Shenwan Hongyuan () is a

securities brokerage A broker is a person or firm who arranges transactions between a buyer and a seller for a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal. Neither role should be con ...

company in

China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...

which engages in the operation of large-scale comprehensive securities broking and trading services. The company was founded in 1996 and is headquartered in

Xinjiang Xinjiang, SASM/GNC: ''Xinjang''; zh, c=, p=Xīnjiāng; formerly romanized as Sinkiang (, ), officially the Xinjiang Uygur Autonomous Region (XUAR), is an autonomous region of the People's Republic of China (PRC), located in the northwest ...

History

Shenwan Hongyuan is the result of multiple mergers of Chinese securities firms. The company was first established on September 16, 1996 as Shenyin & Wanguo Securities via a merger between Shenyin Securities and Wanguo Securities. The merger happened in response to the "327 incident" which occurred in 1995. It involved a placement of a huge sell order on three-year

government bond A government bond or sovereign bond is a form of bond issued by a government to support public spending. It generally includes a commitment to pay periodic interest, called coupon payments'','' and to repay the face value on the maturity date ...

futures Futures may mean: Finance *Futures contract, a tradable financial derivatives contract *Futures exchange, a financial market where futures contracts are traded * ''Futures'' (magazine), an American finance magazine Music * ''Futures'' (album), a ...

shortly before the close of trading on February 23. The transactions were discovered

Shanghai Stock Exchange The Shanghai Stock Exchange (SSE) is a stock exchange based in the city of Shanghai, China. It is one of the three stock exchanges operating independently in mainland China, the others being the Beijing Stock Exchange and the Shenzhen Stock Exc ...

and nullified resulting in Wanguo Securities almost going bankrupt. Wanguo Securities' president, Guan Jinsheng was sentenced to 17 years in jail for

market manipulation In economics and finance, market manipulation is a type of market abuse where there is a deliberate attempt to interfere with the free and fair operation of the market; the most blatant of cases involve creating false or misleading appearances ...

and his firm was forced to merge with Shenyin Securities. In 1998, the company advised on the China's biggest asset restructuring deals,which included Shanghai Pharmaceuticals, Shanghai Shenda, Shanghai Sanmao Group, and Nantong Machinery. For both 1998 and 1999 the company ranked first among brokerages in terms of net assets, net profit and stock trading volume. On January 2015, the company merged with Hongyuan Securities which was the first securities firm to have listed in China. The deal was valued at nearly 40 billion yuan (US$ 6.3 billion) making it the biggest brokerage merger in China at the time. After the merger, the company was renamed to its current name, Shenwan Hongyuan and also became the second largest brokerage firm in China by market value at the time due to surge in stock price on its trading debut. During this time, Shenwan Hongyuan also moved its headquarters to Urumqi, Xinjiang. On April 26, 2019, Shenwan Hongyuan held an

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...

for its

H shares H shares () refer to the shares of companies incorporated in mainland China that are traded on the Hong Kong Stock Exchange. Many companies float their shares simultaneously on the Hong Kong market and one of the two mainland Chinese stock exc ...

on the

Hong Kong Stock Exchange The Stock Exchange of Hong Kong (SEHK, also known as Hong Kong Stock Exchange) is a stock exchange based in Hong Kong. As of the end of 2020, it has 2,538 listed companies with a combined market capitalization of HK$47 trillion. It is repor ...

. However unlike the strong performance of its A shares in 2015, the performance of its H share price dropped 12% on its trading debut.

Regulatory issues

On September 3, 2020, the

Securities and Futures Commission The Securities and Futures Commission (SFC) of Hong Kong is the independent statutory body charged with regulating the securities and futures markets in Hong Kong. The SFC is responsible for fostering an orderly securities and futures market ...

issued a restriction notice to Shenwan Hongyuan to freeze client accounts linked to suspected market manipulation. In March 2022, the China Securities Regulatory Commission fined Shenwan Hongyuan for improper management of compliance controls related to

Ant Group Ant Group ()'','' formerly known as Ant Financial, is an affiliate company of the Chinese conglomerate Alibaba Group. The group owns the world's largest mobile (digital) payment platform Alipay, which serves over 1.3 billion users and 80 million ...

References

External links

Official site
{{authority control Companies listed on the Shenzhen Stock Exchange Companies listed on the Hong Kong Stock Exchange Financial services companies established in 1996 Companies based in Xinjiang Investment banks in China Financial services companies of China H shares

History

Regulatory issues

See also

References

External links