Two hundred of the 1,300 mainland-listed firms have had funds requisitioned by their state-owned parent companies but now these majority shareholders have to pay the money back. The China Securities Regulatory Commission has ruled that the money belongs to shareholders and that parent companies cannot use listed companies as private banks, the South China Morning Post reported. Officials said they are willing to back up this order with legal action and the suspension of any activities that require approval from the commission, such as share sales. Companies that borrowed up to US$1.2 million must return the funds before the end of June, while those who borrowed more have until the end of the year to follow suit.
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