CSRC fines China's Xinfu 3 million yuan and revokes its securities investment consulting business license.

The China Securities Regulatory Commission issued an administrative penalty decision, initiating an investigation and hearing on the illegal and irregular activities of Beijing Zhongfang Xinfu Investment Management Consulting Co., Ltd. After investigation, it was found that Zhongfang Xinfu, its former legal representative and chairman Zhang Song, had the following illegal facts: Zhongfang Xinfu did not comply with the regulations to keep documents and data related to a large number of clients, and such behavior had been previously fined by the China Securities Regulatory Commission. Zhongfang Xinfu conducted business privately and expanded its client base during the period when administrative supervision measures prohibited business activities, and also submitted false reports to securities regulatory authorities. The above illegal activities were serious and of a bad nature. Zhongfang Xinfu's failure to keep relevant documents and data as required violated Article 162 of the Securities Law and constituted the illegal act described in Article 214 of the Securities Law, with serious consequences. Zhang Song, as the former legal representative and chairman of Zhongfang Xinfu, had a management responsibility for Zhongfang Xinfu, and was a directly responsible supervisor for the above-mentioned illegal acts of Zhongfang Xinfu. The submission of false statements in documents and data by Zhongfang Xinfu to securities regulatory authorities constitutes the illegal act mentioned in Article 33, Section 1 of the Interim Measures for the Administration of Securities and Futures Investment Consulting, with serious consequences. The CSRC decided to impose a fine of 3 million RMB on Beijing Zhongfang Xinfu Investment Management Consulting Co., Ltd. and revoke its securities investment consulting business license. Zhang Song was given a warning and fined 600,000 RMB.