The management arm of Guotai Haitong Securities, a prominent Chinese brokerage, has been hit with a penalty of 52.5 million yuan (US$7.8 million) for violations related to its offshore investment activities. This move comes as Beijing intensifies its monitoring of capital flows. Guotai Haitong Securities Asset Management was fined 25.9 million yuan and directed to forfeit 26.7 million yuan in illegal gains for breaching foreign-exchange regulations governing the Qualified Domestic Institutional Investor (QDII) program and for failing to adequately report cross-border transactions. These actions were disclosed in the company’s interim report and by the State Administration of Foreign Exchange (SAFE).
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