China to probe largest brokerage for alleged violation of rules

[BEIJING] China's securities regulator will probe Citic Securities Co for alleged rule violations in the latest move against the country's largest brokerage, where some top executives have already been placed under investigation.

The firm received a notice from the China Securities Regulatory Commission on Thursday saying it will be investigated because it allegedly violated regulations on the supervision and administration of securities firms, Citic said in a Shanghai stock exchange statement. The brokerage said it will fully cooperate with the probe and that all of its operations are normal.

President Cheng Boming is among seven Citic Securities executives named by Xinhua News Agency as being under investigation, part of a financial-industry crackdown as the government seeks to assign blame for the nation's summer stock-market rout. Chinese authorities have been discussing the need to punish Citic Securities for its role in the selloff, a person familiar with the matter said last week.

BLOOMBERG