Galaxy Securities Says Staff Cooperating With Authorities
China Galaxy Securities Co. the top underwriter of Chinese corporate debt in 2011, said three employees were directed to cooperate with the nation’s judicial authority on matters the firm didn’t specify.
Dai Xu, chief officer of the Beijing-based company’s fixed-income business, was among the staff members who were asked to assist “due to personal reasons,” the company said in a Hong Kongexchange statement yesterday.
Galaxy said its business operations remain normal and it will provide more information “in a timely manner.” A press officer declined today to elaborate on the statement, which didn’t draw any link with probes into Chinese brokerages.
“At this stage, even the company itself may not fully understand what is going on,” Eason Yi, a Hong Kong-based analyst at CIMB Securities Ltd., said by phone today.
Galaxy Securities in August denied it had been approached by authorities in relation to any investigation, according to an Oriental Morning Post report at the time.
China’s securities regulator and the National Audit Office are reviewing whether consulting fees paid by bond underwriters played a role in winning mandates, Caixin magazine reported last month.
The brokerage said last month it plans to sell up to 1.69 billion shares in Shanghai to boost working capital, after raising about $1.1 billion in a Hong Kong initial public offering in May 2013.
Source: bloomberg- Galaxy Securities Says Staff Cooperating With Authorities
