New | Founder Securities unit given Hong Kong business licence

An unnamed wholly owned subsidiary of Founder Securities has won a Hong Kong business license from the Securities and Futures Commission (SFC), the securities company announced today on the Shanghai Stock Exchange website.

There were no further details available.

A mainland China court has notified the Shanghai-listed firm that it has transferred some of Founder Securities’ frozen assets to a special account which remains frozenby the court, Founder Securities disclosed in another Shanghai Stock Exchange announcement today.

The court, based in Kaifu district, Changsha, the capital of Hunan province, had frozen 17 accounts of Founder Securities totaling 1.77 billion yuan. The Kaifu court transferred funds from 8 of the 17 frozen accounts to the special account, Founder Securities said.

The 1.77 billion yuan asset freeze is part of a freeze of 3 billion yuan of Founders Securities’ assets requested by its second largest shareholder, Beijing Zenith Holdings. The two are involved in a bitter dispute.

On 24 December 2014, Founder Securities’ second largest shareholder, Beijing Zenith Group, has commenced arbitration proceedings against Founder Securities, seeking 3 billion yuan in compensation.