposed administrative penalties on H&H Futures Co., Ltd., ordering rectification, issuing a warning, fining the firm CNY 6.10 million, and revoking its futures business licence. The CSRC found H&H Futures failed to effectively implement key internal management systems, including subsidiary management, and did not properly discharge management responsibilities for its subsidiary H&H Asset Management (Shanghai) Co., Ltd., contributing to a major risk event. The CSRC also cited failures to meet reporting obligations and repeated submission of untrue and incomplete information. It identified, among other issues, non-disclosure in multiple filings including 2020–2022 periodic reports of certain shareholders’ actual controllers and shareholding-by-proxy arrangements, incomplete reporting of newly opened bank accounts at the subsidiary, and failure to report related parties opening accounts at the firm and trading futures. The enforcement followed a sequence of earlier measures from February 2024, a formal investigation opened in April 2024, and a CSRC takeover of the firm implemented in November 2024. With the licence revoked, H&H Futures may no longer accept new client account-opening applications and must promptly wind down its existing futures business. During the wind-down, the takeover and custody teams will take measures to safeguard client funds and maintain operational stability, and after the wind-down the continuing entity must complete business registration changes including removing “futures” (or similar wording) from its name and ceasing to operate in the capacity of a futures company.
China Securities Regulatory Commission 2025-02-08
China Securities Regulatory Commission revokes H&H Futures’ licence and fines CNY 6.10 million over subsidiary oversight and false reporting
The China Securities Regulatory Commission (CSRC) imposed penalties on H&H Futures Co., Ltd., including a CNY 6.10 million fine and revocation of its futures business licence, due to failures in internal management and reporting obligations. The firm must cease new client account openings and wind down its futures business, with takeover teams ensuring client fund safety and operational stability. After winding down, the entity must amend its business registration to remove "futures" from its name.