The China Securities Regulatory Commission (CSRC) published an enforcement update on Tianfeng Securities, after an investigation found the firm illegally provided financing to Wuhan Contemporary Technology Industry Group Co., Ltd. (Contemporary Group), its former largest shareholder, and failed to disclose related-party transactions with Contemporary Group between 2020 and 2022. The Hubei Securities Regulatory Bureau has issued an advance notice of administrative penalties, proposing combined fines of CNY 25 million for Tianfeng Securities and Contemporary Group, and combined fines of CNY 34.8 million for nine responsible individuals. It also proposes lifetime securities market bans for Ai Luming (actual controller of Contemporary Group), Yu Lei (then chairman of Tianfeng Securities) and Xu Xin (then vice president and chief financial officer), alongside administrative supervision measures including suspending relevant business, ordering punishment of responsible personnel and supervisory talks. The Shanghai Stock Exchange plans to impose disciplinary sanctions on Tianfeng Securities, Contemporary Group and relevant personnel, and the release notes that Contemporary Group’s equity stake in Tianfeng Securities has been transferred to relevant enterprises in Hubei Province.

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