China Economic Net, Beijing,July11.Recently, the website of the China Securities Regulatory Commission disclosed the China Securities Regulatory Commission's decision on administrative punishment (6responsible subjects of Netcom Securities and Liu Ping) [2022]No.28 . The law case was filed for investigation and trial, and it was decided to give a warning to Netcom Securities Co., Ltd. and impose a fine of 300,000 yuan, and to give warnings and fines tofivepartiesincluding the chairman at the time .
From 2012to2017 , Netcom Securities failed to comply withArticles 24 and 25 of the Accounting Standards for Business Enterprises No.22- Recognition and Measurement of Financial Instruments(2006Edition)for its outright repurchase transaction business., Article 32, Article 33, Article 38 and Article11 of "Accounting Standards for Business Enterprises No.23- Transfer of Financial Assets"(2006Edition)When selling bonds in an intermittent repurchase transaction, the recognition of the financial assets sold under the repurchase was terminated, and the corresponding financial liabilities were not recognized for the repurchase obligations undertaken by it, and no interest or gains and losses from changes in fair value were accrued at the end of the year.
The above behavior resulted in false amounts of financial assets, financial liabilities, gains and losses from changes in fair value, financial expenses, investment income, total profits and other subjects in the financial statements of the 2012-2017 annual reportsubmittedtotheCSRC: The total profit in2012was deducted152,500 yuan, thetotal inflated profit in2013 was347,343,600yuan, the total inflated profit in2014was256,459,800yuan, thetotal inflated profitin2015was350,000 yuan,8,600,500yuan,andthetotalinflatedprofit in2016 was2,260,076,800yuanIn 2017, the total inflated profit was3.12,5.1209 millionyuan.
The CSRC believes that the above-mentioned acts of Netcom Securities violated thesecond paragraph of Article 148 of the Securities Law of2005 : “The information submitted or provided by securities companies and their shareholders and actual controllers to the securities regulatory agency of the State Council., information must be true, accurate and complete”, which constitutesthe “securitiescompany or its shareholders, actual controllers violate the regulations, submit, provideThere are false records , misleading statements or major omissions inbusiness management information and materials ”.
Wang Yu, the then director, general manager and legal representative of Netcom Securities, was responsible for the company's daily business activities. She signed the resolution of the board of directors that reviewed and approved the2012-2017annualreport, and signed the annual report submitted to the China Securities Regulatory Commission. ; Zhang Jiajun, then deputy general manager and chief financial officer, responsible for the company's financial work, signed the annual report submitted to the China Securities Regulatory Commission.Both of them ensured in the2012to2017annual reports that the contents of the annual report are true, accurate and complete, and that there are no false records, misleading statements or major omissions, and they were the supervisors directly responsible for the above-mentioned illegal acts of Netcom Securities; Chairman Liu Pingis fully responsible for the company's work. He signed the resolution of the board of directors that reviewed and approved the2015-2017annual report, and signedthe 2015-2017annualreportsubmitted to the CSRC, and guaranteed the content of the annual report.True, accurate and complete, with no false records, misleading statements or major omissions, and was the person in charge directly responsible for the above-mentioned illegal acts of Netcom Securities; Zhang Songqi, then the compliance director, reported to the CSRC in2012,2014to2017Sign on the annual report to ensure that the content of the annual report is true, accurate and complete, and that there are no false records, misleading statements or major omissions. The then deputy general manager Jia Xiangan was in charge of the corporate bond trading business. Other persons directly responsible for the violation.
Based on the facts, nature, circumstances and social harm of the parties’ illegal acts, and in accordancewith the provisions of paragraph 1 of Article 222 of the Securities Law of2005 , the CSRC decides:
1. Give a warning to Netcom Securities Co., Ltd. and impose a fine of 300,000 yuan;
2. Give a warning to Liu Ping, Wang Yu, and Zhang Jiajun and impose a fine of 30,000 yuan respectively;
3. A warning was given to Jia Xiangan and Zhang Songqi, and a fine of 20,000 yuan was imposed respectively.
The following is the original text:
China Securities Regulatory Commission Administrative Penalty Decision ( 6responsible subjectsof Netcom Securities and Liu Ping )
[2022]No.28
Party:Netcom Securities Co., Ltd.(hereinafter referred to as Netcom Securities),domicile: No.49 ,Lively Road, Shenhe District, Shenyang City, Liaoning Province.
Liu Ping,male , borninOctober1972,wasthe chairman of Netcom Securities at the time,and hisaddress:Xicheng District, Beijing.
Wang Yu,female, borninAugust 1958,wasthe director, general manager and legal representative of Netcom Securities at that time, and heraddress:Heping District, Shenyang City, Liaoning Province.
Zhang Jiajun,male , borninOctober1964,wasthe deputy general manager and chief financial officer of Netcom Securities at the time.Address:Shenhe District, Shenyang City, Liaoning Province.
Jia Xiangan,male, borninJuly 1966,wasthe deputy general manager of Netcom Securities at the time, and hisaddress:Huanggu District, Shenyang City, Liaoning Province.
Zhang Songqi,male , borninMay1973,wasthe compliance director of Netcom Securities at the time, and hisaddress:Shenhe District, Shenyang City, Liaoning Province.
In accordancewith the relevant provisions of the "Securities Lawof the People's Republic of China" revised in2005(hereinafter referred to asthe "Securities Law" of2005),I will investigate and hear the case of Netcom Securities' violation of securities laws and regulations,and inform the parties in accordance with the law .The facts, reasons, and basis for making administrative penalties and the rights enjoyed by the parties in accordance with the law.None of the parties made statements or defense opinions,nor did they request a hearing.The investigation and trial of this case have now been concluded.
After investigation,Netcom Securities has the following illegal facts:
From 2012to2017, Netcom Securities did not complywithArticles24,25,Article 32, Article 33, Article 38 and Article11 of "Accounting Standards for Business Enterprises No.23 - TransferofFinancialAssets"(2006Edition)When selling bonds through a repurchase transaction, it derecognized the financial assets it sold and repurchased,and did not recognize the corresponding financial liabilities for its repurchase obligations,nor did it accrue interest and gains or losses from changes in fair value at the end of the year.The above behavior resulted in false amounts of financial assets, financial liabilities,gains and losses from changes in fair value, financial expenses, investment income, total profits, etc. in the financial statementsof the2012-2017annual reportsubmitted to the Council : thetotal profit was deducted in2012152,500 yuan, the total inflated profit in 2013 was 347,343,600yuan,andthetotal inflated profitin 2014was256,459,800yuanIn 2015, the total inflated profit was358,600,500 yuan, the total inflated profit in 2016 was 2,260,076,800yuan,andthetotal inflated profitin 2017was3,125,120,900yuan.
The above- mentioned illegal facts includethecompany'sannual report from2012to2017 , financial information, relevant internal systems of the company, details of relevant bond transactions, relevant bond business settlement data, relevant bond valuation data, relevant bond repurchase transactions master agreement, and relevant information., relevant contracts, relevant bank account information, bank records, records of inquiries of relevant personnel and other evidence, whichare sufficient to determine.
I will believe thattheabove-mentioned acts of Netcom Securities violated thesecond paragraph of Article 148 of the "Securities Law" of2005 , "The information submitted or provided by securities companies and their shareholders and actual controllers to the securities regulatory agency of the State Council.The provisionsofArticle 222, Paragraph 1 of the Securities Law of 2005 that “securities companies or their shareholders or actual controllers violatetheregulations,submitorprovide There are false records, misleading statements or major omissions in business management information and materials”.
Wang Yu, the then director, general manager and legal representative of Netcom Securities, wasresponsiblefor the company's daily business activities. She signed the resolution of the board of directors thatreviewed and approvedthe annual report from2012to2017 , and signedtheannual report submitted to the Commission.; Zhang Jiajun,then deputy general manager and chief financial officer,responsible for the company's financial work,signed the annual report submitted to our association.Both of them ensuredin the2012-2017annualreport that the content of the annual report is true, accurate and complete, andthat there are no false records, misleading statements or major omissions, and theyarethe supervisors directly responsible for the above-mentioned illegal acts of Netcom Securities;Chairman Liu Pingisfully responsible for the company's work. Hesigned the resolution of the board of directors thatreviewed and approvedthe2015-2017annual report, and signedthe2015-2017annualreportsubmitted to our association,and guaranteed the content of the annual report.true, accurate, complete,there are no false records, misleading statements or major omissions, and heis the person in charge directly responsible for the above-mentioned illegal acts of Netcom Securities; Zhang Songqi,then the compliance director , signed the2012,2014-2017annual reportssubmitted totheCommission,to ensure that the content of the annual report is true, accurate and complete, andthat there are no false records, misleading statements or major omissions . Jia Xiangan, the then deputy general manager, was in charge ofthecorporate bond trading business.responsible person.
Based on the facts, nature, circumstances and social harm of the parties' illegal acts, andinaccordance with the provisions of paragraph 1 of Article 222 of the Securities Lawof2005,I will decide:
1. Give a warning to Netcom Securities Co., Ltd.andimpose a fine of 300,000 yuan;
2. Give a warning to Liu Ping, Wang Yu, and Zhang Jiajun,and impose a fine of 30,000 yuan respectively;
3. A warning was given to Jia Xiangan and Zhang Songqi,and a fine of 20,000 yuan was imposed respectively.
The above-mentioned parties shall, within 15daysfrom the date of receipt of this penalty decision,transfer the fine to the China Securities Regulatory Commission. Thebank where the account is opened is the Business DepartmentofChina CITIC Bank Beijing Branch, and theaccountnumberis7111010189800000162.A copy of the payment voucher with the name of the party concerned shall be submitted to the Office of the Administrative Punishment Committee of the China Securities Regulatory Commission for the record.If the party concerned is not satisfied withthis penalty decision, he or she may apply to the China Securities Regulatory Commission for administrative reconsideration within 60 days from the date ofreceiptofthispenalty decision, or directly to the competent authority within6months fromthe date of receipt of this penalty decision .The people's court with the right to file an administrative lawsuit.During the period of reconsideration and litigation,the above decision will not be suspended.
China Securities Regulatory Commission
June13,2022__
