Date
22 July 2017
CITIC Securities is among the brokerages being probed by mainland authorities for suspected violation of rules in relation to margin trading contracts. Photo: Xinhua
CITIC Securities is among the brokerages being probed by mainland authorities for suspected violation of rules in relation to margin trading contracts. Photo: Xinhua

China brokerages under scanner over margin trading deals

CITIC Securities (06030.HK, 600030.CN) and some other mainland brokerages said on Sunday that they are being probed for suspected rule breaches related to the signing of margin trading contracts.

In separate filings, CITIC Securities, Haitong Securities (06837.HK, 600837.CN) and Guosen Securities (002736.CN) said the securities regulator is looking into possible violations of rules on margin trading contracts with clients, Reuters reported.

CITIC Securities, China’s largest brokerage, said it is operating normally even as authorities conduct an investigation.

Smaller rival Haitong Securities said in its statement that it will continue to comply fully with its disclosure obligations.

Haitong, along with Guotai Junan Securities (601211.CN), is also being probed by anti-corruption investigators, China’s Xinhua news agency reported last week.

The Shanghai stock market’s benchmark index plunged more than 5 percent on Friday following news of the investigation into the prominent brokerages.

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CG/RC

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