FINANCE

Tianfeng Securities Fined for Funneling Over $1.3 Billion to Former Shareholder

Published: Feb. 14, 2026 3:42 a.m. GMT+8

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The regulator has proposed a combined 25 million yuan fine for both Tianfeng Securities and Dangdai Group. Photo: VCG

Tianfeng Securities Co. Ltd. has been slapped with the maximum fine for illegally channeling more than 9.3 billion yuan ($1.3 billion) to its former controlling shareholder, the now-bankrupt Wuhan Dangdai Science & Technology Industries Co. Ltd., regulators said Friday.

Between 2020 and 2022, the Shanghai-listed brokerage used its own funds and client assets to provide financing to Dangdai, while failing to disclose the related-party transactions, according to a preliminary administrative penalty notice issued by the Hubei bureau of the China Securities Regulatory Commission (CSRC).

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Tianfeng Securities was fined 25 million yuan for illegally transferring over 9.3 billion yuan to former parent Wuhan Dangdai between 2020–2022, with major omissions in disclosure.
Nine individuals, including ex-chairman Yu Lei and Dangdai’s shareholder Ai Luming, face a combined 34.8 million yuan in penalties and lifetime market bans.
Most debt was recovered; Tianfeng’s private fund business faces suspension, and further criminal charges and investigations are ongoing.

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Who’s Who

Tianfeng Securities Co. Ltd.: Tianfeng Securities Co. Ltd. was fined 25 million yuan for illegally channeling over 9.3 billion yuan to its former controlling shareholder, Wuhan Dangdai Science & Technology Industries Co. Ltd., between 2020 and 2022. The brokerage used its own funds and client assets for financing and failed to disclose these related-party transactions, leading to a regulatory suspension of some business operations.

Wuhan Dangdai Science & Technology Industries Co. Ltd.: Wuhan Dangdai Science & Technology Industries Co. Ltd. was Tianfeng Securities' bankrupt controlling shareholder. It illegally received over 9.3 billion yuan from Tianfeng between 2020 and 2022, leading to significant fines and its controlling shareholder, Ai Luming, receiving a lifetime market ban. The company filed for bankruptcy restructuring in September 2024.

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