FINANCE

Former Top Haitong Securities Exec Probed, Sources Say

By Wang Juanjuan, Quan Yue and Zhang Yukun

Published: Aug. 2, 2024 8:43 p.m. GMT+8

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Jiang Chengjun

A former senior executive at Haitong Securities Co. Ltd. (600837.SH) is being probed by authorities for reasons likely due to wrongdoing related to projects sponsored by the investment bank, sources with knowledge of the matter told Caixin.

Haitong announced Wednesday that Jiang Chengjun had resigned as a deputy general manager “due to personal reasons.”

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Jiang Chengjun, former deputy general manager at Haitong Securities, is being investigated for potential wrongdoing related to investment bank-sponsored projects.
Two of Jiang’s subordinates, Sun Wei and Sun Yingchen, are assisting in the investigation; Jiang had received a warning for lapses in due diligence on IPOs.
Haitong faces compliance issues and regulatory penalties; its net profit potentially declined by 69-76% year-on-year in the first half due to market volatility and decreased equity financing.

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Who’s Who

Haitong Securities Co. Ltd.: Haitong Securities Co. Ltd. (600837.SH) is a major investment bank in China facing increased regulatory scrutiny. It has been plagued by compliance issues and has seen its net profit decline significantly due to market volatility and reduced equity financing. The firm has faced numerous regulatory penalties, with recent investigations into senior executives, including former deputy general manager Jiang Chengjun, due to alleged misconduct in investment banking projects.

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What Happened When

In the 1990s：: Jiang worked at two companies in Xiamen.

In 2000：: Jiang joined Haitong’s investment banking department.

In 2004：: Jiang became one of the first few hundred licensed IPO sponsor representatives.

In 2017：: Jiang was appointed an assistant to the general manager.

In 2023：: Jiang became a deputy general manager overseeing investment banking.

In 2024-01：: Jiang, along with two other Haitong employees, received a warning from the Shanghai Stock Exchange for misdeeds including lapses in due diligence for Haitong-sponsored IPOs and failure to identify major risks in projects.