OTC board names firms, brokers that violate rules

    THE operator of China’s New Third Board, the country’s leading over-the-counter (OTC) equity exchange, named 10 firms and five underwriters that have violated rules since 2014, the Securities Times reported yesterday.

    Most of the misbehaviors were related to incomplete or false disclosures by firms traded on the National Equity Exchange and Quotations (NEEQ) and the failure by underwriters to catch such irregularities, the newspaper said. The firms named include Internet firm Keytec, AVIC New Materials and electrical equipment maker Zhongshi Electric Power, while several brokerages, including Qilu Securities and Citi Orient Securities have been criticized by the NEEQ for not having done proper due diligence.

    Chongqing Iron, Posco agree on steel ventures

    CHONGQING Iron & Steel Co. has agreed to set up two joint ventures with South Korean steel-making company Posco with a total investment of 6.2 billion yuan (US$998 million).

    Chongqing Iron said yesterday it will hold a controlling stake in a joint venture that makes cool-rolled steel plates for automobile and home appliances. Posco will hold a 51 percent stake in the joint venture that produces galvanized steel plates, while Chongqing Iron owns the remaining interest.

    Legend Holdings unit plans to sell bonds

    A UNIT of Legend Holdings Corp. is seeking to raise up to 500 million yuan (US$80.5 million) in a bond issuance in China to fund operational development and repay debt.

    Legend Holdings, which holds the largest stake in personal-computer maker Lenovo Group Ltd., said its 92 percent-owned Zhengqi Anhui Financial Holdings Co. plans to submit an application to China’s securities regulator for the issuance of a corporate bonds. The proposed bonds have a maturity of three years, it said.

    BoCom to let HSBC name vice chairman

    BANK of Communications Co. (BoCom) plans to let HSBC Holdings name a vice chairman to its board as the Shanghai-based lender restructures its ownership to give private capital a bigger role, according to people with knowledge of the matter.

    HSBC, which owned 18.7 percent of BoCom as of March, hasn’t finalized the candidate for the appointment yet, the sources said. The vice chairman picked by HSBC will probably be installed by the end of September, one of the sources said.