Financial news
Written by: Zhang Weilun
2019-12-17 22:38
Last updated: 2019-12-17 22:38The Securities and Futures Commission of China Hongxing Asset Management (Asia) former chairman Hong Rongfeng, and former chief financial officer and company secretary Chen Jinhua, involved in whitewashing the fast-moving funds of the two, respectively, stipulated that the two should not re-enter the industry for life and three years.
The Securities and Futures Commission stated in a press release that Hong Rongfeng was the mastermind of the quick-fix fund plan, while Chen Jinhua assisted in implementing the plan.
Authorities pointed out that before taking the above-mentioned disciplinary actions against the two men, they had whitewashed their quick funds and other shortcomings in February this year to revoke the company's license. The SFC also found that during the period from June 2014 to June 2017, Ningxing Bank provided false or misleading information to the SFC in its license application and financial returns. Hong Rongfeng also failed to notify the Securities and Futures Commission of Ning Xingxing's insufficient funds and resignation of directors.
No disclosure to the SFC of insufficient funds
The Securities Regulatory Commission also pointed out that under the planning of Hong Rongfeng, a number of cheques that could not be cashed were issued through individual bank accounts, and the relevant amount was included in the annual liquidity calculation table of the Ningxing Bank, thereby decorating the company's liquidity at the end of the month. He has adopted this approach since he applied for a license from the Securities and Futures Commission in June 2014.
The SFC pointed out that if Hong Rongfeng's cheques were eliminated, Nianxing Bank would not be issued with a license to engage in regulated activities because of shortfalls in liquid funds when applying for a license and at the end of each month for a period of 3 years.
Securities Regulatory Commission