China Punishes Six Brokerages for Violating Margin-Finance Rules
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China punished six brokerages, including Great Wall Securities Co. and Huatai Securities Co., for violating rules on margin-finance and securities lending businesses.
Great Wall Securities was suspended from adding margin-finance and securities lending accounts for three months after selling services to unqualified investors and distributing so-called umbrella trust products, the China Securities Regulatory Commission said on its microblog Friday. Huatai Securities was told to fix the violation within a certain period, while Guosen Securities Co. was required to increase the frequency of internal checks.