In 2024, the evaluation of the cultural construction practices of securities companies will be launched, with heavier penalties for significant reputational incidents.

On April 27th, reporters exclusively learned from industry insiders that the China Securities Industry Association recently issued a notice within the industry, officially launching the practice evaluation of cultural construction in securities companies for the year 2024. The CSIA stated that from January 1, 2025 until the evaluation results are announced and before the classification evaluation results are formed, if a securities firm experiences a major reputation event, the association may deduct points or downgrade the firm in the evaluation for that year after expert group evaluation and consultation with regulatory authorities. In the evaluation review, securities firms that cause major reputation events due to extravagant display of wealth or have compensation or management defects will be heavily penalized. According to the arrangements made by the CSIA, the practice evaluation of cultural construction in securities companies for the year 2024 will still be based on the "Indicators for the Practice Evaluation of Cultural Construction in Securities Companies." It is understood that the companies participating in this evaluation are the same as those participating in the classification evaluation of securities companies for the year 2024.