A source from the China Securities Regulatory Commission (CSRC) said the three-year national risk governance program has been recently completed in hopes of making China a safer place to invest.  In total, 19 securities firms were closed, 31 adjusted, and another 104 met required standards.

The firms ordered to shut down were cited for violating securities law and rules; 27 of the 31 adjusted firms were reshuffled in a bid to put their businesses in order. Other troubled firms have also received punishments depending upon their violations.

A total of more than 10 million accounts have been liquidated among the securities firms.

Shang Fulin, chairman of the CSRC said that as the Chinese capital market was experiencing an institutional reform, the CSRC launched the across-the-board inspection movement to address a risk looming large in the securities industry.

“After the check-up, the risky financial activities that jeopardize investment safety, such as off-balance sheet deals, embezzlement of customers’ transaction funds, and illicit asset management, have been dealt with,” Shang said to the reporter with Chinanews.com.cn.

(China.org.cn by He Shan, September 3, 2007)