Tianfeng Securities received the "Notification of Case Filing" from the China Securities Regulatory Commission on November 28, 2025, and the "Advance Notice of Administrative Penalty" (E Penalty No. 7) issued by the Hubei Supervision Bureau of the China Securities Regulatory Commission on February 13, 2026.
It was found that Tianfeng Securities failed to fulfill its information disclosure obligations as required and there were major omissions in the annual report.
(1) Tianfeng Securities failed to disclose related transactions with Contemporary Group as required, and there were major omissions in the annual report from 2020 to 2022
1. Tianfeng Securities failed to disclose the occupation of non-operating funds as required, and there were major omissions in the 2020 annual report and the 2021 annual report.
Tianfeng Securities provides financing to Contemporary Group through its subsidiaries Tianfeng Tianrui and Tianrui Property, resulting in the occupation of non-operating funds by related parties. In 2020 and 2021, the amount of non-operating funds occupied by Contemporary Group from Tianfeng Securities was 1.475 billion yuan and 695 million yuan respectively, accounting for 12.17% of the latest audited net assets of Tianfeng Securities. 3.98%; as of the end of 2020 and 2021, the balance occupied by Contemporary Group was 1.208 billion yuan and 1.903 billion yuan respectively, accounting for 6.92% and 7.58% of the net assets recorded in the current report of Tianfeng Securities. As of October 8, 2022, Tianfeng Securities has recovered the principal occupied by Contemporary Group and the interest during the occupation period.
2. Tianfeng Securities failed to disclose other types of related transactions with Contemporary Group as required, and there were major omissions in the annual report from 2020 to 2022.
In 2020, Tianfeng Securities purchased 2.455 billion yuan of Moderna bonds through designated investment relief projects and private equity fund products, providing a total of 2.583 billion yuan in financing for Moderna Group. It invested 238 million yuan in external investments through Wuhan Tianying Investment Group Co., Ltd., a subsidiary of Moderna Group, forming a related transaction between Tianfeng Securities and Moderna Group.
In 2021, Tianfeng Securities purchased 500 million yuan of contemporary bonds through private equity products to provide financing to the Contemporary Group; by paying 1.3 billion yuan to transfer the debt of the Contemporary Group to a company related to Xue, a related transaction between Tianfeng Securities and the Contemporary Group was formed.
In 2022, Tianfeng Securities provided 249 million yuan in financing to Contemporary Group through reverse repurchase of its own department, forming a related transaction between Tianfeng Securities and Contemporary Group.
(2) Tianfeng Securities failed to disclose related transactions with Optics Valley Financial Leasing as required, and there were major omissions in the 2021 annual report
In 2021, Tianfeng Securities participated in the capital increase and share expansion of Optics Valley Financial Leasing and transferred 500 million yuan to Optics Valley Financial Leasing in the name of equity interest payment, forming a related transaction between Tianfeng Securities and Optics Valley Financial Leasing. Tianfeng Securities should disclose the above-mentioned related-party transactions in a timely manner and in regular reports, but it did not disclose it as required, nor did it disclose it in the annual report from 2020 to 2022. Tianfeng Securities’ annual report from 2020 to 2022 contained major omissions.
In addition, from 2020 to 2023, Tianfeng Securities issued 13 bonds. The relevant bonds reference the annual reports from 2020 to 2022 in the prospectus or periodic reports on continuous information disclosure. The above-mentioned illegal facts are proved by evidence such as Tianfeng Securities announcements, situation descriptions, contract documents, bank statements, and party inquiry records.
Based on the facts, nature, circumstances and degree of social harm of the parties’ illegal acts, our Bureau decides:
1. Tianfeng Securities Co., Ltd.’s provision of financing to shareholders or shareholders’ affiliates shall be based on the provisions of Article 205 of the 2019 Securities Law:
1. Give Tianfeng Securities Co., Ltd. a warning and impose a fine of 5 million yuan; 2. Give Yu Lei a warning and impose a fine of 1 million yuan;
3. Give Xu Xin a warning and impose a fine of 1 million yuan;
4. Give Feng Lin a warning and impose a fine of 500,000 yuan;
5. Give Zhai Chenxi a warning and impose a fine of 300,000 yuan.
2. Regarding Tianfeng Securities Co., Ltd.’s illegal information disclosure, according to the provisions of paragraph 2 of Article 197 of the 2019 Securities Law:
1. Give Tianfeng Securities Co., Ltd. a warning and impose a fine of 10 million yuan; 2. Give Yu Lei a warning and impose a fine of 5 million yuan;
3. Give Xu Xin a warning and impose a fine of 5 million yuan;
4. Give Wang Linjing a warning and impose a fine of 3 million yuan;
5. Give Zhai Chenxi a warning and impose a fine of 3 million yuan;
6. Give Feng Lin a warning and impose a fine of 2.5 million yuan.
Based on the above two illegal facts:
1. Give Tianfeng Securities Co., Ltd. a warning and impose a fine of 15 million yuan;
2. Warn Yu Lei (then chairman of Tianfeng Securities) and impose a fine of 6 million yuan;
3. Warn Xu Xin (then vice president and financial director of Tianfeng Securities) and impose a fine of 6 million yuan;
4. Warn Zhai Chenxi (then vice president and executive vice president of Tianfeng Securities) and impose a fine of 3.3 million yuan;
5. Warn Wang Linjing (then director and president of Tianfeng Securities) and impose a fine of 3 million yuan;
6. Give Feng Lin (then executive vice president of Tianfeng Securities) a warning and a fine of 3 million yuan.
In view of the seriousness of the illegal behavior of the parties involved, Yu Lei and Xu Xin, our bureau decided to adopt lifelong market ban measures against Yu Lei and Xu Xin.
