Asia

China brokerage shares face yet another challenge

China brokerage shares face yet another challenge

Shares of Chinese brokerage Citic fall on police probe

Shanghai market

Image copyright
AFP

Image caption

Mainland Chinese shares have lost nearly 40% of their value since mid-June

Shares of China's largest brokerage, state-owned Citic Securities, fell as much as 4% after it said three executives, including its president, were under police investigation.

The executives are being investigated for suspected insider trading and "leaking inside" information.

The probe comes as Beijing intensifies the scrutiny on irregular stock trading that has rocked Chinese shares.

Mainland Chinese shares have lost about 40% of their value since mid-June.

Those being investigated are Cheng Boming, the general manager and president of Citic since 2012, Wang Jinling, the vice manager of information technology, and Yu Xinli, the head of operational management, the company said in a statement on the Shanghai stock exchange website.

Last month, four other senior executives admitted to insider trading, according to state media.

Citic's Shanghai and Hong Kong listed shares were down over 2% on the news on Wednesday. Its Shanghai listed shares have lost over 60% of their value so far this year.

Chinese regulators have been cracking down on alleged market manipulation intensely among other restrictive measures since mainland shares started their steep slide downwards in June.

Click to add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Asia

More in Asia

Premier Li urges China, Vietnam to maintain maritime stability

imaegineSeptember 16, 2015

News Analysis: New reforms poise to open China’s borders and business

imaegineSeptember 16, 2015

Interview: U.S. expects Xi’s visit to be great success — Kissinger

imaegineSeptember 16, 2015

Malaysia prosecutor found dead in drum

imaegineSeptember 16, 2015

Government supporters rally in Malaysia

imaegineSeptember 16, 2015

VIDEO: Second chance for Mass shooting survivor

imaegineSeptember 16, 2015

Innovation plays important role in China-EU cooperation: Chinese vice premier

imaegineSeptember 16, 2015

Descent into hell: Mumbai’s dehumanised sewer workers

imaegineSeptember 16, 2015

The troublesome quest to safety for Syria’s middle class

imaegineSeptember 16, 2015