China's securities watchdog announced on Sunday its decision to close down Guangdong Securities Co for severe irregularities.
The company is the 15th security firm the watchdog, China Securities Regulatory Commission (CSRC), has shut down since August 2004 when it launched a nationwide campaign to crack down on irregularities in the country's problem-plagued securities sector.
Saddled with extraordinary risks, Guangdong Securities cannot realistically continue its business, and the CSRC has canceled its business license and ordered its closedown, according to a statement posted on the commission's official website.
The move was designed to safeguard the integrity of the law and maintain the stability of the securities market and the legitimate interests of investors and creditors.
The CSRC has commissioned the trusteeship and liquidation of Guangdong Securities to the newly created China Securities Investor Protection Fund.
Zhuang Xinyi, vice chair of the commission, said last week it plans to make its securities firms financially sound and responsive and improve laws and regulations by the end of next year.
The campaign is part of a bigger project that began in early 2004 to create a sound environment for the country's securities market, which has remained sluggish for the fourth consecutive year despite the country's rapid economic growth.
Many securities firms have found themselves deep in the red as a result of bad stock market investments and mismanagement, which experts say could have severe implications for the country's 16-year-old securities market.
(Xinhua News Agency November 7, 2005)
