Regulators grab China brokerage
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BEIJING, China (Reuters) -- China Southern Securities, the country's fifth-biggest brokerage, has been taken over by regulators, a high profile victim of a crackdown on irregularities in the market.
"The China Securities Regulatory Commission and the Shenzhen government had decided to take over Southern Securities from January 2, 2004," the CSRC said in a statement carried in the China Securities Journal.
It added the decision was triggered by "illegal and irregular management operations and disorderly management."
The takeover was decided "in order to protect the legal interests of investors and debt holders," it said, adding the brokerage would be protected from creditors and continue to operate normally.
In 2002, China Southern Securities was China's fifth-largest brokerage by registered capital.
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