China Probes Tianfeng Securities Over Disclosure, Financing
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China’s securities regulator has opened an investigation into Tianfeng Securities Co. Ltd. (601162.SH) for alleged violations involving information disclosure and the provision of financing.
The Shanghai-listed brokerage announced Friday that it had been notified of the investigation by the China Securities Regulatory Commission (CSRC).
The move comes shortly after Caixin reported that Zhai Chenxi, a former executive vice president at the firm, was taken away by authorities to assist with an investigation. Her case is linked to Yu Lei, a former chairman of Tianfeng who was placed under investigation in February, sources with knowledge of the matter said.
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- China’s CSRC is investigating Tianfeng Securities for alleged information disclosure and financing violations.
- The probe is linked to past fund misappropriation by former major shareholder Dangdai Group, which collapsed in 2022.
- Analysts warn the investigation could hurt Tianfeng’s liquidity and financing if it leads to regulatory penalties and a credit downgrade.
- Tianfeng Securities Co. Ltd.
- Tianfeng Securities Co. Ltd., a Shanghai-listed brokerage, is currently under investigation by the China Securities Regulatory Commission (CSRC) for alleged violations related to information disclosure and financing. This probe follows the investigation of former executives, linking to the misappropriation of funds by its former major shareholder, Dangdai Group. The investigation poses a risk to Tianfeng's liquidity and financing capacity.
- Dangdai Group
- Dangdai Group was once Hubei province's largest private enterprise and a former major shareholder of Tianfeng Securities. It collapsed under a debt crisis in 2022 and entered bankruptcy restructuring last year. Dangdai Group, along with its affiliates, misappropriated approximately 1.9 billion yuan ($265 million) from Tianfeng Securities between 2020 and 2022.
- Hubei Hongtai Group Co. Ltd.
- Hubei Hongtai Group Co. Ltd. is the current state-backed controlling shareholder of Tianfeng Securities Co. Ltd. During Dangdai Group's bankruptcy restructuring, Hubei Hongtai Group claimed creditors' rights of approximately 5.3 billion yuan, according to sources familiar with the matter.
- 2022：
- Dangdai Group collapsed under a debt crisis.
- By the end of 2022：
- Dangdai and its affiliates repaid the principal and accumulated interest for the 1.9 billion yuan fund occupation to Tianfeng Securities.
- April 2023：
- Tianfeng Securities disclosed that Dangdai and its affiliates had occupied about 1.9 billion yuan of its funds between 2020 and 2022.
- 2024：
- Dangdai Group entered bankruptcy restructuring.
- February 2025：
- Yu Lei, former chairman of Tianfeng Securities, was placed under investigation.
- Before 2025-11-29：
- Zhai Chenxi, former executive vice president at Tianfeng Securities, was taken away by authorities to assist with an investigation.
- 2025-11-29：
- Tianfeng Securities announced it was notified by the CSRC that the company is under investigation for alleged violations involving information disclosure and the provision of financing.
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