Recently, the China Securities Regulatory Commission received the approval documents for Guosheng Jinrong’s absorption and merger of Guosheng Securities. Prior to this, Guosheng Securities received 9 penalty notices from the Jiangxi Securities Regulatory Bureau within one day, including supervision of former chairman Qiu Qiang and 8 other mid-level executives.
On August 1st, the China Securities Regulatory Commission received the “Securities Company Merger Approval” documents from Guosheng Securities Co., Ltd. Previously, Guosheng Jinrong planned to absorb the wholly owned subsidiary Guosheng Securities. If the absorption and merger take effect, all assets, liabilities, rights, and obligations of Guosheng Securities will be transferred to Guosheng Jinrong, which will then be renamed “Guosheng Securities Co., Ltd.”
On July 26th, Guosheng Securities received 9 penalty notices from the Jiangxi Securities Regulatory Bureau within one day. The notices indicated that Guosheng Securities had failed to truthfully report shareholder actual shareholding ratios and other matters before the regulatory commission took over, violating relevant regulations. It also imposed supervision on 8 mid-level executives including the former chairman, former CEO, and former vice president, and required 9 Guosheng Securities employees to make disciplinary decisions internally.
The Jiangxi Securities Regulatory Bureau stated that Qiu Qiang, as the former chairman, had the responsibility of not truthfully reporting shareholder shareholding ratios. It was decided that starting that day, Qiu Qiang would not be allowed to hold positions such as director, supervisor, senior management, or branch head of a securities company for the next 10 years.
As early as December 13, 2018, the Jiangxi Public Security Department began investigating Qiu Qiang for suspected money laundering and gambling crimes, declaring him a fugitive. In July 2021, Qiu Qiang was on the run for money laundering and gambling charges, leading to a Class B warrant issued by the Ministry of Public Security.
The wanted Qiu Qiang is the former chairman of Zhongjiang Trust and Guosheng Securities. Public records show that in 1978, Qiu Qiang served as the deputy platoon leader of the security squadron at the Air Force’s 11th Flight School; after 1997, he held positions such as Deputy Director of the Jiangxi Provincial Government Office and Deputy Director of the Jiangxi Civil Affairs Department. From June 2004 to April 2019, he served as the Party Secretary, chairman, and director of the Zhongjiang International Trust Co., Ltd., and also concurrently as the chairman of Guosheng Securities, a subsidiary.
Founded in 2002, Guosheng Securities is the only provincial state-owned securities company in Jiangxi Province, with shareholders including Zhongjiang Trust, Jiangxi-Guangdong Expressway, Jiangxi Investment Corporation, and other state-owned enterprises. In April 2016, it became a wholly-owned subsidiary of Guosheng Jinrong, with a registered capital of 4.695 billion yuan. The company is registered in Nanchang, Jiangxi, and has business headquarters in Shanghai, Shenzhen, and Beijing. In October 2022, Jiangxi state-owned enterprises acquired Guosheng Jinrong, leading Guosheng Securities back to Jiangxi Province. Guosheng Securities has 23 branch offices, 157 business outlets, and branch offices in 28 provincial-level administrative regions nationwide.
The stock market crash in China in 2015 was considered a financial coup initiated by Jiang faction members of the Chinese Communist Party, attempting to undermine Xi Jinping from the economic forefront. This directly relates to the leader of the Tomorrow Group, Xiao Jianhua.
Xiao Jianhua has close ties to several Jiang faction “princelings,” including Zeng Qinghong’s son Zeng Wei. The “Tomorrow Group” was the first organization to make money and launder money for the Jiang Zemin interest group, involving high-ranking Jiang faction families such as Jiang Zemin, Zeng Qinghong, Jia Qinglin, Liu Yunshan, Zhang Dejiang, and Li Lanqing.
From 2010 to 2012, several companies under the “Tomorrow Group” invested and controlled the Zhongjiang Trust in Jiangxi Province, with Guosheng Securities being included in the capital sphere of the “Tomorrow Group.”
On July 17, 2020, the China Banking and Regulatory Commission took over 9 core financial institutions under the “Tomorrow Group,” including Guosheng Securities.
Jiangxi is the hometown of Zeng Qinghong, the second figure in the Jiang Zemin group. Meng Jianzhu, the former Secretary of the CPC Political and Legal Affairs Commission, served as the Jiangxi Provincial Party Secretary from 2001 to 2007. Qiu Qiang was appointed as the Deputy Party Secretary and Deputy Director of the Jiangxi Civil Affairs Department from 2000 to June 2004, and was later promoted to Party Secretary and chairman of Zhongjiang Trust.
Political commentator Li Yanming told Epoch Times that the Zhongjiang Trust was established in March 2003 during Meng Jianzhu’s leadership in Jiangxi Province. Controlled by the Jiangxi Provincial Finance Department, it served as the Jiangxi faction’s financial pocket. Qiu Qiang served as the Party Secretary and chairman of the Zhongjiang Trust for over a decade, under four successive Jiangxi Provincial Party Secretaries, while also concurrently serving as the chairman of Guosheng Securities. This indicates that Qiu Qiang is an important figure in the Jiangxi faction’s financial field, with an unusually close relationship with Jiangxi faction member Meng Jianzhu.
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