In May, many securities firms were fined, and regulators closely monitored the compliance shortcomings of branch institutions.

Since May, a large number of penalties have been issued to securities firms. Many securities companies have been subject to administrative supervision by regulatory authorities due to issues such as poor management of branch offices and inadequate performance of investment banking duties. Data from Choice shows that as of May 31, several securities firms including CICC, Guotou Securities, and Zheshang Securities have been consecutively penalized. The reasons for the penalties include violations in brokerage businesses, negligence in underwriting investment banking operations, lack of control over overseas subsidiaries, and employees engaging in unauthorized side jobs. Analysts believe that regulatory oversight is expanding from business compliance to corporate governance, and the control capabilities of branch offices and the management of employees' behavior are becoming weak links in securities firms' compliance construction.