For investors who have been immersed in the market for a while, the idiom 'flagship of a bull market' will not be unfamiliar.

Yes, it refers to the brokerage sector.

Since September 24th, the brokerage and non-banking financial sectors have played the role of 'flagship' in the entire market trend, not only experiencing significant increases themselves, but also driving the stocks of other industries to rise one after another.

But on October 14th, this situation faced a 'challenge'.

On that day, China International Capital Corporation plunged more than 8% shortly after the market opened, and at one point remained in a long trading halt.

Under its 'leadership', the overall pressure on the securities sector was evident. If it were not for the banking stocks 'pulling the chestnuts out of the fire' during the trading day, the continuity of the entire market trend could have been affected.

So what factors caused China International Capital Corporation, also known as the 'aristocrat of investment banks', to trigger a trading halt at one point?

What logic is causing the embarrassment of the brokerage industry to slowly 'spread' to the whole market?

China International Capital Corporation's A shares hit the limit down during the trading session.

On October 14th (Monday), shortly after the A-share market opened for less than an hour, China International Capital Corporation's A shares were the first to hit the limit down, which immediately put pressure on the stock prices of the entire brokerage sector.

China International Capital Corporation has always ranked among the top two large brokerage institutions in the industry in terms of brand and business reputation, also known as the 'nobility of investment banking'.

Its intraday limit down left concerned investors momentarily stunned.

Fortunately, the stock price of China International Capital Corporation rebounded slightly before noon's close.

By the close, China International Capital Corporation's A shares had dropped nearly 8 percentage points in a single day.

Listed in Hong Kong also has a large amplitude of volatility.

Similar to A shares, the performance of China International Capital Corporation's listed in Hong Kong is relatively weak.

Let's take a look at China International Capital Corporation's listed in Hong Kong again. There was also a 10% decline during the morning trading session, followed by a slight narrowing of the decline.

Another 'main character' follows the decline.

Zishi Hall found that after the closing of the A-share brokerage sector on October 13, China International Capital Corporation led the decline of all listed brokerages, with China Galaxy Securities ranking second in terms of single-day decline.

China Galaxy's single-day decline exceeded 4 percentage points.

In fact, a few days ago, there were rumors in the market about the so-called "China International Capital Corporation merging with China Galaxy".

However, at the opening on Monday this week, the two protagonists in this rumor both led the decline of the entire securities sector.

Was the fine the "catalyst"?

The leading decline by China International Capital Corporation on Monday this week reminded many investors of the filing notice from the China Securities Regulatory Commission last Friday (October 11).

On the evening of October 11, China International Capital Corporation disclosed an announcement stating that the company had received the "Filing Notice" from the China Securities Regulatory Commission on the same day. Due to the company's alleged inadequate diligence in the initial public offering stock sponsorship business, according to the laws and regulations of the People's Republic of China Securities Law and the People's Republic of China Administrative Penalty Law, the China Securities Regulatory Commission decided to file a case against the company.

Seerene, the IPO company in which the China International Capital Corporation investment banking team participated in sponsorship. On July 27, 2022, the Shanghai Stock Exchange decided to terminate the review of this project.

The result of the CSRC investigation found that Seerene fabricated significant false information in the securities issuance documents disclosed. Two sponsorship representatives including the deputy general manager of China International Capital Corporation's investment banking department had signed on the prospectus.

This case investigation can be said to be "unexpected" for many investors, after all, a well-known investment bank institution facing a filing in its top investment banking operations, the follow-up handling results and rectification measures are indeed of great concern.