(Adds details, quotes)
SHANGHAI Dec 22 Sealand Securities, the Chinese
brokerage at the heart of a bond scandal that has rocked
markets, said on Thursday it has reached "consensus" with its
counterparties to jointly share potential losses stemming from
"forged" bond agreements totaling no more than 16.5 billion yuan
The statement, which came a day after Sealand promised to
take responsibility, should further help ease fears of a
liquidity crunch stemming from a breakdown of trust between
In the statement to the Shenzhen Stock Exchange, Sealand
said it was operating normally and that liquidity risks were
News about the forged bond agreements triggered volatility
in China's bond market.
"The bonds will continue to be held by all counterparties,"
Sealand Securities said, adding it would take "full
responsibility" for bonds issued by private institutions, but
will further negotiate with counterparties to share potential
losses from government-backed debts.
On Wednesday, the brokerage said it would take
responsibility for the bond agreements, after earlier blaming
two of its employees.
The filings by Sealand in the past two days have "improved
market sentiment", said a trader at a Chinese bank in Shanghai.
Sealand Securities said on Tuesday that it was inspected by
the country's top securities regulator.
($1 = 6.9466 Chinese yuan)
(Reporting by Winni Zhou and David Stanway; Editing by Richard