Ex-Dongguan Investment Chairman Chen Zhaoxing Surrenders; Dongguan Securities H1 Profit Up 71.9%

On August 7, the Dongguan Discipline Inspection and Supervision website reported that Chen Zhaoxing, former Party secretary and chairman of Dongguan Investment Holding Group Co. , Ltd. , is suspected of serious disciplinary and legal violations. He voluntarily surrendered and is currently under disciplinary review and supervisory investigation by the Dongguan Commission for Discipline Inspection and Supervision. The surrender came less than a year after Chen resigned as chairman of Dongguan Securities.

Public information shows that Chen Zhaoxing was born in December 1975, holds a bachelor's degree, and has more than 20 years of experience in the securities industry. He served as a core executive at Dongguan Securities for a long time, holding positions including business manager in the brokerage business department, business manager in the office, deputy director and board secretary, office director, assistant to the company president, general manager of the Shenzhen branch, vice president, and president. He became chairman of Dongguan Securities in October 2017. In August 2025, according to a notice from the Dongguan State-owned Assets Supervision and Administration Commission, Chen took up the post of chairman of Dongguan Investment Holding Group, which holds a 32.9% stake in Dongguan Securities and is its largest shareholder. In November 2025, Chen resigned as director, chairman, and legal representative of the third board of Dongguan Securities for personal reasons, and after resigning, he no longer held any position in the company or its controlled subsidiaries. He also concurrently served as chairman of Hualian Futures, chairman of Dongzheng Jinxin, vice president of the Guangdong Securities and Futures Industry Association, a member of the Investment Banking Committee of the Securities Association of China, and president of the Dongguan Securities and Futures Industry Association.

Dongguan Securities was founded in June 1988 with a registered capital of RMB 1.5 billion and is one of the first underwriting and sponsorship institutions in the country. In June 2015, Dongguan Securities submitted its IPO application materials. In 2017, the IPO review was suspended due to the bribery case involving Yang Maocai, the actual controller of major shareholder Jinlong Shares, and was shelved for nearly four years. In February 2021, the review resumed, and in February 2022, the IPO passed the listing review, but the approval document was not obtained because the submission of financial materials was postponed. In March 2023, Dongguan Securities submitted an IPO transfer application to the Shenzhen Stock Exchange. At the end of March 2024, the review was suspended again because financial materials had expired, and it resumed in June. As of the end of March 2026, the company had updated its prospectus seven times and still had not received the first round of review inquiries.

According to the unaudited financial report of Dongguan Securities disclosed by Jinlong Shares on July 17, in the first half of 2026, Dongguan Securities achieved total operating revenue of RMB 2.089 billion, up 47.84% year-on-year; net profit was RMB 820 million, up 71.9% year-on-year. Among these, net fee income from brokerage business was RMB 1.053 billion, up more than 40% year-on-year; investment income was RMB 268 million, higher than RMB 191 million in the same period of 2025; net fee income from investment banking was RMB 53.44 million, down 1.3% year-on-year; and net fee income from asset management was RMB 19.55 million, down 28.93% year-on-year.