(Yicai Global) July 31 -- The Asset Management Association of China has put a six-month ban on a Chinese securities firm after the assets of three of its asset-backed schemes were misappropriated.

The ban, on Hengtai Securities Co. [HKG:1476], will begin on August 1, the AMAC said on July 28. This is the first penalty it has imposed since it implemented a filing system for asset securitization products.

The original rights holders of three asset management schemes managed by Hengtai put the money generated into regulated accounts as agreed, but later transferred the money out without investors' knowledge, the AMAC said, which leads to the risk of the assets being embezzled.

Asset securitization products filed with the AMAC have now exceeded CNY1 trillion (USD147 billion), however, unlisted asset-backed securities are generally less compliant than those filed with the association, and the risks of such products are mostly found in unlisted ones, an insider told Yicai Global.

In response, the AMAC held an asset-back securities committee in Beijing on July 26.

The committee will guide industry players to get more products listed and figure out how to improve the management of unlisted products, said Hong Lei, head of the AMAC.