---
title: "The China Securities Regulatory Commission withdrew the restriction notice issued to brokerage firms in order to refund misappropriated funds to affected individuals"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/270979803.md"
description: "The China Securities Regulatory Commission (CSRC) has withdrawn the restriction notice against three brokerage firms to facilitate the return of funds misappropriated due to financial issues at Huahan Health Industry. The notice had previously prohibited Changjiang Securities, Haitong International Securities, and Jinfeng Securities from handling assets in specific client accounts. Investigations revealed that Huahan's funds were misappropriated and deposited into related accounts. The CSRC has referred the case to the police, and after the withdrawal of the notice, the liquidator can return assets to the affected individuals"
datetime: "2025-12-29T10:05:27.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/270979803.md)
  - [en](https://longbridge.com/en/news/270979803.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/270979803.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/270979803.md) | [繁體中文](https://longbridge.com/zh-HK/news/270979803.md)


# The China Securities Regulatory Commission withdrew the restriction notice issued to brokerage firms in order to refund misappropriated funds to affected individuals

The Securities and Futures Commission (SFC) announced that it has withdrawn the restriction notices issued to three brokerage firms, which prohibited them from disposing of or handling funds or assets in specific client accounts. These accounts are related to Huahan Health Industry (delisted) disclosing false or misleading information in its financial statements.

The three brokerage firms are: Changjiang Securities Brokerage (Hong Kong) Limited, Haitong International Securities Company Limited, and King Lee Holdings Limited.

Investment company Bull’s-Eye Limited (BEL), owned by former senior executives of Huahan, Zhang Yue and Deng Jie, opened accounts at these three brokerage firms, and the restriction notices aimed to preserve the assets held by the two in these accounts.

The SFC's investigation revealed that the funds raised by Huahan had been misappropriated, and it was found that some of the funds were deposited into the accounts opened by BEL at the aforementioned brokerage firms, prompting the action taken.

The SFC also referred the case to the police's Commercial Crime Bureau for follow-up. The police previously successfully prosecuted Huahan's former Chief Financial Officer and Company Secretary for money laundering related to the misappropriation of funds. In light of this, the SFC withdrew the restriction notices so that the liquidators of BEL (currently undergoing liquidation) could return the restricted assets to the affected individuals.

The three brokerage firms are not the subjects of the SFC's investigation, and the restriction notices do not affect their operations or their other clients

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