CSRC Head Slams ‘Bandit’ Firms Raising Funds Improperly for Risky Investment

(Beijing) — Borrowing money from unsuspecting investors to fund risky acquisitions makes a company a “bandit,” Liu Shiyu, chairman of the China Securities Regulatory Commission, said at a meeting held by China’s Asset Management Association in Beijing on Saturday.

This is the first time the CSRC has publicly expressed disapproval of highly leveraged purchase of listed company stock, which makes use of funds from small investors, such as people who buy banks’ wealth management products.