CITIC Securities president probed on insider trading

September 16, 2015 10:18
Senior executives of CITIC Securities are being investigated over possible insider trading. Photo: Bloomberg

China has expanded its probe into possible insider trading by senior executives of CITIC Securities Co. Ltd.

Cheng Boming, president of the state-owned securities firm and chairman of its international division, is suspected of leaking and trading on unspecified inside information, CITIC Securities said in a statement.

Police are also investigating two other members of the firm who have senior operational roles and are suspected of similar activity, the Wall Street Journal reported.

Authorities have been questioning senior executives of the country’s leading brokerage following sharp drops in China’s stock market this year.

In July the Ministry of Public Security said Deputy Minister Meng Qingfeng was leading an investigation into “abnormal volatility” in the market that resulted from what the police agency called “malicious short selling of stocks and stock indices”.

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