Securities Regulators Probe Sealand Over Disputed Bond Deal

(Beijing) — Chinese securities regulators have started an investigation into a disputed bond deal involving Sealand Securities after the firm defaulted on a bond transaction, causing a crisis of trust in the interbank market.

The Securities Association of China, a self-regulatory organization for the industry, convened a meeting on Tuesday night to address the disputed bond deals. Dozens of financial institutions involved in the deals attended the gathering, which was presided over by Li Chao, deputy chairman of the China Securities Regulatory Commission (CSRC), and lasted for nearly five hours.