[Notice No. 1] Notice of China Securities Regulatory Commission 〔2020〕No. 1

From January 1, 2015 to July 31, 2015, Citadel (Shanghai) Trading Co., Ltd. (hereinafter referred to as Citadel) entrusted asset management institutions to set up multiple asset management plans, and controlled and used accounts opened by asset management plan to committed transactions, and its behavior is suspected of violating relevant regulations on account management. In order to meet the transaction needs of Citadel, Fuanda Fund Management Co., Ltd. (hereinafter referred to as Fuanda Fund), CITIC Futures Co., Ltd. (hereinafter referred to as CITIC Futures), Beijing Qianshi Chuangfu Capital Management Co., Ltd. (hereinafter referred to as Qianshi Capital), Guoxin Futures Co., Ltd. (hereinafter referred to as Guoxin Futures) set up asset management plans for Citadel to control and use, and their behavior is suspected of violating the relevant provisions of the asset management business.

The CSRC always adheres to the principles of openness, fairness, and impartiality, resolutely maintains the order of market transactions, and conducts investigations into the above acts. Recently, the above-mentioned five institutions and their related staff members (hereinafter referred to as applicants) have applied to the China Securities Regulatory Commission for administrative settlement regarding their suspected illegal acts.

According to the "Implementation Measures for Administrative Settlement Pilots" (CSRC No. 114), the China Securities Regulatory Commission and the above applicants reached an administrative settlement on December 31, 2019.

According to the administrative settlement agreement:

1. Citadel and its related staff have paid 670 million RMB in administrative settlement. Fuanda Fund and related staff have paid 1.8 million RMB in administrative settlement. CITIC Futures and its related staff have paid administrative settlement 10 million RMB. Qianshi Capital and its related staff have paid 2.35 million RMB in administrative settlement. Guosen Futures and its related staff have paid 1 million RMB in administrative settlement.

2. Applicants has taken necessary measures to strengthen the company's internal control management, and submitted a written rectification report to the CSRC after completion.

3. According to Article 29 of the "Implementation Measures for Administrative Settlement Pilots", the China Securities Regulatory Commission terminated the investigation and trial procedures of the applicant's related behaviors.

China Securities Regulatory Commission

January 2, 2020