SHANGHAI May 19 China's securities regulator said on Friday it would suspend the launch of Sealand Securities new asset management products for a year and halt other operations after a probe into its business found its internal management \"chaotic\". <\/p>\n
\"The probe found that Sealand Securities has problems including chaotic internal management, ineffective compliance and risk management, and many cases of misbehaviors,\" the China Securities Regulatory Commission (CSRC) said in a statement posted on its microblog. <\/p>\n
The regulator added it would suspend Sealand Securities' new account openings and bond underwriting businesses for a year. <\/p>\n
The penalties mark the latest move by regulators to clean up the financial sector, with a focus on shadow banking and excessive borrowings that fuel speculation in risky investments. <\/p>\n
Sealand Securities' executives could not be reached for comment after Reuters put in several calls to the brokerage late on Friday. <\/p>\n
CSRC's probe into Sealand Securities' bond trading and asset management business came in the wake of a scandal last December that triggered a rout in China's bond market. <\/p>\n
The scandal involved \"forged\" bond agreements which the CSRC said involved deals worth about 20 billion yuan ($2.90 billion) and 20 financial institutions. <\/p>\n
In a separate statement, CSRC said it punished Sinvo Fund Management Co after a probe found the mutual fund house had lax risk control and management, resulting in defaults in a bond-related investment scheme last December. <\/p>\n
Calls to Sinvo were not answered. ($1 = 6.8897 Chinese yuan) (Reporting by Samuel Shen and John Ruwitch; Editing by Jacqueline Wong) <\/p>\n
TOKYO Confidence among Japanese manufacturers receded in May for the first time in nine months after hitting a decade-high level April, a Reuters survey found, showing guarded optimism in a nascent export-led economic recovery. <\/p>\n
* April manufacturers' sentiment index +24 vs +26 in April Service-sector index +30 in May vs 28 in April <\/p>\n
TOKYO Former Federal Reserve Chairman Ben Bernanke said on Wednesday the Bank of Japan may need to coordinate with the government's new fiscal spending program by allowing inflation to overshoot its consumer price target. <\/p>\n
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China regulator punishes Sealand Securities for "chaotic" management - Reuters<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" SHANGHAI May 19 China's securities regulator said on Friday it would suspend the launch of Sealand Securities new asset management products for a year and halt other operations after a probe into its business found its internal management \"chaotic\". \"The probe found that Sealand Securities has problems including chaotic internal management, ineffective compliance and risk management, and many cases of misbehaviors,\" the China Securities Regulatory Commission (CSRC) said in a statement posted on its microblog. Continue reading