Controversies

Galaxy Securities ordered to rectify multiple investment banking and internal control issues

The CSRC found that some Galaxy Securities projects were not performed with due diligence, bond issuance and subscription information disclosure was insufficient, quality control was not strict, individual employees used others to collect bonuses on their behalf to evade taxes, and integrity management of subsidiaries was inadequate; it ordered the company to rectify and conduct internal accountability. Status: CSRC administrative regulatory measure. Subject: China Galaxy Securities Co., Ltd.

Former Chairman Chen Gongyan Under Investigation and Company Issued Warning Letter

In November 2023, the Central Commission for Discipline Inspection and the National Supervisory Commission announced that Chen Gongyan, former Party Secretary and Chairman of China Galaxy Securities, was suspected of serious violations of discipline and law and was placed under review and investigation; in April 2024, the company was issued a warning letter by the Beijing Securities Regulatory Bureau for imprudent OTC options and stock pledge business and inadequate monitoring of employee investment behavior, and Vice President Luo Liming was warned as well. Chen was investigated; the company was warned.

People’s Bank of China branch fines Galaxy Securities’ Inner Mongolia branch

Fine or penalty

The People’s Bank of China Hohhot Central Sub-branch fined Galaxy Securities’ Inner Mongolia branch RMB 400,000 for failing to effectively perform required anti-money-laundering customer identification and to submit suspicious transaction reports. It also fined two branch managers RMB 10,000 each.