Beijing Peking University Founder Group, China's second largest personal computer maker, has moved to take a controlling stake in Zhejiang Securities, according to sources at the troubled south China brokerage reported by South China Morning Post. Founder was waiting for regulatory approval to acquire a 51 per cent stake from the brokerage's largest shareholder, Zhejiang International Trust and Investment Corp. If approved, this would be the first time a Chinese company had taken a controlling stake in a brokerage. Existing brokerages usually have a scattered shareholding structure, with other firms holding minority stakes for investment purposes. Zhejiang Securities has 40 shareholders.
The brokerage's proprietary trading licence was revoked and a Yn503m fine imposed by the China Securities Regulatory Commission last December after it was accused of numerous offences, including misappropriation of clients' funds and irregularities in trading. The company has filed an appeal against the CSRC's action in the Beijing High Court.