Regulator internal probe uncovers 103 problems

    AN internal investigation conducted over the past two years by the China Securities Regulatory Commission (CSRC) has uncovered 103 problems at the agency’s individual offices, a statement released by China’s anti-corruption watchdog said yesterday.

    The statement posted on the website of the Central Commission for Discipline Inspection cited honesty, cash management and overpayment problems among the issues uncovered in the CSRC’s internal affairs probe, without providing further details.

    CITIC Securities halts plans to issue bonds

    CITIC Securities Co., China’s biggest brokerage, has halted plans for a corporate bond issue that domestic media said aimed to raise billions of dollars, a statement posted on the website of the country’s securities regulator showed, amid reports that the Shanghai and Hong Kong-listed brokerage faces increased scrutiny.

    The statement by the China Securities Regulatory Commission, dated Dec. 8, said the watchdog had received a notice from CITIC Securities requesting its application to issue bonds be withdrawn. No reason for the request was given in the statement.

    Firm may be unable to make bond payment

    AN unlisted chemical fiber producer, Zhejiang Huaxin Advanced Materials Co., may be unable to pay principal and interest due on a collective 500 million yuan (US$77.41 million) bond maturing Friday next week.

    In a statement posted on the website of China’s interbank bond market operator, the firm said Tuesday that due to “very tight” cash conditions, it was unclear whether interest and principal on the bond could be paid on time. If the firm is unable to make required payments on time then, the bond guarantor, China Bond Insurance Co., would be responsible, the statement said.

    JP Morgan fined for dark pool, control failures

    HONG KONG’S securities watchdog said Tuesday it had fined JP Morgan HK$30 million (US$3.87 million) for a range of control failures, including breaches in its dark pool business.

    The U.S. bank is the latest institution to fall foul of a broader crackdown by the Securities and Futures Commission (SFC) on electronic trading and dark pools in Hong Kong. The SFC said in a statement that the bank’s Hong Kong broking business had mistakenly routed principal orders into its off-exchange dark pool trading platform, despite advising the SFC the pool only matched client trades.