China's securities regulators have moved against two domestic brokerages, fining Guosheng Securities and Xiangcai Securities and ordering both firms to suspend new account openings for three months after uncovering failures in their real-name registration systems — a key safeguard against money laundering.
Guosheng Securities
The Jiangxi bureau of the China Securities Regulatory Commission issued advance notices of administrative measures against Guosheng: a warning, a 290,000-yuan (about $43,000) fine on the company, an order to correct its practices and a three-month suspension of new securities account openings. Six former executives — including the vice presidents who oversaw the brokerage business management and wealth management departments — were warned and fined a combined 810,000 yuan (about $120,000). Total penalties for the firm and its executives came to 1.1 million yuan.
Guosheng said the penalties stem from suspected violations of real-name account registration rules and other improper conduct.
Xiangcai Securities
Xiangcai was placed under CSRC investigation on July 31, 2026, for suspected breaches of the real-name provisions under the Measures for the Administration of Securities Brokerage Business. On September 24, the Hunan securities regulatory bureau issued an advance notice of administrative penalty along with an order for corrective action, a three-month halt on opening new accounts and disciplinary measures against the relevant personnel.
Combined fines across both companies and the responsible individuals total about 2.35 million yuan (roughly $350,000).
Why it matters
Real-name registration is one of the central pillars of China's financial oversight, designed to ensure that every securities account is tied to a verified identity. The penalties land as Beijing tightens supervision of brokerage conduct, and the three-month freeze on new accounts is a meaningful commercial hit for both firms. The notices are advance measures, meaning the final orders could still be adjusted.
Sources: [BigGo Finance: China's Guosheng and Xiangcai Securities fined, ordered to suspend new accounts](https://finance.biggo.com/news/03d25936-de1b-415e-b359-8ee380317912)
Guosheng Securities
The Jiangxi bureau of the China Securities Regulatory Commission issued advance notices of administrative measures against Guosheng: a warning, a 290,000-yuan (about $43,000) fine on the company, an order to correct its practices and a three-month suspension of new securities account openings. Six former executives — including the vice presidents who oversaw the brokerage business management and wealth management departments — were warned and fined a combined 810,000 yuan (about $120,000). Total penalties for the firm and its executives came to 1.1 million yuan.
Guosheng said the penalties stem from suspected violations of real-name account registration rules and other improper conduct.
Xiangcai Securities
Xiangcai was placed under CSRC investigation on July 31, 2026, for suspected breaches of the real-name provisions under the Measures for the Administration of Securities Brokerage Business. On September 24, the Hunan securities regulatory bureau issued an advance notice of administrative penalty along with an order for corrective action, a three-month halt on opening new accounts and disciplinary measures against the relevant personnel.
Combined fines across both companies and the responsible individuals total about 2.35 million yuan (roughly $350,000).
Why it matters
Real-name registration is one of the central pillars of China's financial oversight, designed to ensure that every securities account is tied to a verified identity. The penalties land as Beijing tightens supervision of brokerage conduct, and the three-month freeze on new accounts is a meaningful commercial hit for both firms. The notices are advance measures, meaning the final orders could still be adjusted.
Sources: [BigGo Finance: China's Guosheng and Xiangcai Securities fined, ordered to suspend new accounts](https://finance.biggo.com/news/03d25936-de1b-415e-b359-8ee380317912)
