Shenwan Hongyuan () is a
securities brokerage company in
China 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 ...
,
China.
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 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 and nullified resulting in Wanguo Securities almost going bankrupt.
Wanguo Securities' president, Guan Jinsheng was sentenced to 17 years in jail for
market manipulation 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 investme ...
for its
H shares 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 rep ...
.
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 mar ...
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.
See also
*
Securities industry in China
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