(Yicai Global) Jan. 31 -- Chinese regulators have opened an investigation into Chinese state-owned financial services firm Guosen Securities Co.'s role in the backdoor listing of Chengdu Huaze Cobalt & Nickel Material Co., which encountered capital control issues last year.

China Securities Regulatory Commission will probe claims that Shenzhen-based Guosen Securities violated securities laws in its advisory and sponsor role in the firm's takeover of Chengdu UnionFriend Network Co., the regulator said in a press briefing yesterday.

Guosen Securities did not confirm the project for which it is under investigation. However, it did stress that it is related to a matter when it served as an independent financial advisor for a listed company during a major asset sale, share issuance, as well as sponsor for relisting application from 2013 to 2014.

"The investigation shows that regulators have received some evidence of its failure to perform its obligations. Although it has been for years, original documents and evidence are still kept," said a person close to the China Securities Regulatory Commission. "It shows that regulators are paying more attention to performance of responsibilities by intermediaries and strictly restrain them," he added.

The CSRC will investigate Guosen Securities' role in issuing independent verification opinions on major asset reorganization of Chengdu UnionFriend related to its merger with Chengdu Huaze, and its issuance of recommendation letter for the listing of the merged company in January 2014.

However, Chengdu Huaze Cobalt&nickel Material failed to deliver its results as expected in 2013 and 2015 and Guosen Securities subsequently issued apologies twice. Chengdu Huaze Cobalt & Nickel Material was probed for information disclosure again in November 2015.