Cinda Asset Management Corporation – one of four entities set up to sell off bad loans by state banks – is in discussion with Liaoning Securities in northeast China and Hantang Securities in Shenzhen to acquire their operations, the Financial Times reported, citing officials at the two brokerage firms. The officials said Cinda planned to combine the two troubled brokers with Hongyuan Securities, a Xinjiang-based firm in which is already has a 40% stake. The move could scuttle US investment bank JP Morgan’s year-long plans to buy into Liaoning Securities and is heightening international investment firms� fears of a ban on foreign investment in the country’s ailing financial markets.