Photo: Cover image of a viral video featuring a student working at a top Chinese securities firm, CSC, during a summer research program

A top Chinese securities firm found itself in hot water after a student who claimed to be the company's intern recently uploaded a daily-work video during a summer research program. The video led to the leakage of sensitive information within the company, sparking widespread attention from both within and outside the industry and plunging the securities firm into a public relations maelstrom.

The securities firm, China Securities Co., Ltd. (CSC), stated on Saturday evening that the student from Huazhong University of Science and Technology was introduced into the company's research program by the head of a team in the investment banking department in violation of regulations, and the company has removed the person in charge of the team and will hold the head of the investment banking department accountable. 

The response came after a short video titled "Fresher from a top university interning at an investment bank for a day" went viral on social media platforms in recent days. The video showcased the student surnamed Wang, claiming to work at CSC, driving a Porsche sports car to work and playing golf after hours.

What caught public attention was not only the student's extravagant behavior of flaunting wealth, but also the inclusion of several ongoing IPO projects being run by CSC in the video, leaking sensitive client information. 

Many netizens questioned the compliance and risk control issues within CSC. 

Following the widespread attention to the "wealth flaunting" incident involving Wang, questions arose about his entry into the securities firm despite studying a sports major. 

Rumors circulated online claiming his father was a chairman of a fund management company and that his father was both a businessman and an official. 

The company said in the statement that his father is not a public official and has never worked in financial regulatory departments. 

As the video sparked wide controversy online, on Friday, CSC had responded by terminating the student's research program.

However, the response failed to tamp down speculation around the incident.

In video the student also leaked a page of handwritten working notes which several netizens  were quick to analyze, with the first sentence appearing to read "make a unified version of income"  suggesting potential financial fraud involved in a CSC project.

CSC responded in its Saturday statement that the information related to employee work notes was part of routine due diligence records, and following an investigation, there was no evidence of assisting in financial fraud. 

The company assured that they would be open to regulatory oversight to ensure that their business practices are in compliance with relevant laws. Also, it vowed to reflect seriously, implement solid reforms, and take comprehensive measures to further improve the company's management system.

Chinese media outlet CLS.cn reported on Friday evening, as the central figure in the public opinion storm, Wang responded that the materials shown in the video were distributed by CSC employees as study materials without informing him of their confidential nature. He refuted rumors about his family and claimed the legality of the car shown in the video.

An official from Huazhong University of Science and Technology also responded that they are verifying the specific identity of students with the same name.

A Beijing-based insider in securities industry told the Global Times on Sunday that in the financial industry, information security is of utmost importance, as any negligence in any aspect could lead to immeasurable consequences. 

The insider revealed that there are often a number of "unofficial interns" in securities companies, who are hired through non-standard recruitment channels. These interns receive relatively little scrutiny in the early stages, and the lack of sufficient guidance from the company may lead to management oversights.

According to a legal analysis, based on relevant laws and regulations, if the leaked information results in economic losses for the client, the client has the right to demand compensation from CSC; if the leaked information involves illegal activities such as trade secrets, CSC Securities may also face administrative penalties or criminal liability. 

The student's release of the research video at the investment bank has sparked widespread controversy. What exactly did he touch upon? 

Market economies sometimes produce some super-rich individuals, which most people understand as legal wealth must be protected, some Chinese observers said.

However, people are particularly averse to the untimely flaunting of wealth by rich children, especially when it affects aspects of fairness and justice in education and employment.

The fight against corruption is ongoing, and those providing clues about the flaunting of wealth must be thoroughly investigated, which not only strengthens the anti-corruption defense but also provides the public with the necessary explanations and reassurance, observers said.