China has dealt with 30 heavily indebted securities firms since 2004, said the China Securities Regulatory Commission on Thursday.

Of the total, 24 were closed or dissolved. The rest were subject to other solutions, such as capital infusions, stock ownership transfers or restructuring.

The commission said more than 90 percent of China's securities dealers now meet government requirements in financial conditions.

The government demands that the net capital of a Chinese security company must be at least 8 percent of its debts.

China's securities brokers have been found illegally appropriating customers' funds for investment, which often result in losses and company debt, especially in the previously bearish Chinese stock market.

The government plans to entrust investors' funds to commercial banks for independent management. The new system will be fully implemented out next August.

The recently rising stock market has boosted the profits of securities firms, which is expected to end the whole industry's consecutive losses for the past four years.

By the end of October, 92 of the 107 securities companies had recorded profits, with industry profits at 18 billion yuan (2.25 billion U.S. dollars), according to the commission.

The benchmark Shanghai Composite Index, a major index of Chinese shares, broke the 2,600-point mark on Thursday morning, mainly powered by bluechips.

The index continued climbing to close at 2632.990 points on Friday morning, 2.55 percent up from the previous close.

Source: Xinhua