CHINA / National |
30 securities firms enter bankruptcy proceedings(Xinhua)Updated: 2006-11-13 17:14 BEIJING, Nov. 13 -- The China Securities Regulatory Commission has dealt with 30 failed securities firms since 2004 as part of its mission to overhaul the sector. The 30 firms will all enter bankruptcy proceedings, said Liu Yi, the CEO of China Securities Investor Protection Funds Corporation. CSRC chairman Shang Fulin said the mission is scheduled to windup in August 2007 and disposal efforts need to speed up. Only 5 of the failed securities firms have so far entered bankruptcy proceedings, the authority said. The recently released Bankruptcy Law authorizes financial regulators to report to the people's courts for permission to restructure or liquidate a financial institution which is facing bankruptcy, rather than waiting for the financial institution to enter bankruptcy proceedings of its own volition. Analysts say the law provides a secure legal foundation for courts to hear
bankruptcy cases involving financial institutions and will accelerate the
securities watchdog's efforts to dispose of failed companies.
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