Deep losses, scandal face bond dealer

Firm says it is willing to take responsibility and its total credit risk position is under control

China's top securities watchdog said on Friday that it will step up scrutiny of the internal controls and risk management of the country's investment banks, after a Shenzhen-listed securities firm said it is facing heavy losses in a bond financing scandal.

The regulator's comment came after the Shenzhen-listed Sealand Securities Co was involved in leveraged bond financing deals totaling 16.5 billion yuan ($2.4 billion) that have exposed the company to a huge potential loss.