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China Brokers Tumble as Citic Staff Detained, Rescue Costs Grow

  • Four Citic executives made confessions, state news agency says
  • Brokerages said told to stump up another 100 billion yuan
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China Markets End Volatile August in Continued Slide

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China’s brokerages tumbled after four Citic Securities Co. executives were detained and people familiar with the matter said the industry was told to contribute another 100 billion yuan ($15.7 billion) to a stock market rescue fund.

Citic executives including managing directors Xu Gang and Liu Wei admitted alleged insider trading, the state-run Xinhua News Agency said. The nation’s largest brokerage fell as much as the maximum 10 percent percent in Shanghai and slid to the lowest since May 2014 in Hong Kong. A Citic press officer declined to comment.