Sou Hu Cai Jing·2025-09-08 11:43Core Viewpoint - The article discusses the recent legal and compliance challenges faced by Guolian Minsheng Securities, particularly related to its subsidiary's involvement in a securities fraud case and ongoing regulatory scrutiny in its investment banking operations [1][3][4]. Group 1: Legal and Financial Issues - Guolian Minsheng Securities' subsidiary, Huaying Securities, is liable for nearly 14 million yuan due to its failure to diligently supervise a fraudulent financial reporting case involving Longli Biological [1]. - The company reported a significant increase in revenue and net profit for the first half of 2023, with operating income reaching 4.01 billion yuan (up 269.4%) and net profit attributable to shareholders at 1.13 billion yuan (up 1185.2%) [2]. - Despite strong financial performance post-merger, the lingering legal responsibilities from the Longli Biological case indicate that historical risks have not been fully resolved [2]. Group 2: Compliance and Regulatory Challenges - The company has faced multiple administrative regulatory measures from authorities, highlighting deficiencies in compliance management and internal controls, particularly in investment banking and bond operations [3][4]. - In June 2023, the company was ordered to rectify compliance issues, including failure to report significant matters timely and inadequate internal control over expenses [4]. - Previous violations by Minsheng Securities in investment banking have led to regulatory warnings, including issues with IPO projects and bond underwriting practices [5][6]. Group 3: ESG Rating and Industry Comparison - Guolian Minsheng Securities maintains a B rating in the latest MSCI ESG assessment, indicating it is below the industry average in areas such as environmental impact financing and human capital development [7]. - Among 42 A-share brokers, 12, including Guolian Minsheng, are rated as ESG laggards, with average revenue and net profit lower than the overall industry averages [8][9]. - The company’s average revenue for the first half of 2025 was 4.01 billion yuan, with a net profit of 1.13 billion yuan, which is below the average for the 42 listed brokers [9].