Caitong Securities' Wuxi Yongle Road branch employee Chen Jiong has recently been penalized by regulators for misconduct.
The regulatory decision document stated that Chen violated multiple rules during his tenure, including disseminating misleading information in WeChat groups, failing to adequately disclose securities trading risks, and operating client accounts without authorization. These actions breached the "Compliance Management Measures for Securities Companies and Securities Investment Fund Management Companies" and the "Interim Provisions on Securities Broker Management." The Jiangsu Securities Regulatory Bureau issued a warning letter to Chen and recorded the violation in the securities industry’s integrity archive.
This is not the first regulatory action against Caitong Securities this year. On November 7, the Zhejiang Securities Regulatory Bureau ordered the firm to rectify issues in its over-the-counter derivatives business, citing inadequate underlying asset management, failure to dynamically adjust linked assets, incomplete investor qualification reviews, and weak controls over system access and passwords. Pei Gencai, a senior executive overseeing the business, also received a warning.
In September, Caitong Securities faced another warning from Zhejiang regulators due to compliance deficiencies in its overseas subsidiary management. Earlier in February, the firm was fined 1.95 million yuan by the People's Bank of China’s Zhejiang branch for failing to verify client identities and report large or suspicious transactions—marking the first penalty under the newly revised Anti-Money Laundering Law, effective January 1, 2025. Two responsible individuals were also fined.
Headquartered in Hangzhou, Caitong Securities was founded in 1993 as Zhejiang Fiscal Securities and listed on the Shanghai Stock Exchange in 2017. It is the only provincial-level securities firm in Zhejiang. In the first three quarters of 2025, its revenue and net profit rose 13.99% and 38.42% year-on-year, respectively. Notably, its brokerage business—where the penalized employee worked—saw a 66% surge in net revenue, with Q3 alone jumping 119%.
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