China regulator orders brokerages to halt OTC swap lending: sources

[SHANGHAI] The China Securities Regulatory Commission (CSRC) has issued window guidance to domestic brokerages requiring them to cease financing clients' stocks purchases using swaps and other over-the-counter derivatives, two sources with direct knowledge told Reuters.

The CSRC did not respond to calls requesting comment.

The move comes after CITIC Securities was discovered to have inflated its swap trading by US$166 billion, which it blamed on an IT upgrade.

REUTERS