On the first day of the start of construction, a listed brokerage company was fined by regulators! On February 18, the official website of the China Securities Regulatory Commission announced three administrative supervision measures. Among them, Huaan** was ordered to correct administrative supervision measures by the Anhui Securities Regulatory Bureau. 
From the point of view of engagement, Huaan** is involved in problems such as imprudent production of research reports, deficiencies in the management of margin financing and securities lending business, and insufficient due diligence of individual investment banking projects. Huaan** said that it will immediately rectify in accordance with regulatory requirements, strengthen the internal control and compliance management of related businesses, improve the level of internal management and corporate governance, and promote the company's sustainable, steady and standardized development. Let's see the details"Zuojiang Science and Technology" and other research reportsThe production is not prudentThe Anhui Securities Regulatory Bureau pointed out that the research reports related to "Zuojiang Technology" released by Huaan ** were not prudently produced. "Zuojiang Technology" is the "most expensive ST stock" in the market*ST Zuojiang. Due to the announcement of its participation in the computing power business, even after "wearing a hat with stars", the share price of *ST Zuojiang was also speculated, reaching a maximum of 299$8 shares. On January 31, February 25, and March 25, 2023, *ST Zuojiang issued three consecutive announcements that the company's ** transactions may be subject to delisting risk warning. However, on April 25, 2023, Huaan** released an in-depth research report entitled "The Bright Pearl in the Field of Computing Power, DPU Volume, Riding the Momentum", and recommended **Zuojiang Technology. 
In this research report, analyst **Zuojiang Technology will achieve revenue of 0600 million yuan, 9300 million yuan, 13400 million yuan, a year-on-year increase; Achieved net profit attributable to the parent company -1400 million yuan, 35.1 billion yuan, 62.5 billion yuan, the first coverage was given a "** rating." On January 29, the China Securities Regulatory Commission (CSRC) announced the progress of the phased investigation of the *ST Zuojiang financial fraud case. After preliminary investigation, the financial information disclosed by *ST Zuojiang in 2023 is seriously untrue and suspected of major financial fraud. The China Securities Regulatory Commission said that the case is currently under investigation, and the facts of the violation will be ascertained as soon as possible and seriously dealt with in accordance with the law. On the evening of January 30, *ST Zuojiang released a performance forecast, and the company expects a net profit loss of 1600 million to 22.5 billion yuan, the loss further expanded, and the loss was 1 in the same period last year4.7 billion yuan. Since then, *ST Zuojiang has walked out of the "20cm" drop limit for many days. As of February 8**, ST Zuojiang's share price was only 1766 yuan shares. 
On February 5, the Shenzhen Stock Exchange issued a warning letter to Huaan**. The Shenzhen Stock Exchange believes that the analysis conclusions of the relevant research reports released by Huaan** are not based on sufficient evidence, the conclusions are not prudent, the investment risks are not fully revealed, and the company is not strict in the quality review of the research reports. 
There are deficiencies in the company's internal control and corporate governanceIn addition to the research report issues, Huaan** encountered regulatory naming this time, which also involved company management and business issues. Specifically, the Anhui Securities Regulatory Bureau pointed out that Huaan** has deficiencies in personnel management, network security management, and margin financing and securities lending business management. In addition, in the process of carrying out investment banking business, Huaan** did not conduct sufficient due diligence on individual projects, did not strictly control the quality and core, and did not continue to supervise it in place. The Anhui Securities Regulatory Bureau believes that the above problems reflect the deficiencies in Huaan's internal control and corporate governance, and decided to take administrative supervision measures against its company to order corrections, and record them in the market integrity file. Huaan** shall submit a written rectification report to the Anhui Securities Regulatory Bureau within 30 days from the date of receipt of the decision. On the evening of February 18, Hua'an** announced the news of receiving the decision on administrative supervision measures from the Anhui Securities Regulatory Bureau. 
Huaan** said that the company will immediately rectify in accordance with regulatory requirements, strengthen the internal control and compliance management of related businesses, improve the level of internal management and corporate governance, and promote the company's sustainable, steady and standardized development. At present, the company's business situation is normal, please pay attention to the investment risk. As of Feb. 8**, Huaan** shares were trading at 466 yuan shares, with a total market value of 21.9 billion yuan. 
Editor: Xiaomo Review: Xu Wen.