New Brokerage Takes Over Fallen CEFC Securities
What’s new: Yongxing Securities Co. Ltd., China’s first new domestic securities firm in a decade, started operations on Monday, according to a statement (link in Chinese) from the Securities Association of China, an industry group.
What’s the background: The company was set up in March to take over (link in Chinese) the securities-related assets of CEFC Shanghai Securities Co. Ltd., whose business licenses were all revoked by the top securities regulator last year. The watchdog found the brokerage had contravened regulations including illegally extending financing to parent company CEFC Shanghai International Group Ltd. and its affiliates.
CEFC Shanghai International was declared bankrupt by a Shanghai court in March, along with its parent company CEFC China Energy Co. Ltd., the fallen energy and financial conglomerate controlled by secretive tycoon Ye Jianming. Ye was placed under investigation in 2018 for alleged economic crimes.
With registered capital of 2 billion yuan ($303 million), Yongxing Securities runs businesses including brokerage, securities underwriting and investment consulting, according to its website (link in Chinese).
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