TechFlow, September 27 — According to a report by Cailian Press, due to multiple compliance deficiencies in the management of overseas subsidiaries, the Zhejiang Securities Regulatory Bureau has issued administrative penalties. Caihong Securities and Qian Bin, Assistant General Manager of the company and former Chairman of Caihong Securities (Hong Kong), have both been issued warning letters. The relevant records will be entered into the securities and futures market integrity archive.
It is reported that Caihong Hong Kong obtained client trading qualifications for virtual asset ETFs in June this year, becoming one of the first Chinese-funded institutions eligible to offer brokerage services for Bitcoin and Ethereum-related ETFs. In 2024, Caihong Hong Kong completed approximately HK$21.2 billion in offshore bond financing. According to the penalty notice disclosed by the Zhejiang Securities Regulatory Bureau, Caihong Securities failed to establish an effective risk isolation and control system for its overseas subsidiary, resulting in an expanded cross-border operational risk exposure.
