SWHY(SZ:000166) Nan Fang Du Shi Bao·2025-04-23 04:23Core Viewpoint - Shenwan Hongyuan Securities is facing increasing regulatory scrutiny and penalties due to violations in its investment banking operations, with a total of seven fines issued in the past six months, raising concerns about its compliance and operational integrity [2][3][7]. Group 1: Regulatory Actions - On April 18, the Shenzhen Stock Exchange announced self-regulatory measures against Shenwan Hongyuan's investment banking division and its representatives for failing to adequately supervise the IPO project of Hainuoer Environmental Industry Co., Ltd [2][3]. - Shenwan Hongyuan has received two fines within a month, with the first being a reprimand from the Shanghai Stock Exchange for inadequate performance of sponsorship duties related to Guohong Tools' IPO [3][5]. - The company has been involved in multiple securities fraud disputes since 2024, with five cases reported [8]. Group 2: Management Changes and Challenges - Wang Zhaoping, the former deputy general manager of Shenwan Hongyuan's investment banking division, was detained by regulatory authorities in September 2024, leading to increased scrutiny of the firm's operations [5][14]. - Zhang Jian, who became the general manager of Shenwan Hongyuan Securities in February 2024, has emphasized the need for strict penalties against intermediaries for non-compliance and misconduct [10][14]. - The investment banking division's revenue has significantly declined, with a 73.3% drop in equity financing revenue, resulting in a net loss of 480 million yuan for the year [11][12]. Group 3: Compliance Issues - Shenwan Hongyuan has been criticized for failing to conduct thorough due diligence on companies it sponsored, leading to issues such as financial misrepresentation and inadequate internal controls [4][7]. - The company was penalized for not fulfilling customer identity verification obligations and for engaging in transactions with unidentified clients, which raises further compliance concerns [11][12]. - The ongoing regulatory challenges and management changes have cast a shadow over Shenwan Hongyuan's reputation in the investment banking sector, particularly in its strengths in the New Third Board and Beijing Stock Exchange [11][14].