The Company adheres to the principles of compliance operation, diligence and responsibility, and customer first. Adhering to the concept of creating value for customers and growing together with customers, the Company closely coordinates its business lines to meet customers’ diversified service needs.

The Securities Law of the People’s Republic of China, the Compliance Management Measures for Securities Companies and Securities Investment Fund Management Companies and other laws and regulations make a significant impact on the operation of the Companies. Such laws and regulations stipulate the responsibilities and compliance management responsibilities of securities companies as underwriting institutions, including formulating and implementing compliance management systems, establishing compliance management mechanisms and preventing compliance risks. In 2019, we will strictly comply with the requirements of relevant laws and regulations and take a series of measures to ensure the Company’s compliance operation and protect the interests of customers.
Improving the Quality of
Products and Services

The Company is committed to providing customers with the highest quality, the most comprehensive, and the most professional services. In order to unify service standards and improve service quality, the Company has established a series of systems, processes and specifications for various businesses carried out by the brokerage business branches, and compiled the Compilation of Operational Business Regulations and Processes, covering aspects such as customer service, outlet management, and business assessment to effectively improve service.

  • 1Providing Quality Services

    The Company’s centralized customer service center has set up three sub-centers in Qingdao, Hangzhou and Xi’an respectively, providing clients with all-round standardized business operation services such as online business handling service, securities trading consulting and customer feedback collection. Relying on the Compa’s powerful information resources and research and development advantages, the centralized customer service center constantly optimizes industry-leading customer voice and online interactive customer service platform, continues with business innovation, and creates an outstanding online business execution center in the securities industry.

    The Company attaches great importance to customer service work, obtains customer feedback on services through various channels, continuously optimizes service processes, continuously improves customer satisfaction, and enables each customer to get a quality service experience in our company. The Company obtains customer service evaluation from various business perspectives. As of December 2019, the Company’s unified customer contact center’s customer satisfaction with mobile phone account opening was 99.82%, customer satisfaction with telephone consultation was 99.53%, and customer satisfaction with online consulting was 96.64%, achieving a higher level of satisfaction.

  • 2Improving Complaint Protection Mechanism

    In 2019, the Company continued to improve the customer complaint protection mechanism, strictly in accordance with the requirements of the complaint management system, and The Company assigns special personnel to deal with customer complaints, specifies the responsible departments and persons for complaints handling, fi les the complaints after closure, conducts regular inspection, and includes the assessment of the handling of customer complaints into the Company’s compliance assessment system, and rewards and punishes the staff according to relevant measures.

    The Company established a multi-department coordination mechanism to improve the efficiency of claim processing and protect the legitimate rights and interests of customers.

  • 3Improve Customer Service

    The Company continues to promote the improvement of off-site business service quality. In accordance with the relevant requirements of the industry association, the company established off-site account business specifications, to continuously improve the quality of off-site business services through technological upgrading.

    The Company has further enriched the types of off-site business transactions, and has successively launched offsite business processing functions such as securities account hanging, three-party depository bank changes, retrieved fund accounts, mobile phone number resets, cost price type settings, and on-site and off-site account correspondence maintenance, transfer of funds off-site, opening of the authority of the science and technology board, and one-stop account cancellation for customers in the “Xin E Tou” app, have realized self-service processing of common counter services for individual customers. In addition, the Company also develops and launches one-stop account opening and one-stop account cancellation and other service processing functions on the iPad terminal, and provides business processing support tools for high-end and special customer on-site services. The deployment of off-site business processing functions provides customers with more business processing options and convenience, and continuously improves customer experience.

    In addition, the Company has carried out a series of work in customer service, such as optimizing some account business forms and processes, optimizing business processes, and improving work efficiency. Enabling a comprehensive teller business platform to reduce counter learning costs, and improving business acceptance efficiency. Strengthening the identification of foreign personnel and Hong Kong, Macao and Taiwan personnel to further clarify the identity of customers.

Advertisement Compliance

According to the Advertising Law of the People’s Republic of China and the Interim Measures for the Administration of Internet Advertising, advertisers are responsible for the authenticity of the advertising content, and the advertisement publishers check the relevant certification documents and check the advertising content according to the laws and administrative regulations. We have strictly complied with the provisions of these laws and regulations, and conducted strict examination and verification of the advertising content to avoid false publicity or misleading users of the advertising content.

Appropriateness Management

The Administrative Measures on the Appropriateness of Securities and Futures Investors issued by the CSRC further strengthens the obligation of securities operating institutions in the whole process of the appropriateness management, requires operators to improve the internal management system, and prohibits the adoption of assessment and incentive measures to encourage employees to sell improperly. CITIC Securities strictly implements these requirements, and effectively assumes the “responsibility of sellers”, and follows a series of appropriate conduct codes when selling products to investors, develops appropriate internal management systems and procedures to protect the legitimate rights and interests of investors.

  • 1Construction of Investor Appropriateness Management Platform

    In 2019, the Company launched an integrated management platform for investor appropriateness, established a dynamic assessment model of customer risk tolerance through big data technology, and provided a relatively objective and true reference rating for customer risk levels. The platform also initially realized the overview and comprehensive management functions of the investors appropriateness work, developed and enabled functional modules such as investor and product or service hierarchical overview, investor portraits, risk monitoring and early warning and processing, self-inspection, reporting and analysis, training, customer disputes, and information reporting to regulatory inspection.

  • 2Construction of STAR Market business appropriateness system

    The Company has established the appropriate management system and counter operation guidelines for the STAR Market stock trading (including the STAR Market financing and margin trading), and in accordance with the spirit of the SSE’s Notice on the Implementation of the Appropriate Management Requirements for STAR Market. So the verification standards for the access criteria to the STAR Market has been further improved to ensure that appropriate customers are allowed to participate in the STAR Market transaction.

Information Security and
Privacy Protection

Information security and privacy protection is an important issue of corporate product responsibility. The Company strictly abides by the Securities Law of the People’s Republic of China, the Law of the People’s Republic of China on the Protection of the Rights, Cybersecurity Law of the People’s Republic of China and Interests of Consumers and other relevant laws and regulations. Such laws and regulations, with a significant impact on the privacy protection of customers, require the Company to keep confidential the accounts opened by customers according to law. The Company sets out clear rules on the protection and non-disclosure of client information in Customer Account Business Regulations and Operational Guidelines, the Implementing Rules for the Appropriate Management of Brokerage Investors (Trial), and the Implementation Rules on Video and Sound Recording in Investor Suitability Management in Brokerage Business (Trial). Disclosure to any external party is prohibited and such information and data must not be divulged or misused. Moreover, the Company has specified administrative measures and rules in relevant systems such as access control over the counter trading system and client fi les management system, in order to implement confidentiality requirements for client data and information.

The Company adheres to the corporate information security policy of “Prevention First, Classified Protection, Common Engagement and Continual Improvement”, the Company has realized the dynamic closed-loop management encompassing physical security, cyber security, host/terminal security, application security and data security, applied the principle of attaching equal importance to technologies and management, and enhanced company-wide information security. The Company carefully implements customer information, and conducts corresponding control from the data level, application system level, and terminal level, and enhance employees’ security awareness to strictly protect customer privacy and security.

The Company completed the ISO27001 Information Security Management System certification in 2019 to further strengthen the information security management and control. Based on industrial requirements such as The Technical Guidelines for the Security Management of Securities Companies’ Centralized Trading and the Code for Operation and Maintenance of Information Systems in the Securities and Futures Industry, the Company revised and issued 79 information security policy system documents, including first-level information security policies, second-level information security management regulations, third-level information security management rules and specifications, fourth-level information security operation record forms, and formulated a complete information security KPIs and KRI system to provide a reasonable basis for subsequent information security work and risk quantification.

In 2019, the Company designed a production desensitization solution for testing environment data, and targeted protection of customer privacy data in accordance with the security industry data classification standards released by the industry. At the same time, the information security management department designed the company’s terminal data leakage prevention management control scheme, and audited and alarmed in various aspects such as instant message monitoring, network outbound, peripheral transmission, and screen watermark. The Company deployed network data leakage protection monitoring system, IM monitoring system, and network behavior monitoring tools and database audit tools. Among them, the network data leakage protection monitoring system is used to monitor and audit the leakage of customer information and other sensitive data; IM monitoring tool audits the chat log of specific business departments; and the network behavior control tool can record and audit the Company’s employees’ access to the Internet mailbox, thus realizing the full coverage of the Company’s business behavior audit. In addition, the Company also established a sensitive research and development domain, to ensure that the source code cannot be accessed by the desktop terminal access, effectively protecting the Company’s information security.

Respect for Intellectual

The Company abides by the Advertising Law of the People’s Republic of China, the Trademark Law of the People’s Republic of China, the Copyright Law of the People’s Republic of China and other laws and regulations related to intellectual property. Such laws and regulations prohibit the Company from infringing the exclusive right to use a registered trademark of a trademark registrant or infringing the copyright of a copyright owner, bringing a significant impact on the Company’s intellectual property protection. The Company has formulated relevant management measures for its trademark and copyright protection, such as the Trademark Management Measures (Trial) and the Copyright Management Measures (Trial). The aforementioned management measures clearly stipulate the administrative departments and responsibilities of relevant intellectual property rights, as well as the ownership, exercise and protection of rights and interests, and designate the legal departments to supervise the implementation of the actual management. When the rights and interests of the Company are infringed, the legal department of the Company will safeguard its legitimate rights and interests in accordance with relevant national and local laws and regulations.

Appropriateness Management

While implementing the service management, the Company hopes to contribute more to investors, so as to implement corporate social responsibility based on corporate services better.

In 2019, the Company launched a number of investor education campaigns. In the special activity of private fund investor education themed “Distinguishing Authenticity and Recognizing Risks as a Rational Private Equity Investor” organized by Shenzhen Securities Regulatory Bureau, the Company organized branches and business departments to popularize private fund knowledge, prompt alert fund investment risks, and popularize legal compliance and rights protection channels, through online and offline publicity forms to help investors correctly understand private equity funds, strengthen risk prevention awareness, and improve self-protection capabilities. Relevant activities have achieved remarkable results, including:
• Sending more than 1.36 million messages to customers to promote the activities of “distinguishing authenticity and identifying risks, to be a rational private equity investor”.
• Printing 9,753 copies of CITIC Securities Private Equity Investor Education Publicity Manual.
• Producing 172 banners, posting 235 posters, and presenting 90 roll-up banners.
• Conducting a total of 241 on-site special promotion activities, reaching a total audience of 4,261.
• Publishing articles through official WeChat public account, such as “Be careful, as this type of risk will threaten your money!” “Some people will lie to you like this!” “Such institutions are eating away your hard-earned money.” “Your money may be stolen in this way.” for publicity and education, with a total of about 101,000 reads.

During the gradual implementation of ESG management, the Company’s various business services are also subject to the supervision and evaluation of all sectors of society:
• On February 12, 2019, the Company won the 2018 “Investor Investigation Excellent Securities Company Award” from China Securities Investor Protection Fund Corporation; and Yin Zhonghua from Changzhou Huanfu Road Securities Sales Department won the “Outstanding General Manager Survey of Sales Department Manager Award”.
• On January 4, 2019, one of the Company’s education work won the “Best Video Award” and “Investor’s Favorite Video Edication Award” by Shanghai Stock Exchange.