Due to the suspension of bond underwriting business for violations by Kaiyuan Securities, CITIC Securities announced the cancellation of a 6 billion yuan bond issuance.

On October 22, CITIC Securities disclosed the "Notice on the Cancellation of Issuance of Subordinated Bonds (First Phase) by CITIC Securities Co., Ltd. in 2024 for Professional Institutional Investors," stating that the company had originally planned to issue a new phase of subordinated bonds from October 23 to October 25. Due to the main underwriter Kaiyuan Securities being unable to participate in the issuance and underwriting work for this phase of bonds, it was mutually agreed upon by all parties to cancel the issuance of this phase of bonds. The subsequent issuance plan will be announced separately.

According to previous announcements, the issuance scale of the subordinated bonds (First Phase) by CITIC Securities Co., Ltd. in 2024 for professional institutional investors does not exceed 6 billion yuan (including 6 billion yuan). This phase of bonds is divided into two varieties, with the first variety having a bond term of 273 days and the second variety having a bond term of 3 years. The funds raised from this phase of bonds will be used to supplement operating capital. The main underwriters for this phase of bonds are Haitong Securities and Kaiyuan Securities.

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On October 18, the China Securities Regulatory Commission (CSRC) announced measures to suspend the bond underwriting business of Kaiyuan Securities. Due to Kaiyuan Securities' violations such as lack of due diligence in individual corporate bond projects, failure to scrutinize green bonds carefully, and lax quality control checks in multiple investment banking projects, the CSRC decided to suspend Kaiyuan Securities' bond underwriting business from October 17, 2024, to April 16, 2025.

Similarly, Hunan Dongting Resources Holding Group Co., Ltd. was also affected. Wind data shows that on October 18, the company canceled the original plan to issue two bonds totaling 1.5 billion yuan (24 Dongting 03 and 24 Dongting 04). The reason for the cancellation was also that the main underwriter Kaiyuan Securities could not participate in the bond issuance and underwriting work.

On October 22, Kaiyuan Securities publicly stated that the aforementioned administrative regulatory measures will have an impact on the company's bond underwriting business in the short term. However, the company's other production and business activities are carried out normally, risk control indicators meet regulatory requirements, the asset-liability structure and operating cash generation ability remain stable, the financial situation is good, and the relevant administrative regulatory measures will not have a significant adverse impact on the company's debt repayment ability.

It is worth mentioning that on September 29, the Shaanxi Securities Regulatory Bureau also took regulatory measures of issuing a warning letter to Kaiyuan Securities. The Shaanxi Securities Regulatory Bureau stated that some employees of the company, without the company's approval, privately redistributed the performance rewards of collaborative business, reflecting the company's incomplete compensation management mechanism and failure to effectively prevent the risk of integrity in business. In addition, the company's personnel position information reporting was inaccurate and not timely. At the same time, the Shaanxi Securities Regulatory Bureau also took inappropriate personnel measures against three people from Kaiyuan Securities.

Kaiyuan Securities was established in February 1994 with a registered capital of 4.614 billion yuan. The controlling shareholder is Shaanxi Coal and Chemical Industry Group Co., Ltd., and the company's headquarters is located in the High-Tech Zone of Xi'an City, Shaanxi Province.

In the first half of 2024, Kaiyuan Securities' investment banking business revenue decreased by 39.88% year-on-year, mainly due to the phased tightening of IPO and refinancing pace, leading to pressure on the company's investment banking business income.

Currently, Kaiyuan Securities is still "breaking through" the IPO. In March 2023, the Shenzhen Stock Exchange accepted the IPO application of Kaiyuan Securities, and in April 2023, the Shenzhen Stock Exchange issued the first round of review inquiries. On September 30, 2024, the IPO review status of Kaiyuan Securities entered a "suspension" due to the financial information recorded in the routine IPO application documents having expired and needing to be supplemented.