China securities regulator chairman condemns "barbaric" company buy-outs by asset managers

[December 03, 2016]  BEIJING (Reuters) - The chairman of China's securities regulator condemned "barbaric" leveraged company buy-outs by some asset managers using illegal funds, according to a statement posted on the China Securities Regulatory Commission (CSRC) website on Saturday.

Liu Shiyu, Chairman of China Securities Regulatory Commission (CSRC), attends a news conference on the sidelines of the National People's Congress (NPC) in Beijing, China, March 12, 2016. REUTERS/Jason Lee

"You've ultimately become a robber in the industry, and that is unacceptable," CSRC chairman Liu Shiyu said during his strong-worded speech at a meeting held by the Asset Management Association of China.

Liu said China's capital markets had seen a series of "abnormal phenomena" lately, challenging the bottom line of China's financial law and regulations.

"That is not financial innovation," Liu said.

In a commentary responding to Liu's comments on Saturday, financial magazine Yicai said the CSRC might have already collected evidence of illegal insurance funds used in some buy-out deals via tender offers or banner acquisitions, citing unnamed sources in the industry.

(Reporting by Yawen Chen, Samuel Shen and John Ruwitch; Editing by Nick Macfie)

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