Like other brokers in the same period, Huaxia Securities later fell into unrestricted expansion, invested in various industries, and then illegally occupied the village. Later, he was deeply trapped in the guarantee and illegally entrusted financial management, causing huge losses to the company.
In addition to misappropriating customers' deposits, Huaxia Securities is still raising funds on a large scale, and even increasing capital and shares. Because of the high financial cost, it is difficult to clean up in the end. On June 5438+February 65438+May 2005, the China Securities Regulatory Commission and the Beijing Municipal People's Government issued a document to stop the securities business activities of the company and its subsidiaries, the securities business department and the securities service department, and revoke the business license of Huaxia Securities Company.
In August 2005, CITIC Securities and China Yin Jian Investment Co., Ltd. * * jointly established CITIC Jiantou Securities Co., Ltd. and Jiantou CITIC Asset Management Co., Ltd. to receive all securities business, related assets and non-securities assets of Huaxia Securities respectively. The name of Huaxia Securities Company remained, but it became a shell company without any business and assumed the debts of the original Huaxia Securities.
According to a person from Beijing No.2 Intermediate People's Court who accepted the bankruptcy case of Huaxia Securities, the bankruptcy process of Huaxia Securities was not long. After the "three stops" stopped in September last year, Zhongke Securities was officially undertaken by Beijing No.2 Intermediate People's Court. By July 3rd, the first property distribution has been made, with the amount of 654.38+0.5 billion yuan, mainly involving trade unions, social security funds, provident funds and other institutions.
This distribution is mainly aimed at some specific situations in Neijiang and other places in the Sichuan earthquake zone: some victims need to repair their houses. Therefore, the court chose to conduct the first property distribution in the pre-Olympic period. Part of the property has been distributed to the parties.
The source also introduced that Huaxia Securities was accepted by Beijing No.2 Intermediate People's Court in July, and the preliminary clean-up work of the case was carried out by the liquidation team, and Cinda Assets was responsible for it. In view of this situation, the court appointed Cinda Assets as the bankruptcy administrator.