There is default risk in margin trading and securities lending business. The controlling shareholder of Jinke Property Group Co.Ltd(000656) is passively reduced by Citic Securities Company Limited(600030) compulsory closing of positions and 452447 million shares

Jinke Property Group Co.Ltd(000656) announced on May 20 that the controlling shareholder of the company, Chongqing Jinke investment holding (Group) Co., Ltd. (hereinafter referred to as “Jinke holding”) informed that part of the company’s shares held in the guaranteed securities account for margin trading of Citic Securities Company Limited(600030) customers were forcibly closed by Citic Securities Company Limited(600030) from May 18 to May 19, 2022, with a passive reduction of 452447 million shares, accounting for 0.85% of the total share capital of the company. The reason for the passive reduction is that Citic Securities Company Limited(600030) forced closing and reduction of part of the company’s shares held by Jinke holding in Citic Securities Company Limited(600030) credit guarantee account in view of the risk of default in the margin trading business recently carried out by Jinke holding and Citic Securities Company Limited(600030) credit guarantee account.