Three former leaders of the Nanfang Securities, a troubled securities brokerage firm, have been detained by the police, Xinhua learned on Tuesday.

The detained are Kan Zhidong, Liu Bo and Guo Yuanxian, who used to serve successively as president of the Nanfang Securities, which has been put under administrative custody for more than two years.

Before the detainment, 25 other responsible persons were also arrested, some of whom have already been convicted.

Founded in Shenzhen, a boomtown facing Hong Kong in South China's Guangdong Province in September 1992, the Nanfang Securities was once one of the three leading securities brokerage companies in the country.

By early 2002, the Nanfang Securities had expanded its shares to 3.46 billion yuan (about 426 million U.S. dollars) and transformed itself into a corporate entity with 56 share holders and limited liabilities.

However, Nanfang financial health began to deteriorate under haphazard management.

Administration of the brokerage was taken over by the China Securities Regulatory Commission (CSRC) and Shenzhen city government in January 2004. It was stripped of its business permit and told to shut down for violations and irregularities in April 2005.

Currently, it remains under liquidation.

Source: Xinhua