Dongxing Securities receives a warning letter regarding five issues, including insufficient due diligence on multiple projects

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China Economic Net Beijing, April 6 reports: A decision released on April 2 by the Beijing Regulatory Bureau of the China Securities Regulatory Commission on taking administrative regulatory measures of issuing a warning letter to Dongxing Securities Co., Ltd. shows that, upon investigation, during the issuance of the “24 Shimen 01,” “Aviation Investment 01 Priority,” and “Aviation Investment 01 Subsequent” projects, Dongxing Securities Co., Ltd. had issues including insufficient due diligence, failure to prudently verify the accuracy of the offering documents, errors in the trustee management report and working papers, inadequate information disclosure, and lax oversight of compliance internal controls.

The above conduct violates the provisions of Article 6, paragraph 1, and Article 41 of the 《Administrative Measures for the Issuance and Trading of Corporate Bonds》(CSRC Order No. 222), Articles 7 and 83, paragraph 1, of the 《Internal Control Guidelines for Securities Firm Investment Banking Business》(CSRC Announcement [2018] No. 6), Item 1 of Article 13 of the 《Administrative Provisions for Asset Securitization Business of Securities Firms and Their Subsidiaries and Fund Management Companies》(CSRC Announcement [2014] No. 49), Article 6, Article 8, Item 1 of the 《Guidelines for Due Diligence Work in Asset Securitization Business of Securities Firms and Their Subsidiaries and Fund Management Companies》(CSRC Announcement [2014] No. 49), and Article 2, paragraph 1, and Article 10, Item 1 of the 《Guidelines for Information Disclosure in Asset Securitization Business of Securities Firms and Their Subsidiaries and Fund Management Companies》(CSRC Announcement [2014] No. 49).

Pursuant to Article 69 of the 《Administrative Measures for the Issuance and Trading of Corporate Bonds》(CSRC Order No. 222) and Article 46 of the 《Administrative Provisions for Asset Securitization Business of Securities Firms and Their Subsidiaries and Fund Management Companies》(CSRC Announcement [2014] No. 49), the Beijing Regulatory Bureau has decided to take administrative regulatory measures of issuing a warning letter to Dongxing Securities.

The original text is as follows:

Decision on Taking Administrative Regulatory Measures of Issuing a Warning Letter Against Dongxing Securities Co., Ltd.

Dongxing Securities Co., Ltd.:

Upon investigation, in the course of your company’s issuance of the “24 Shimen 01,” “Aviation Investment 01 Priority,” and “Aviation Investment 01 Subsequent” project offerings, there were issues including insufficient due diligence, failure to prudently verify the accuracy of the offering documents, erroneous information in the trustee management report and working papers, inadequate information disclosure, and insufficient strictness in guarding compliance internal controls, among other problems.

The above conduct violates the provisions of Article 6, paragraph 1, and Article 41 of the 《Administrative Measures for the Issuance and Trading of Corporate Bonds》(CSRC Order No. 222), Articles 7 and 83, paragraph 1, of the 《Internal Control Guidelines for Securities Firm Investment Banking Business》(CSRC Announcement [2018] No. 6), Item 1 of Article 13 of the 《Administrative Provisions for Asset Securitization Business of Securities Firms and Their Subsidiaries and Fund Management Companies》(CSRC Announcement [2014] No. 49), Article 6, and Article 8, Item 1 of the 《Guidelines for Due Diligence Work in Asset Securitization Business of Securities Firms and Their Subsidiaries and Fund Management Companies》(CSRC Announcement [2014] No. 49), and Article 2, paragraph 1, and Article 10, Item 1 of the 《Guidelines for Information Disclosure in Asset Securitization Business of Securities Firms and Their Subsidiaries and Fund Management Companies》(CSRC Announcement [2014] No. 49).

Pursuant to Article 69 of the 《Administrative Measures for the Issuance and Trading of Corporate Bonds》(CSRC Order No. 222) and Article 46 of the 《Administrative Provisions for Asset Securitization Business of Securities Firms and Their Subsidiaries and Fund Management Companies》(CSRC Announcement [2014] No. 49), this bureau has decided to take administrative regulatory measures of issuing a warning letter against your company. Your company shall draw lessons, conduct a serious search for the problems and make rectifications, establish and improve internal control systems, and effectively enhance the level of compliance management.

If you are dissatisfied with these supervisory and regulatory measures, you may, within 60 days from the date of receiving this decision, file an application for administrative reconsideration with the China Securities Regulatory Commission, or you may, within 6 months from the date of receiving this decision, bring a lawsuit in a people’s court with jurisdiction. During the period of reconsideration and litigation, the above supervisory and regulatory measures shall not be suspended.

Beijing Regulatory Bureau of the China Securities Regulatory Commission

April 2, 2026

(Editor: Hua Qingjian)

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