BEIJING Dec 3 The chairman of China's
securities regulator condemned "barbaric" leveraged company
buy-outs by some asset managers using illegal funds, according
to a statement posted on the China Securities Regulatory
Commission (CSRC) website on Saturday.
"You've ultimately become a robber in the industry, and that
is unacceptable," CSRC chairman Liu Shiyu said during his
strong-worded speech at a meeting held by the Asset Management
Association of China.
Liu said China's capital markets had seen a series of
"abnormal phenomena" lately, challenging the bottom line of
China's financial law and regulations.
"That is not financial innovation," Liu said.
In a commentary responding to Liu's comments on Saturday,
financial magazine Yicai said the CSRC might have already
collected evidence of illegal insurance funds used in some
buy-out deals via tender offers or banner acquisitions, citing
unnamed sources in the industry.
(Reporting by Yawen Chen, Samuel Shen and John Ruwitch; Editing
by Nick Macfie)