Rare! A well-known brokerage received two fines in one day, and the former chairman was banned from the market

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Reporter | Li Shan

Editor | Zhang Yingguo

Tianfeng Securities (Rights Protection) (601162) has once again faced regulatory crackdown. On the evening of March 13, 2026, the company announced that it had received the “Administrative Penalty Decision” and “Administrative Supervision Measures Decision” issued by the Hubei Regulatory Bureau of the China Securities Regulatory Commission, as well as the “Administrative Penalty Notice” issued by the Fujian Securities Regulatory Bureau.

The “55 Billion Yuan Illegal Occupation” case has been settled, and the “Yongan Forestry Shareholding Disclosure Delay” has surfaced—intensive regulatory actions keep this brokerage firm’s compliance and internal control issues in the spotlight. Shareholders who suffered losses now have conditions to claim compensation: affected investors can register their claims on Sina’s investor rights protection platform.

Settlement of the 5.5 Billion Yuan Illegal Occupation Case

Chairman and Vice President banned for life

According to Tianfeng Securities’ announcement, the Hubei Securities Regulatory Bureau’s “Administrative Penalty Decision” found that between 2020 and 2022, the company illegally provided financing to the former largest shareholder, Contemporary Group, and failed to disclose related-party transactions with Contemporary Group as required. The regulatory authorities verified that the company provided a total of 5.502 billion yuan in financing support to shareholders through various means, illegally financed 500 million yuan through related-party leasing to other shareholders, and provided 300 million yuan to related parties of another shareholder. These major related-party transactions and non-operational capital occupation were not disclosed in the annual reports of those years, constituting significant information disclosure omissions.

In response to these violations, regulators imposed penalties: Tianfeng Securities was warned and fined 15 million yuan; several senior executives, including then-Chairman Yu Lei and Vice President and CFO Xu Xin, received warnings and fines ranging from 500,000 to 6 million yuan. Yu Lei and Xu Xin were also subject to lifetime market bans.

This penalty is consistent with the “Administrative Penalty Notice” received on February 13, marking the full completion of the regulatory process.

Media reports indicate that this penalty targets historical issues from Tianfeng Securities’ former private shareholder period, representing a comprehensive cleanup of violations from 2020 to 2022. Responsibility for each individual involved is clearly identified, and penalties are directly related to participation in violations and signing relevant documents.

“Yongan Forestry Case” Receives Notice

President also receives penalty

On the same day, Tianfeng Securities announced that due to suspected illegal disclosure of information regarding the shareholding change of Fujian Yongan Forestry, it received the “Administrative Penalty Notice” from the Fujian Regulatory Bureau of the China Securities Regulatory Commission. The notice shows that on December 31, 2021, Tianfeng Securities obtained a 12.29% stake in Yongan Forestry through judicial ruling, but only sent a “Notice Letter” to Yongan Forestry on February 23, 2022, failing to fulfill disclosure obligations in a timely manner. The Fujian Securities Regulatory Bureau plans to order corrections, issue a warning, and impose a fine of 4 million yuan on Tianfeng Securities; also, President Wang Linjing received a warning and a fine of 1.4 million yuan.

The company stated that this is a “Penalty Notice,” and the final result will be based on the “Administrative Penalty Decision” issued by the Fujian Regulatory Bureau. The company does not face other risk warnings or major illegalities leading to mandatory delisting.

Substantial Restrictions on Business Operations

Internal control issues ordered for rectification

In addition to administrative penalties, Tianfeng Securities and its subsidiaries received decisions on administrative regulatory measures for multiple internal control and compliance issues. The decision from the Hubei Securities Regulatory Bureau shows that the company had employees promoting non-company-sold financial products, engaged in illegal cooperation with Wuhan Contemporary Tianxin Wealth Management Co., Ltd., sold private equity funds improperly, made unwise business decisions, lacked effective control over subsidiaries and branches, and failed to adequately manage risks. Furthermore, the company also faced issues such as inaccurate performance forecast disclosures in 2022, irregularities in research report production and release, non-standard practices in investment banking projects, and incomplete organizational restructuring related to private fund business.

Regarding these multiple penalties, Tianfeng Securities repeatedly stated that it sincerely accepts regulatory handling, reflects deeply, and is actively rectifying. Currently, operations are normal, and the penalties do not involve other risk warnings or major illegalities leading to mandatory delisting. Reports indicate that since 2023, after the state-owned enterprise Hongtai Group became the sole owner of Hubei Province’s financial services state-owned enterprise, Tianfeng Securities has been simultaneously resolving historical issues and building future capabilities, accelerating risk clearance. An insider said that from 2023 onward, the company has moved beyond these historical issues, focusing fully on compliance and business development.

Loss-making investors’ claims window opens

Public information shows that as of September 30, 2025, Tianfeng Securities had over 500,000 shareholder accounts.

With the formal implementation of the administrative penalty decisions, investors who suffered losses due to Tianfeng Securities’ disclosure violations now meet the conditions for claims. According to relevant laws and regulations, listed companies that cause investor rights to be harmed through false statements are liable for civil compensation.

Based on the content of multiple penalty decisions received by the company, investors who meet the following criteria can pay attention to their claims: First, those who bought before November 28, 2025 (inclusive) and sold after November 29, 2025, or still hold with losses; second, those who bought before February 13, 2026 (inclusive) and sold after February 14, 2026, or still hold with losses.

In the context of ongoing legal progress in the capital market and the industry entering a phase of strict regulation, active rights protection by investors is not only a way to safeguard their interests but also an important step to promote standardized corporate operations and purify the market environment.