China probes brokerages for low-price bids in bond underwriting

[BEIJING] Several Chinese securities brokerages including Guotai Junan Securities were under investigation of an industry association for allegedly making unusually low bids to underwrite CNNC Financial Leasing's bonds.

The Securities Association of China would take "self-disciplinary measures" on the brokerages if any violations are found, the trade group said in a statement on its website on Sunday. The low-price bids had raised concerns in the market, according to the statement.

Other brokerages named in the probe were Haitong Securities, China International Capital, Ping An Securities, Shenwan Hongyuan Securities, Tianfeng Securities, Citic Securities and CSC Financial.

BLOOMBERG