Beijing’s securities regulator on Friday ordered four Chinese brokerages and financial institutions to fix their overseas subsidiaries and special purpose vehicles.
The China Securities Regulatory Commission (CSRC) said Everbright Securities, CITIC Securities, Haitong Securities and China International Capital Corporation (CICC) failed to complete the adjustments of equity structures of their foreign units on time.
The Chinese brokerages have up to three months to submit the improvement reports to CSRC, the statement added.
In April, the CSRC suspended Haitong Securities from conducting bond investment advisory work for institutional investors due to what it called lax risk control measures.
The regulator said Haitong did not effectively control and fend off risks when the Chinese brokerage conducted bond business, and that it had “caused serious negative effects to the market”.
China’s interbank bond market regulator warned the Chinese brokerage over similar violations in January.
At that time, Haitong said it would improve internal governance.
Last December, CSRC described CICC as negligent in arranging a $1.8 billion initial public offering for computer giant Lenovo’s on Shanghai’s tech-heavy Star Market, which was withdrawn a week after it was filed.
- Reuters, with additional editing by George Russell
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