Due to problems in its off-exchange derivative business, Caitong Securities was ordered by the regulatory authorities to make corrections.

On November 7th, the Zhejiang Securities Regulatory Bureau issued a notice stating that after investigation, there were the following problems in Caitong Securities' over-the-counter derivatives business: the underlying asset management mechanism was not sound, timely dynamic adjustments were not made to the linked assets; the annual qualification review of investors was incomplete; effective management was not implemented for business management system permissions and passwords. The above situation does not comply with relevant regulations, and the Zhejiang Securities Regulatory Bureau has decided to take supervisory measures to compel Caitong Securities to correct these issues. It was pointed out that Caitong Securities should take this as a warning, thoroughly rectify the above-mentioned problems, take effective measures to improve the internal control and compliance management level of the over-the-counter derivatives business, and submit a written rectification report within 30 days from the date of receiving this decision. At the same time, the Zhejiang Securities Regulatory Bureau stated that Pei Gencai, as a senior management member of Caitong Securities, was in charge of the relevant business and bore management responsibility for the company's aforementioned violations. It was decided to issue a warning letter as a supervisory measure to him and record it in the securities and futures market integrity file.