Chinese Brokerage Tries to Control Damage After Intern Leaks Confidential Information

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China Securities says it will work to mitigate impact of viral videos, which disclosed confidential information.

A viral video that leaked confidential information about China Securities Co. Ltd.’s investment banking projects was posted by an inappropriately recruited student, according to the state-backed brokerage, as it battles a public relations crisis.

The video went viral on Friday, with a relevant topic drawing more than 240 million views on microblogging site Weibo as of Monday.

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A viral video leaked confidential information about China Securities Co. Ltd.'s investment projects, filmed by an inappropriately recruited university student.
The video's release led to a public relations crisis, with more than 240 million views on Weibo and stock declines in Shanghai and Hong Kong.
China Securities dismissed the team leader responsible for recruiting the student and committed to strengthening internal controls and staff management.

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Who’s Who

China Securities Co. Ltd.: China Securities Co. Ltd. (CSC Financial Co. Ltd.) is a state-backed brokerage firm facing a public relations crisis due to a viral video that leaked confidential investment banking project details. The video, posted by a first-year university student inappropriately recruited, revealed sensitive client financial data and showcased the student's luxurious lifestyle. Following the incident, the responsible team leader was dismissed, and CSC vowed to strengthen internal controls and minimize client impact.

CSC Financial Co. Ltd.: CSC Financial Co. Ltd., also known as China Securities Co. Ltd., is a state-backed brokerage firm currently facing a public relations crisis due to a viral video leak by a university student on a summer program. The student shared confidential investment banking project details, which impacted the firm's stock prices. The recruitment was against company policies, leading to the dismissal of the responsible team leader. The firm is now focusing on minimizing client impact and improving internal controls.

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What Happened When

Friday, 2024-07-26：: The video was filmed and initially shared on Douyin by a first-year university student during a summer study program at China Securities.

Saturday, 2024-07-27：: China Securities released a statement saying the student had been recruited in violation of company policies and that the team leader responsible had been dismissed.

Monday, 2024-07-29：: The video went viral and drew more than 240 million views on Weibo. On the same day, China Securities’ Shanghai-listed shares closed down 2%, while its Hong Kong-traded shares closed down 1.2%.

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