On September 20, 2026, a staff member of Zhongtai Securities Co., Ltd. (Zhongtai Securities) privately executed securities transactions for clients, resulting in a loss of 92.06 million Chinese Yuan (RMB). The employee was recently fined 500,000 RMB as a consequence.
According to a report by The Paper on September 19th, the Hunan Securities Regulatory Bureau of the Communist Party of China announced administrative penalties against Yang Wenming, an employee of Zhongtai Securities, for his unauthorized trading activities on behalf of a client.
The penalties revealed that between October 10, 2017, and November 30, 2017, April 24, 2020, and January 14, 2021, and November 3, 2022, and January 4, 2024, Yang Wenming conducted transactions totaling 191 million Yuan on behalf of Tan, resulting in a recorded loss of 1.8292 million Yuan. Additionally, between November 10, 2017, and March 6, 2024, Yang Wenming operated Zhang’s credit securities account on behalf of Tan, conducting transactions totaling 2.338 billion Yuan and incurring an actual loss of 90.2331 million Yuan.
The total transactions across both accounts amounted to 2.53 billion Yuan, with a combined recorded loss of 92.0622 million Yuan.
Yang Wenming received a warning from the Hunan Securities Regulatory Bureau and was fined 500,000 Yuan.
Prior to this incident, local securities regulatory bureaus had issued warning letters and sanctions to Zhongtai Securities and related personnel on multiple occasions. In August, the Hunan Securities Regulatory Bureau imposed regulatory measures requiring the correction of practices and a three-month suspension of new securities accounts for the Hunan branch of Zhongtai Securities and its various business departments, along with disciplinary actions against relevant individuals. In May, due to weak management of branch offices and staff, resulting in a failure to effectively prevent ethical and operational risks among employees, the Qingdao Securities Regulatory Bureau issued a warning letter to Zhongtai Securities and related branch offices, documenting the securities and futures market integrity file.
Public records indicate that Zhongtai Securities Co., Ltd. (Zhongtai Securities) was originally named Qilu Securities Co., Ltd., established on May 15, 2001. It is a large comprehensive listed securities firm in China, controlling Zhongtai Futures, Zhongtai Capital, Zhongtai Financial International, Zhongtai Asset Management, Zhongtai Venture Capital, and Qilu Equity Trading Center, operating as a comprehensive securities holding group integrating securities, futures, funds, and other businesses. Its main operations include securities brokerage, underwriting and sponsorship, investment advisory, proprietary trading, financial consulting, margin trading, fund distribution, fund custody, stock options market-making, among others. Its office is located in the Shizhong District of Jinan City, Shandong Province.