SHANGHAI, Dec 20 (Reuters) - China’s securities regulator has started an inspection into the bond-related business of Sealand Securities, the company said on Tuesday, the latest scandal that threatens to trigger further volatility in the country’s debt market.
Sealand said in an exchange filing that the Guangxi branch of the China Securities Regulatory Commission (CSRC) sent out a special team to start on-site inspection on Dec. 15. The brokerage said it would fully cooperate with the inspection.
Local media has reported that Sealand Securities defaulted on a bond transaction with a bank. In a previous statement, the brokerage said its company seal had been forged by two employees in the transaction. (Reporting by Samuel Shen and John Ruwitch)