On January 8, Gelonghui reported that Soochow Securities (601555.SH) announced that it had received the "Administrative Penalty Decision" from the China Securities Regulatory Commission (CSRC). The CSRC found that Soochow Securities failed to exercise due diligence and did not carefully verify the authenticity and accuracy of the issuance and fundraising documents while providing sponsorship and underwriting services for Gome Communications' private placement of stocks in 2020. The submitted documents, including the "Issuance Sponsorship Letter" and the "Report on the Compliance of the Issuance Process and Subscription Objects for the Private Placement of Stocks," contained false records. These actions violated the provisions of Article 10, Paragraph 2, and Article 29 of the Securities Law, constituting breaches under Articles 182 and 184 of the Securities Law. Zhang Qi and Wang Xin were the responsible supervising personnel for Soochow Securities' violations.
The China Securities Regulatory Commission believes that Soochow Securities failed to exercise due diligence while providing sponsorship (including ongoing supervision) services for Zixin Pharmaceutical's private placement of stocks in 2014. The submitted documents, including the "Issuance Sponsorship Letter," contained false records. These actions violated the provisions of Article 11, Paragraph 2 of the Securities Law of 2005, constituting breaches under Article 192 of the Securities Law of 2005. Jiang Xuchun and Li Jiajia were the responsible supervising personnel for Soochow Securities' violations.
The China Securities Regulatory Commission decided: 1. To order Soochow Securities Co., Ltd. to make corrections and issue a warning. For the Gome Communications project, 943,396.23 yuan of sponsor income was confiscated, and a fine of 1 million yuan was imposed, along with a confiscation of illegal income from underwriting operations of 4,716,981.13 yuan and a fine of 0.5 million yuan; for the Zixin Pharmaceutical project, confiscation of sponsor income of 2,068,000 yuan and a fine of 4,136,000 yuan; 2. A warning was given to Zhang Qi, and fines of 0.5 million yuan and 0.2 million yuan were imposed for sponsorship and underwriting practices respectively; 3. A warning was given to Wang Xin, and fines of 0.5 million yuan and 0.2 million yuan were imposed for sponsorship and underwriting practices respectively; 4. A warning was given to Jiang Xuchun, along with a fine of 0.2 million yuan; 5. A warning was given to Li Jiajia, along with a fine of 0.1 million yuan.
