Tianfeng Securities Hit with Multiple Penalties: Total Fines Exceed 40 Million

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2026.03.13

Word count: 1782, estimated reading time: about 3 minutes

Author | First Financial Zhou Nan

After receiving two fines and being suspended from selling private equity financial products for two years, Tianfeng Securities faces regulatory penalties.

The company disclosed on the evening of March 13 that, regarding Tianfeng Securities’ alleged illegal financing and information disclosure violations for Wuhan Contemporary Technology Industry Group Co., Ltd. (hereinafter “Contemporary Group”), the Hubei Securities Regulatory Bureau fined Tianfeng Securities 15 million yuan. Five responsible individuals were fined a total of over 20 million yuan. The then Chairman Yu Lei and Vice President Xu Xin were imposed lifelong market bans.

Additionally, the Hubei Securities Regulatory Bureau found that Tianfeng Securities had some employees promoting financial products not sold through the company, leading to a suspension of private equity financial product sales for two years.

On the same evening, Tianfeng Securities was also penalized by the Fujian Securities Regulatory Bureau for failing to promptly disclose shareholding changes in Fujian Yong’an Forestry (Group) Co., Ltd. (hereinafter “Yongan Forestry”), resulting in a fine of 4 million yuan. The company’s President Wang Linjing was fined 1.4 million yuan.

Earlier in mid-February, Tianfeng Securities disclosed the above penalties and case filings. Regarding the series of fines, a person close to Tianfeng Securities told First Financial that the penalties involving the company and its former major shareholder, Contemporary Group, mark the full completion of regulatory procedures, ending the company’s historical risks and completing comprehensive rectification.

Suspension of certain business qualifications for 2 years

At the end of November last year, Tianfeng Securities suddenly faced case filing, suspected of information disclosure violations and illegal financing. According to previous reports by First Financial, a person close to Tianfeng Securities revealed that the company was under regulatory investigation, possibly related to the capital occupation by the former major shareholder, Contemporary Group, disclosed in the 2022 annual report.

More than two months after the case was filed, in mid-February this year, Tianfeng Securities received a fine. The company disclosed that, regarding the illegal financing and information disclosure violations by Tianfeng Securities for Contemporary Group, the Hubei Securities Regulatory Bureau proposed a maximum fine of 25 million yuan for Tianfeng Securities and Contemporary Group, with nine responsible individuals fined a total of 34.8 million yuan.

At the same time, the actual controller of Contemporary Group, Ai Luming, Tianfeng Securities’ then Chairman Yu Lei, and Vice President and CFO Xu Xin were all subjected to lifelong securities market bans.

A month later, the penalties were finalized, and Tianfeng Securities received a fine of over 10 million yuan.

According to disclosures, the Hubei Securities Regulatory Bureau found that Tianfeng Securities provided financing to Contemporary Group using its own funds. From 2020 to 2022, at the request of Contemporary Group, the company transferred funds through subsidiaries, designated investment rescue projects, purchased bonds of Contemporary-related companies via private funds, and engaged in reverse repurchase operations in its proprietary department, totaling 5.502 billion yuan in financing.

Of this, Tianfeng Securities recovered 5.253 billion yuan, and the remaining 249 million yuan was claimed through bankruptcy administrators or courts overseeing Contemporary Group.

Additionally, Tianfeng Securities provided financing of 1.012 billion yuan using client assets under management, purchasing bonds of Contemporary-related companies in the primary market and conducting reverse repurchase operations with two private funds, providing 492 million yuan and 1.52 billion yuan respectively.

Due to failure to disclose related-party transactions with Contemporary Group as required, Tianfeng Securities’ annual reports from 2020 to 2022 contained significant omissions.

Ultimately, the Hubei Securities Regulatory Bureau fined Tianfeng Securities 15 million yuan, imposed fines ranging from 3 million to 6 million yuan on five individuals including Yu Lei, and imposed lifelong market bans on Yu Lei and Xu Xin.

Meanwhile, Tianfeng Securities’ private equity product sales business was also found to be in violation, resulting in a suspension of business qualifications for two years.

Investigations revealed multiple violations, including some employees promoting financial products not sold through the company, illegal collaboration with Wuhan Contemporary Tianxin Wealth Investment Management Co., Ltd., and illegal sales of fixed-income private investment funds such as Fusheng Anxin Stable No. 1.

In addition, Tianfeng Securities also had issues with inaccurate disclosures of 2022 earnings forecasts and irregularities in the production and release of some research reports.

Fujian Securities Regulatory Bureau fines 4 million yuan

Along with these penalties, Tianfeng Securities was also fined by the Fujian Securities Regulatory Bureau.

In mid-February, Tianfeng Securities was filed for suspected illegal disclosure of shareholding changes in Fujian Yong’an Forestry (Group) Co., Ltd.

A month later, the company disclosed more details. At the end of December 2021, by court ruling, the defendant Su Mouxu and Fujian Nan’an Xiongchuang Investment Center (Limited Partnership), holding a total of 4,137.2 shares of Yongan Forestry, had those shares transferred to Tianfeng Securities as debt repayment, with the statement that “the above property rights transfer is effective from the date of this ruling.”

On that day, Tianfeng Securities, as the applicant, received the “Execution Ruling,” and its holdings of Yongan Forestry shares accounted for 12.29% of the company’s total share capital.

However, Tianfeng Securities failed to promptly disclose the change in shareholding. In response, the Fujian Securities Regulatory Bureau ordered correction, issued a warning, and fined 4 million yuan.

Additionally, the bureau believed that Wang Linjing, as President of Tianfeng Securities, failed to promptly organize the company to fulfill its disclosure obligations regarding Yongan Forestry’s shareholding changes, and held her directly responsible. She was given a warning and fined 1.4 million yuan.