Minsheng Securities was classified as Grade A Category according to the “2017 classification result of securities companies” announced by the China Securities Regulatory Commission on August 14. It was the first time for Minsheng Securities to be rated as a Grade A securities company since China Securities Regulatory Commission (CSRC) initiated the classified evaluation of securities companies in 2010.

This evaluation is the first classification result of securities traders in accordance with new standards after CSRC revised and promulgated the Provisions on the Classified Supervision and Administration of Securities Companies in July 2017. According to the Provisions, the final classification result shall be determined through the self-evaluation by securities company, primary examination by securities regulatory bureaus, review by CSRC Securities & Funds Institutions Supervision Department, and deliberation by the expert review committee composed of CSRC Securities & Funds Institutions Supervision Department, securities regulatory bureaus, self-regulatory organizations, and representatives from securities companies. 97 securities companies participated in the evaluation in 2017, 40 of which were classified as Category A securities companies.

In the past year, Minsheng Securities greatly improved the governance structure, strengthened the internal control management, continuously intensified the compliance management, comprehensively deepened the compliance management of all the employees, and strictly controlled the operation and management risks. Meanwhile, thanks to the good performance in poverty alleviation, Minsheng Securities made the rapidest progress in the classified evaluation this year with its ranking elevated by 5 successive grades, from Grade CC in Category C in the last year to Grade A in Category A.

The Board Chairman of Minsheng Securities Feng Henian expressed that, “Rising from CC to A indicates that the Company has achieved great improvement in the compliance risk control and business development this year. We will continuously strengthen the management of compliance risk control as a Category A securities trader, expand the business scale, and improve the core competitiveness, in order to lay foundation for the continued classification as Category A securities trader next year.”

The classification result of securities companies is the comprehensive evaluation of securities companies by the securities regulatory department for prudential regulation based on the risk management capability of securities companies in combination with the market competitiveness and compliance management level of the Company. The evaluation result reflects the overall conditions of the compliance management and risk control of securities companies. It can be divided into eleven grades and five categories, namely, A (AAA, AA, A), B (BBB, BB, B), C (CCC, CC, C), D, E.