Chinese securities firm Haitong Securities’ bond investment advisory business has been suspended for 12 months. The China Securities Regulatory Commission (CSRC) announced its decision late on Wednesday, citing a lack of effective risk control. The review by the CSRC was triggered last November by the highly-publicized default of state-run coal miner Yongcheng Coal Electricity Holding Group Co., whose bond sales were managed by Haitong. The authorities had also imposed short-term bans on on two local credit rating agencies and launched probes into other banks and accounting firms involved in irregularities related to bond sales. As part of the latest announcement by the CSRC, it will also suspend Haitong Asset Management’s advisory service for certain PE products for 12 months.
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