CHINA Galaxy Securities Co., one of the country’s largest brokerages, yesterday said its head of fixed income and two other employees have been asked to cooperate with the nation’s judicial authority on matters the firm didn’t specify.

    The news sent the Hong Kong-listed stock sliding more than 5 percent yesterday to its lowest level since Aug. 29, marking its biggest daily decline in nine months.

    Fixed income chief Dai Xu’s role and duties have been temporarily assumed by executive director and president Gu Weiguo and business operations remain normal, the brokerage said.

    China Galaxy said it will release further information on developments in accordance with regulatory requirements. It did not specify what type of judicial authority and gave no further details.

    Dai is not the only bond market figure to have gained the attention of the authorities.

    In August, the country’s top prosecutor said a former director at China’s economic planning agency, Zhang Dongsheng, who oversaw corporate bond issues between 2003-2006, was under investigation — one of a swathe of officials to be implicated in an anti-corruption drive.

    Beijing-based China Galaxy said this month that it is seeking to raise about 7.6 billion yuan (US$1.2 billion) in a Shanghai listing.

    In the first half of the year, it was the lead underwriter for 27 bond-financing projects worth a combined 37.5 billion yuan, an increase of 60 percent from the same period a year ago.

    (SD-Agencies)