Hikvision CEO And Vice-Chair Receive Warning, Government Investigation Concluded

By Charles Rollet, Published Mar 16, 2020, 07:15am EDT (Info+)

The China Securities Regulatory Commission (CSRC) has concluded their investigation into Hikvision's CEO and Vice-Chair, issuing a warning but no fine nor further punishment.

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Inside this note, we examine the investigation, the meaning of the warning, and the future for Hikvision.

**********

** ********, ********* ********* **** *** CEO ** ********* (******** *****) *** vice-chair/co-founder **** *********** ***** ************** *****'* ********** ********* **** "********* violations ** ********** ************".

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***** **** ******** ************ **** ** further *******, *** ***** ******* **************************************** *** ****, *.*.************ **** *** **** **** ***** to ** ** * *** ** reducing *** *****. **** ***** ******** raised ******** **** ********* *** **** favor **** *** ******** *** **********, which ******** *** *******'* *****.

Hikvision ********* ************* ******

*** ************* ** *** ******, ************* ** ********,****** ***** **** **** *** ** bought/sold ********* ***** ** **** *********** "arrangements" ******* ********** ****:

*** *******'* **** ******** **** ******* and ******* ******* ** *********failed ** ****** ** ********* that they wereproviding ********* ************ *** ****** **** **** ********* *** ********* ***** ******' *********, which caused the public company to not truthfully, accurately, and comprehensively disclose such information. This has violated Article 3 of the ************** ******** *** *** ********** ** Information ** ****** *********.

******* ********* *** *** **** ********* what ***** "********* ************" ******** **** or *** ******** ************/******* ********.

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Consequence: ******* ******, **** ** ** ******

*** ********* ************ ****** **** **** had ****** * "******* ******" ***** would ** ******** ** ** *** Gong's "*********** ******" [******** *****]:

*** ********** ***decided ** ***** * ******* ****** as a regulatory measure to Gong Hongjia and Hu Yangzhong, and will ****** **** [*** ******] ** ***** ***** ** *** ********** *** ******* ****** *********** ******. Meanwhile, the Commission requires Gong Hongjia and Hu Yangzhong to present a written rectification report [i.e. mandatory letter of apology] to the Securities Commission's Zhejiang Bureau by Mar 20, 2020.

Credibility ****** ******

*** "*********** ******" ** **** ** a*** *** ********** * ********** ******** ** ****** participants. *******, **** ******'* **** *** specific *********** ***** *** ***** ****** of ****** **** * ****** ** one's ****.

***** ********** **** **** ****** **** warning ******* ****** **** ****** ******. For *******, *** ********** ** * large ********* ******* *************** *******'* ********** ******* ***** ***** and *** ****** * ******* ******, but ***** *** ** ****** ***** from **** **** *********.

Specific ******* ****** *******

*** ***** ***** **** **** ****** unknown, *********:

  • **** "********* ************" **** **** *** Hu ******** **?
  • ***** ******** ***** ************ **** ************?
  • **** **** ****** **'* ********/******** ****** Hikvision?

** **** ***** ********* ***** ********* and **** ****** ** **** *******.

**********

*******, **** ** **** **** *** Hikvision. *** ************* *** ****** ******* concerns **** *** ** ********* - long *** *******'* ******* ***** - would ** ** ****, ******** ******* Hikvision ********** ** * ***** **** for *** *******. *** ****** * warning, ***** *** ** ******* ***** ramifications *****.

** *** ********, *******, ** **** show **** ********** *** ****** ******* an *** ** ** *** **** further ********* ***** ***** * **** significant ********.

Comments (1)

I don't understand why would anyone want to do business in that country. A "forced" letter of apology to the government. Smh

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