Police target China's biggest brokerage, shares slide again

Tue Sep 15, 2015 11:12am EDT
 
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By Samuel Shen and Pete Sweeney

SHANGHAI (Reuters) - Chinese police are investigating senior managers at CITIC Securities, the country's biggest brokerage, the company said on Tuesday, as Beijing intensifies its scrutiny of irregular stock market activity following heavy losses since June.

The news emerged on another bad day for shares, which dropped by almost 4 percent in a further blow to hopes that a slew of regulatory measures issued by Beijing over the past three months had brought some stability to prices.

Authorities have been alarmed by the steep equities selloff, which they suspect is linked to alleged market manipulation but has also been triggered by global concerns over slowing growth in the world's second-largest economy.

Among the key players in Beijing's sights is CITIC, where Cheng Boming, general manager and executive director since 2012, and Wang Jinling, vice manager of the information technology center, are both suspected of insider trading and leaking information, the company said.

Since the stock market selloff, authorities have taken an increasingly tough line on alleged manipulation, netting even journalists, social media users and regulators.

In August, four senior executives from CITIC confessed to insider dealing, state media said.

WAITING FOR MORE LOSSES   Continued...

 
A woman walks past a signboard of CITIC Securities at its head office in Beijing March 27, 2013. REUTERS/Kim Kyung-Hoon