Citic, Haitong, Guosen Probed on Alleged Margin-Trading Breaches
- China’s regulators investigating brokerages after summer rout
- Firms suspected of breaching rules on signing client contracts
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China’s securities regulator is investigating Citic Securities Co., Haitong Securities Co. and Guosen Securities Co. over alleged breaches of rules on margin and short-selling contracts.
The China Securities Regulatory Commission probes involve contracts the three brokerages signed with clients on margin finances and short-selling, according to exchange filings by the companies Sunday. The firms said their operations will remain normal and they will cooperate with the regulator.