Bond and asset securitization business compliance management is not in place, Huabao Securities was ordered to make corrections within a specified period.

On April 24th, the Shanghai Securities Regulatory Bureau disclosed a penalty showing that Huabao Securities had some issues in its bond and asset securitization business, including "part of the bond projects did not follow internal control systems and business rules properly", "failure to implement adequate administrative supervision measures for suspending bond underwriting and asset securitization business", and "failure to strictly regulate the professional behavior of employees and effectively prevent compliance risks, inadequate compliance management", in violation of relevant regulatory provisions. The Shanghai Securities Regulatory Bureau imposed administrative supervisory measures on the company, including ordering it to make corrections within a time limit, increasing the frequency of internal compliance checks, and submitting compliance check reports, as well as issuing warning letters to relevant company personnel. In response, Huabao Securities stated that it takes the regulatory issues pointed out by the regulatory authorities very seriously, immediately initiated rectification, carefully studied and formulated rectification plans, and comprehensively implemented them. It has now completed the rectification on schedule and submitted a rectification report to the regulatory authorities. In addition, the company will strictly implement the requirement to increase internal compliance checks, regularly conduct compliance checks within the specified period, and timely submit check reports.