The off-exchange derivatives business has revealed a "loophole," and CAITONG SECURITIES and executive Pei Gencai received a regulatory "warning."

CAITONG SECURITIES was ordered to rectify by the Zhejiang Securities Regulatory Bureau due to poor management of its over-the-counter derivatives business, and a warning letter was issued to senior executive Pei Gencai. The regulatory agency found that the company had issues in target management, investor qualification review, and system management, violating relevant management regulations. The Zhejiang Securities Regulatory Bureau required CAITONG SECURITIES to submit a rectification report within 30 days and to strengthen internal controls and compliance management