Monday, August 01, 2005
Fund house Jianyi take over bankrupt Southern Securites
China Jianyin Investment Ltd., an investment vehicle of China's central bank, will take over bankrupt China Southern Securities, part of a plan to revive the nation's fifth-biggest brokerage, reported Bloomberg.
The government invest 8 billion yuan for Jianyin to take over the investment banking unit and 74 branches of China Southern Securities.
The bankrupty was shut down last year due to the misusing of client funds and manipulated stocks. The central bank has already injected 8 billion yuan at that time to maintain its normal operation.
"Company suffers, then government will pay". The rule is now more and more popular. It applies to China Aviation Oil(Singapore) when it suffered from the $550 million deal; then the big four banks prepare for the IPO; Then the revitalization of stock market; and now securites house, and then what?