The CSRC strictly investigates and punishes illegal and violations at Tianfeng Securities

Recently, the China Securities Regulatory Commission (CSRC) issued a prior notice of administrative penalties and market bans regarding Tianfeng Securities Co., Ltd. for providing illegal financing and information disclosure violations to Wuhan Contemporary Technology Industry Group Co., Ltd. During the investigation, it was found that from 2020 to 2022, Tianfeng Securities illegally provided financing to the former largest shareholder, Contemporary Group, and failed to disclose related-party transactions with Contemporary Group as required. Contemporary Group and Tianfeng Securities jointly engaged in related illegal activities, seriously violating securities laws and regulations. The Hubei Securities Regulatory Bureau plans to impose a maximum fine of 25 million yuan on Tianfeng Securities and Contemporary Group combined, fine nine responsible personnel a total of 34.8 million yuan, and impose lifelong securities market bans on Ai Luming, the actual controller of Contemporary Group; Yu Lei, then Chairman of Tianfeng Securities; and Xu Xin, then Vice President and Chief Financial Officer. For illegal activities related to business operations and internal control compliance by Tianfeng Securities and involved personnel, the Hubei Securities Regulatory Bureau plans to take administrative regulatory measures such as suspending relevant business activities, ordering disciplinary actions against responsible personnel, and conducting regulatory interviews. The Shanghai Stock Exchange plans to impose maximum disciplinary sanctions on Tianfeng Securities, Contemporary Group, and related responsible personnel in accordance with regulations. (CSRC)