Stocks plunge as investigation into brokers widens
Stocks plunged by the most in three months on Friday, as some of the country’s largest brokerages came under regulatory probes.
Brokerages led the decline, as an industrial gauge slumped 9.4 percent. Haitong Securities suspended trading as Reuters and Caixin reported it became the latest brokerage to come under investigation.
CITIC and Guosen Securities tumbled by the daily limit of 10 percent after announcing they were under probe by the China Securities Regulatory Commission (CSRC) for alleged rule violations and would cooperate with the regulator. About 17 other brokerages also fell by 10 percent on Friday.