Several securities firms, including Citic Securities and Guotai Junan, have been warned by regulators for violations in their investment banking business.

Several securities firms have been named by regulators for violations in investment banking operations. According to recent disclosures by the Shanghai Stock Exchange, Citic Securities, Guotou Securities, and several insurance agents have been given regulatory warnings for violating the regulations on the classification review mechanism for refinancing of listed companies. At the same time, Huafu Securities and Minmetals Securities have also been warned in writing by the Shanghai Stock Exchange and Shenzhen Stock Exchange respectively for various violations in their investment banking operations. According to incomplete statistics from reporters, as of May 18th, more than 30 securities firms have been named by regulators for violations in investment banking operations this year. The regulatory authorities have been enforcing strict penalties on intermediary institutions for violations, and have also strengthened supervision on fees charged by intermediary institutions and internal controls of investment banks.