Multiple securities firms were fined in May, with regulators closely monitoring the compliance weaknesses of their branch offices.

Since May, a series of penalties have been imposed on securities firms, with many securities companies facing administrative supervision from regulatory authorities due to poor management of branch offices and inadequate performance in investment banking operations. According to Choice data, as of May 31, several securities firms including China International Capital Corporation, Guotai Junan Securities, and Zheshang Securities have been consecutively fined for violations in brokerage business, failure in underwriting responsibilities, lack of control over overseas subsidiaries, and violations of part-time work by employees. Analysts believe that regulatory measures are extending from business compliance to corporate governance, and the ability to control branch offices and manage employee behavior is becoming a weak link in securities firms' compliance construction.