Broker rises from ashes of bankruptcy
DATON Securities Co has resurrected itself from bankruptcy and is searching for talent in its quest to move into the sector’s first tier, industry sources said yesterday.
The Liaoning-based broker, China’s first securities firm to revamp via bankruptcy, is recruiting a general manager and
four deputy general managers, according to people familiar with the situation.
The broker has received several dozen applications and may start interviews with candidates early next year, the sources said.
Daton re-registered recently with 500 million yuan (US$63.9 million) in capital after going bankrupt in August as part of a regulatory edict to reform troubled securities houses, the sources said.
The broker, which was set up in July 2001 with 1.12 billion yuan in registered capital, logged a loss of 133 million yuan in 2005, extending combined losses since it began operations to 1.11 billion yuan, the sources said.
Regulators decided to let Daton go bankrupt to facilitate its overhaul, they said. Original shareholders, including Beida Jade Bird Group, quit during the reform process, while new investors including Dalian Huaxin Trust & Investment Co have joined in, the sources said.
“Huaxin is now the broker’s biggest stakeholder, but Daton’s overall shareholding structure is still very fragmented,” said a source close to the company.
After the restructuring, Daton has net assets of 505 million yuan and net capital of 445 million yuan, which still lags a threshold of 1.2 billion yuan required by regulators to become one of the country’s top-tier brokers, according to the sources.