Core Viewpoint - The recent involvement of Guoyuan Securities and its representative Sun Bin in a criminal case related to its client, Siert, has exposed significant risks in the investment banking sector, particularly regarding the deep ties between sponsors and clients, and has highlighted ongoing challenges faced by Guoyuan Securities in its investment banking operations [2][4]. Group 1: Incident Overview - The case against Siert's former executives for embezzlement and bribery has led to the prosecution of Guoyuan Securities' sponsor representative Sun Bin, who is implicated in non-state employee bribery and embezzlement [5][6]. - Sun Bin has been with Guoyuan Securities since 2008 and has a long-standing relationship with Siert, having participated in multiple financing projects since Siert's IPO [6][8]. Group 2: Performance Issues - Guoyuan Securities has faced a high IPO project withdrawal rate of 63.16%, with 12 out of 19 projects withdrawn between 2023 and 2024, raising concerns about the firm's professional capabilities and project selection standards [9][12]. - The firm has experienced significant financial decline, with investment banking revenue dropping from 766.09 million yuan in 2022 to 201.44 million yuan in 2023 and 163.33 million yuan in 2024, resulting in consecutive losses of 89.48 million yuan and 82.39 million yuan in those years [14][15]. Group 3: Regulatory Scrutiny - Regulatory bodies have criticized Guoyuan Securities for its inadequate due diligence and internal controls, leading to disciplinary actions against its representatives involved in specific projects [12][13]. - The firm received warnings from the Anhui Securities Regulatory Bureau regarding insufficient internal system execution and due diligence in its investment banking operations [13]. Group 4: Response and Future Outlook - In response to the ongoing challenges, Guoyuan Securities has announced a four-part rectification plan aimed at improving compliance, enhancing internal controls, and optimizing quality management processes [16]. - The effectiveness of these measures in restoring the firm's reputation and achieving its goal of becoming a competitive investment bank remains to be seen [16].