trending Market Intelligence /marketintelligence/en/news-insights/trending/acsu8tdzkmrej66aib9wvg2 content esgSubNav
In This List

Founder Securities H1 interim profit hit after client fails to repay losses

Blog

Banking Essentials Newsletter: 7th February Edition

Case Study

A Bank Outsources Data Gathering to Meet Basel III Regulations

Podcast

Private Markets 360° | Episode 8: Powering the Global Private Markets (with Adam Kansler of S&P Global Market Intelligence)

Blog

Banks’ Response to Rising Rates & Liquidity Concerns


Founder Securities H1 interim profit hit after client fails to repay losses

China's Founder Securities Co. Ltd. said Aug. 31 that its first-half profit was reduced by around 65 million yuan after it set aside an impairment expense of 87.1 million yuan when a client failed to repay trading losses.

The company has sued client Yang Rujun, as well as Jiasheng Construction Group, which acted as the former's guarantor, for failing to meet debt servicing obligations.

This was based on a contract signed in April under which Yang opened a margin financing and securities account with Founder Securities.

Under the lawsuit, Founder Securities is seeking a return of 136.8 million yuan in financing principal, as well as expenses, interest and litigation costs, among other things. The case has been accepted by the Higher People's Court in China's Hunan province, though it has not been heard.

The company added that the legal action has no significant impact on its business operations, financial status or solvency.

For the first half, Founder Securities posted profit attributable to shareholders of 205.8 million yuan.

As of Aug. 31, US$1 was equivalent to 6.83 Chinese yuan.