China Said to Suspect Citic of Insider Trading During Rescue
- Preliminary probe said to find evidence of insider trading
- Citic says it hasn't been notified on nature of investigation
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A Chinese probe found evidence that Citic Securities Co., the nation’s biggest brokerage, engaged in insider trading connected to the government’s rescue of the stock market, people familiar with the matter said.
Investigators suspect that the brokerage used advance knowledge of government-orchestrated stock purchases to execute trades that benefited the firm, said the people, who asked not to be identified because the matter is private.