The chief of the brokerage firm was arrested and the chairman's internal speech was exposed and more inside information surfaced...

2021-09-15: [Original Article Link].

Chairman He Wei internally informed the Cai Junyi incident and said: "I don't want a mouse shit to break a pot of soup!" A brokerage China reporter learned that Cai Junyi, assistant to the director of the Shanghai Securities Research Institute and chief market analyst, has been taken away by the public security organs. Shanghai Securities has also identified the Cai Yiyi incident and notified the whole company. Cai Junyi has also been removed from the post of assistant to the director. The reporter looked through the Shanghai Securities Service Number and found that the content of Cai Yiyi has been deleted. Shanghai Securities replied that the company learned about Cai Junyi's affairs from relevant channels, and the relevant departments are investigating and handling them. We are highly concerned and actively cooperate with relevant departments in their investigation. If there are further results, our company will inform you in time. According to our preliminary communication with relevant departments, Cai Junyi's behavior is his personal behavior and has nothing to do with the company. Although the company has always attached importance to the management of all employees' code of conduct, we will learn from one another and further strengthen the education of employees' compliance with laws and regulations, raise employees' awareness of compliance legality and self-discipline. A Chinese reporter from a brokerage firm obtained an exclusive internal speech from a person familiar with the matter showed that the Cai Junyi incident occurred at the end of August. Shanghai Securities held a briefing within the company after the incident. He Wei, chairman of Shanghai Securities, made a speech and sharply criticized the Cai Junyi incident. It mentioned: "I don't know Mr. Cai Junyi who is in the Baoshan detention center at the moment. When he thinks of those people who have lost their hard-earned money because of him, is he like a knife?" He Wei also said: "Let us remember this lesson at the end of August 2021. Cai Junyi 'shamed Shanghai Securities and humiliated the research institute '! But I hope that the research institute and everyone will be "shameless people are close to bravery." We can only accept the lesson, tighten the fence, create a clean environment, and do a good job is the most important thing." A brokerage China reporter learned from people familiar with the matter that as early as dozens of days ago, Shanghai Securities held a briefing on the Cai Junyi incident. Subsequently, the document "Chairman He Wei's Speech at the Cai Junyi Incident Briefing" was listed on the company's intranet, and the final editing time was September 6. From the document, you can see some of the features of the Cai Junyi incident. The document shows that in his speech, He Wei first affirmed the recent achievements and thriving atmosphere of Shanghai Securities. He said: "According to the ranking of the China Securities Association, in only half a year, some of our indicators have been greatly improved, such as the important operating income and profit indicators, from more than 100 securities companies ranked about 70, up about 18 to 52, of course, this is short-term, may not be able to do so, but our efforts are to make it rise and move forward." In the second half of his speech, He Wei talked about the Cai Junyi incident: "But, unfortunately, the Cai Junyi incident occurred at this critical moment. We must guard against this bad personal incident, harm to companies that are on the rise!" The document shows that He Wei's wording when talking about the Cai Junyi incident is extremely fierce: "We hope that the research strength and research brand of Shanghai Securities will add color to this golden sign, we hope that we can be as well-known as many brokerages with distinctive research capabilities, and never want us to see investors downstairs who don't know the truth because of Cai Junyi, adding the bad influence he personally caused to Shanghai Securities, a group of people pulled up a banner downstairs, a white banner, with the words" Shanghai Securities, return my hard-earned money' "in black." He Wei repeatedly emphasized: "Sorry, my words may be too sharp today, but please understand that it is not forgiveness. I don't want a mouse shit to break a pot of soup!" "I don't know Mr. Cai Junyi, who is in Baoshan detention center at the moment. When he thinks of those who have lost their hard-earned money because of him, is he like a knife? I don't know, I really don't know...... We can only hope that Mr. Cai Junyi's heart is still alive and can cooperate with the police thoroughly and sincerely and honestly, and cooperate with the police's interrogation, investigation and case handling." He Wei went on to say: "For us, we are at the critical moment when we need reform most, transformation and most need improvement. We hope that we will not be disturbed by this matter, but to accept the lesson." "Comrades, let us remember this lesson at the end of August 2021. Cai Junyi 'shamed Shanghai Securities and humiliated the Institute '! But we hope that the Institute and everyone will be "shameless people are close to bravery", we only learn the lessons, tighten the fence, create a clean environment, do a good job is the most important thing, only in this way, only in this way can we be worthy of shareholders, worthy of society, worthy of the expectations of the Shanghai Municipal Party Committee and Municipal Government and the State-owned Assets Supervision and Administration Commission, and worthy of our customers. It is most important to do a good job." He Wei said. According to the official WeChat account of Shanghai Securities, Cai Junyi, assistant to the director of Shanghai Securities Research Institute, chief market analyst, certified public accountant and Fudan EMBA, is also a special guest of many TV stations. According to previous media reports, the specific reasons for Cai Junyi's accident have not yet been announced by the police, which may be related to the direct broadcast of virtual coins. The reporter learned from people familiar with the matter that Cai Junyi has been removed from the post of assistant to the director of the Research Institute. Judging from the content of the internal notification of Shanghai Securities, Cai Yiyi is suspected of losing investors due to online opinions or diversion. A person close to Shanghai Securities told the brokerage China reporter that Cai Junyi should be his own live broadcast, and the company should not know. It is worth noting that the May 18 this year evening central bank shot issued, three major association Voice stated that the provision of virtual currency trading service suspected of illegal financial activities. The announcement pointed out that it is necessary to correctly understand the essential attributes of virtual currencies and related business activities. Virtual currency is a specific virtual commodity, not issued by the Monetary Authority, does not have monetary attributes such as legal compensation and mandatory, is not a real currency, it should not and cannot be used as currency in the market. Since Cai Yiyi is a celebrity, many "Li Gui" numbers on WeChat have also disappeared. For example, the micro-signal "Cai Junyi on the City" was renamed "Pre-Market Analysis" on the morning of September 14th ". With the rise of live video, the compliance problem of brokerage live broadcast has been widely concerned by the industry, and Shanghai Securities this time, the problem of insufficient compliance wind control in its business is also worthy of industry vigilance. In recent years, China's wealth management market has developed rapidly, and investors' demand for investment advisory services is also rising. Among them, the new investors in the market show the characteristics of youth and knowledge. Most of them are active in new media platforms such as online social networking, and there is a strong demand for securities research services. On August 28th, the State Cyberspace Administration of China launched the Qinglang · Commercial website platform and the "self-media" illegal acquisition, editing and release of financial and economic information special rectification, and banned and shut down a number of acts as "black mouth", extortion, the "self-media" account with strong social reflection. The quality of the employees of this type of illegal securities investment consulting is uneven, the research ability is insufficient, and the risk is great for the purpose of defrauding customers of money. Regarding the emergence of "black mouth", some insiders pointed out that it is mainly related to the rise of the mobile Internet. Non-licensed institutions and individuals are good at using new media means to "attract powder" through financial content ", then cash out, such as fraud, illegal fund-raising, stock manipulation, etc., seriously disrupt the business of licensed institutions. After the "black mouth" is shut down, it is even more necessary for the "regular army" like securities companies to stand up and give investors professional investment consulting services. Obviously, if securities companies can not reasonably grasp the scale in the compliance business, or even serious violations of laws and regulations, the impact may be worse than the so-called "black mouth" impact. Some securities institutions are also actively strengthening the compliance management of live broadcast, for example, brokerage China reporters learned in previous interviews, Galaxy Securities and other brokerage business departments of the live broadcast or video content, during the plan planning stage, it will be reviewed by the department's compliance management personnel. The compliance management personnel will evaluate and check according to the characteristics of the business or product to ensure compliance.

Note: This is auto-translated version of an article meant for Chinese audience. A mature and nuanced reading is suggested.