Caitong Securities Was Previously Penalized for Over-the-Counter Derivatives Business, with Supervising Executive Pei Gencai Also Named

Operator Financial News

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According to previous disclosures by Zhejiang Securities Regulatory Bureau, Caitong Securities’ over-the-counter derivatives business has issues such as “inadequate underlying asset management mechanisms, failure to implement timely and dynamic adjustments to linked assets,” “insufficient annual review of investor qualifications,” and “ineffective management of business system permissions and passwords.” These do not comply with relevant regulations and measures, and supervisory actions requiring correction have been taken.

Additionally, Caitong Securities has been asked to thoroughly rectify these issues, implement effective measures to improve internal control and compliance management of the over-the-counter derivatives business, and submit a written rectification report to Zhejiang Securities Regulatory Bureau within 30 days of receiving this decision.

Caitong Securities has not responded publicly to this penalty in its official announcements. The company has also not disclosed its 2025 annual report. However, Zhejiang Securities Regulatory Bureau, at the same time as issuing this penalty notice, also named a senior executive of the company.

Pei Gencai, a senior manager at Caitong Securities responsible for related business, is held accountable for the violations and has been issued a warning letter. His information has been recorded in the securities and futures market integrity archive.

It is understood that Pei Gencai is currently the Assistant General Manager of Caitong Securities. Born in February 1966, he has worked for Zhejiang Securities, Founder Securities, and Huaxi Securities for many years. In June 2010, he joined Caitong Securities and has served as Assistant General Manager and General Manager of the Marketing Service Center, Assistant General Manager and General Manager of the Brokerage Business Headquarters, Chairman of Caitong Innovation, and Director of the Research Institute.

The over-the-counter derivatives business is not a core business for securities firms. Being named and penalized will not significantly impact Caitong Securities.

(Editors: Fu Zhen)

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