Chief of Biggest Chinese Broker Swept Up in Stock-Rout Probe
- Investigation of Citic's Cheng adds to industry crackdowns
- China probing other executives after $5 trillion market losses
How Serious Is the Citic Securities Investigation?
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The president of China’s biggest brokerage has been swept up in a widening campaign to root out financial wrongdoing and assign blame for the nation’s $5 trillion stock rout.
The probe of Citic Securities Co. President Cheng Boming comes after the state-run Xinhua News Agency reported last month that four executives at Citic had admitted to so-called insider trading. The firm is part of Citic Group, the nation’s first state-owned investment corporation, which was set up in 1979 as part of paramount leader Deng Xiaoping’s push to modernize the country.