(Yicai Global) Jan. 18 -- Pacific Securities has been suspended from registering new asset management product for the next three months by China’s securities watchdog for raising the scale of a fund in an unlawful way, the Chinese brokerage said yesterday.
Pacific Securities was found to have infringed regulations when it increased the size of an asset management product that it set up in March 2017 as the maturity periods and valuation methods did not conform with the rules, the firm said, citing the filing by the Chinese Securities Regulatory Commission’s arm in southwestern Yunnan province.
However, the penalty will only have a very small impact on profit and revenue and will have not affect the net value of the Kunming, Yunnan province-based firm's products, it said.
Pacific Securities logged CNY77.9 million (USD11.5 million) in losses in the first half of last year and asset management was one its few profitable business lines. But although revenue from asset management service charges more than doubled year on year to CNY62.2 million (USD9.1 million), it still only accounted for 8.4 percent of total revenue.
Pacific Securities’ share price [SHA:601099] was trading down 0.3 percent at CNY2.76 (USD0.41) as of 1.30 p.m. China time today.
Editor: Kim Taylor