China Launches First New Domestic Securities Firm in Ten Years

​China on Monday (9 November) launched its first new domestic securities firm in a decade, Yongxing Securities, reports Caixin.

The company was set up in March to take over the securities-related assets of CEFC Shanghai Securities, whose business licenses were revoked by the CSRC (China Securities Regulatory Commission) last year after the firm illegally provided financing to its parent CEFC Shanghai International Group and its related parties.

CEFC Shanghai Securities Co also carried out illegal asset management business, and was unable to reestablish the minimum thresholds for net capital and risk management as required by the regulator.

CEFC Shanghai International was declared bankrupt by a Shanghai court in March, along with its parent company CEFC China Energy, the fallen energy and financial conglomerate controlled by secretive tycoon Ye Jianming.

Ye was placed under investigation in 2018 for alleged economic crimes.

With registered capital of CNY 2 billion, Yongxing Securities runs businesses including brokerage, securities underwriting and investment consulting.