In order to fully implement the spirit of the 19th CPC National Congress and the second and third plenary sessions of the 19th CPC Central Committee, effectively guard against and mitigate financial risks, the State Administration of Foreign Exchange (SAFE) has earnestly implemented the deployment of special rectification of Internet financial risks, and vigorously promoted the clean-up and rectification of illegal online foreign exchange speculation platforms. We hereby inform you of the recent investigation and punishment of relevant cases as follows:

Upon investigation and verification, Shenzhen ThinkMarkets Consulting Co., Ltd. provided business promotion services for the online foreign exchange speculation platform operated by its overseas shareholders, solicited domestic investors to participate in overseas foreign exchange margin trading, and collected service fees in violation of regulations, which violates Article 12 of the Regulations of the People’s Republic of China on Foreign Exchange Administration, and constitutes a serious offense. The Shenzhen Branch of the SAFE, in accordance with Article 41 of the Regulations of the People’s Republic of China on Foreign Exchange Administration, gave a warning to the company, ordered it to make corrections and imposed a fine of RMB 1.18 million.

Presently, the regulatory authorities in China haven’t approved any institutions to conduct foreign exchange margin trading either directly or on agency basis. In accordance with the Circular on Sternly Investigating and Punishing Illegal Foreign Exchange Futures Transactions and Foreign Exchange Margin Trading Activities (Zhengjianfazi No. 165 [1994], which was jointly released by China Securities Regulatory Commission, the State Administration of Foreign Exchange, the State Administration for Industry and Commerce, and the Ministry of Public Security), any unauthorized foreign exchange futures transaction and foreign exchange margin trading by an unapproved institution is illegal; it is also an offense for a client (organization or individual) to entrust an institution which is not approved and registered to conduct foreign exchange futures transaction and foreign exchange margin trading, whether in foreign currency or renminbi as security deposit. The SAFE and its branches will continue to earnestly implement the deployment requirements of guarding against and mitigating financial risks, carry out clean-up and rectification of illegal online foreign exchange speculation platforms in a steady and orderly manner, so as to safeguard the national financial security and stability. (The end)