Established in 1992, China Southern Securities (“CSS”) was one of the largest securities brokerages in China. In 2002, CSS increased its registered capital to RMB 3.458 million.
In early 2004, due to poor management and alleged misuse of client funds, the Shenzhen local government took over the control of CSS. The China Securities Regulatory Commission revoked the securities business license of the brokerage and, as a result, its operations closed down on 29 April 2005.
On 7 July 2006, Shenzhen Lanbowan Investment Co., Ltd filed a bankruptcy petition against CSS to the Court. The Court accepted the petition.
On 16 August 2006, the Court legally declared that CSS is insolvent and pronounced the brokerage bankrupt. The Court appointed a liquidation group to carry out the liquidation of CSS.
The liquidation of CSS is close to completion according to Huo Ming, the President of Shenzhen Intermediate People’s Court.