Employees using others' accounts to trade stocks! Bohai Securities was warned by regulators for inadequate personnel management.

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Bohai Securities Co., Ltd. (hereinafter “Bohai Securities”) was named by the Tianjin CSRC for inadequate personnel management.

On April 3, the Tianjin CSRC issued the Decision on Taking Measures of Issuing a Written Letter of Warning to Bohai Securities Co., Ltd., which stated that, after investigation, Bohai Securities has two main issues.

First, during their tenure, certain employees had engaged in the act of borrowing other people’s securities accounts to trade stocks.

Second, certain employees had concurrently served in both the proprietary trading department and the investment banking department.

The Tianjin CSRC pointed out that the above issues reflect that Bohai Securities has inadequate personnel management and violated relevant regulations. The Tianjin CSRC decided to take supervisory management measures against Bohai Securities by issuing a written letter of warning, and to record it in the integrity file of the securities and futures market.

“Bohai Securities should take this as a warning, earnestly identify and rectify the problems, strengthen the management of practitioners, effectively improve personnel management standards, prevent such issues from happening again, and submit a written rectification report to our bureau within 30 days from the date of receipt of this decision letter,” said the Tianjin CSRC.

Since last year, Bohai Securities and its branches, along with its employees, have repeatedly received regulatory penalty orders.

In January of this year, the Tianjin CSRC found that during his tenure, employee Mr. Feng of Bohai Securities had engaged in the act of borrowing other people’s securities accounts to trade stocks; the employee was subject to measures of issuing a written letter of warning.

In January 2025, due to failure to exercise due diligence in verifying the source of funds and the actual controller during the financial adviser due diligence work for the relevant projects, which led to the due diligence opinions containing false records, the CSRC decided to order Bohai Securities to make corrections, confiscate more than RMB 566,000 in business revenue, and impose a fine of RMB 1.698 million; Zhang Rui, the then senior vice president of the investment banking department of Bohai Securities, and Zhang Ruisheng, the then project manager of the investment banking department of Bohai Securities, were both given warning penalties and fined RMB 80,000 each.

In August 2025, the Guangdong CSRC found that Bohai Securities’ Guangdong branch had issues such as failing to report major events in a timely manner and illegal operations of clients’ accounts by heads of its subordinate business departments. It took measures requiring rectification.

In addition, the Bohai Securities Beijing Guangshun North Dajie Securities Business Department was issued written letters of warning twice in February and October 2025 due to problems including failing to detect employees’ unauthorized sale of private placement products in a timely manner and some employees instructing third parties to solicit customers.

It is worth noting that Bohai Securities is not the only case this year where regulatory investigations found that employees borrowed accounts to trade stocks.

In January, an employee at the Datong Xinjian Nanlu Securities Business Department of Datong Securities engaged in securities investment by violating regulations and borrowing clients’ securities accounts; the Shanxi CSRC took measures of issuing a written letter of warning.

According to information on its official website, Bohai Securities is the only comprehensive securities firm registered in Tianjin. Its predecessor was Bohai Securities Co., Ltd. It was established as a large-scale securities firm on the basis of the merger and restructuring of securities business departments from four trust institutions, namely Tianjin Securities Co., Ltd., Tianjin International Trust & Investment Co., Ltd., Tianjin Trust & Investment Co., Ltd., and Tianjin Beifang International Trust & Investment Co., Ltd., and Tianjin Binhai Trust & Investment Co., Ltd.; it officially opened on June 8, 2001.

The information shows that Bohai Securities initiated its IPO in 2016. The latest update to its filing materials was on December 31, 2024, and the current review status is “questions have been raised.”

In terms of performance, Bohai Securities’ 2025 bond interim report shows that in the first half of 2025, the company achieved operating revenue of RMB 947 million, compared with RMB 1.198 billion in the same period last year, a year-on-year decrease of 20.95%; net profit attributable to shareholders was RMB 251 million, down 34.6% year on year.

Among its principal businesses, operating revenue from securities proprietary trading was RMB 181 million, down from RMB 635 million in the same period last year. The main reason is that due to fluctuations in the capital markets, investment income decreased. Operating revenue from securities brokerage business was RMB 262 million, up from RMB 191 million in the same period last year. The main reason is that in the first half of 2025, the market’s trading volume for stocks and funds rose compared with the same period last year.

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Editor: Yang Ci