China's anti-graft body investigates Changjiang Securities chairman

[SHANGHAI] Chinese brokerage Changjiang Securities Co Ltd said on Wednesday its chairman Yang Zezhu was being investigated by the Communist Party's anti-corruption agency for possible discipline violations.

The move comes as authorities work to restore confidence in the stock market after a fumbled intervention and suspicion of irregular trading following market turmoil which began in June.

Since then, authorities have swept up market participants, journalists, fund managers and social media commentators in a crackdown on alleged market manipulation.

In an exchange filing, the brokerage said it received the investigation notice on Tuesday from the Communist Party's Commission for Discipline Inspection in Hubei province.

The brokerage did not say why Yang was being investigated, saying only that it was for "personal reasons", and that the company's operations were normal.

Chinese officials usually use the term "discipline violations" as a euphemism for corruption.

Changjiang shares fell around 2 per cent in early trading on Wednesday.

Changjiang is the latest Chinese brokerage to be targeted by the anti-graft watchdog.

Several senior executives at rival CITIC Securities Co Ltd have been investigated for possible breaches of the law.

Since assuming office three years ago, Chinese President Xi Jinping has waged a war against deep-seated corruption that has brought down numerous senior officials.

REUTERS