China Stocks Fall for Third Day as CSRC Starts New Margin Probe
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China’s stocks fell for a third day, sending the benchmark index to a one-week low, amid speculation increased regulatory scrutiny of margin loans will spur some leveraged investors to reduce holdings.
Citic Securities Co. and Haitong Securities led declines for financial companies with losses of at least 2.3 percent. The securities regulator plans a new round of checks into the margin-lending businesses of brokerages, the Xinhua News Agency reported Wednesday night. Trainmaker CSR Corp. and China Railway Group Ltd. rose after the government said it will promote railway firms’ overseas investments.