Sealand Blames Rogue Traders for Disputed Bond Deals

(Beijing) — Sealand Securities has blamed rogue traders for disputed bond deals with more than 20 financial institutions that are now facing huge losses.

The firm has been caught in the spotlight in a rout that rocked China’s bond market last week, as rumors surfaced online that it was disavowing the ownership of bonds originally worth 10 billion yuan ($1.44 billion) on grounds that the stamp used for the purchases was fake. This left the bank that was temporarily holding the bonds for Sealand with a huge paper loss, according to the rumor, which was widely circulated among bond traders on Wednesday.