On December 11, 2025, the Shanghai No.1 Intermediate People’s Court heard a high-profile labor dispute case involving Tianfeng Securities Co., Ltd. (601162) and its former vice president, Guo Shengbei. The lawsuit, filed by Tianfeng’s Shanghai proprietary trading branch, marks another challenge for the brokerage amid regulatory scrutiny.
The case unfolds as Tianfeng Securities grapples with a China Securities Regulatory Commission (CSRC) investigation launched on November 28, 2025, over alleged disclosure violations and illegal financing. The dual crises—regulatory and legal—have spotlighted the firm’s operational and governance challenges.
Guo Shengbei, a seasoned investment professional with stints at Morgan Stanley, Deutsche Bank, and CITIC Securities, joined Tianfeng in December 2020 as vice president and head of its Shanghai proprietary trading unit. His tenure ended abruptly in July 2022 when he resigned, days before Tianfeng warned of an 85% plunge in H1 2022 net profit, citing proprietary trading losses.
Market speculation linked Guo’s departure to a reported RMB675 million loss on real estate bond holdings by Tianfeng’s fixed-income team. An internal "Accountability Decision" document revealed Guo faced a 40% pay cut (from RMB250,000 to RMB150,000 monthly), clawbacks of deferred bonuses, and potential liability claims.
In August 2023, Guo publicly accused Tianfeng of scapegoating him, alleging the firm’s incentive structure fueled excessive risk-taking in credit bonds. He claimed to have advocated reducing exposure but was overruled. Guo also reported the matter to regulators and pursued legal action. His 2021 compensation of RMB4.77 million plummeted to RMB771,100 in H1 2022.
Meanwhile, Tianfeng’s regulatory woes trace back to historical issues tied to former major shareholder "Modern Group," which had misused company funds. Though repaid by end-2022, the violations triggered CSRC scrutiny. Media reports suggest ex-executive Zhai Chenxi, who earned RMB9.99 million in 2021, is assisting investigations related to former chairman Yu Lei’s case.
Following Modern Group’s 2022 debt crisis, state-backed Hongtai Group became Tianfeng’s controlling shareholder, ushering in management changes. As Guo’s lawsuit progresses and probes deepen, markets watch whether Tianfeng can resolve legacy risks and rebuild compliance under new ownership.
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