China crackdown on security industry intensifies

Hong Kong

CHINA's biggest clampdown on malpractices in its securities industry kicked into higher gear this week with news that three of the nation's largest brokerages are being investigated for alleged rule violations.

Citic Securities Co and Guosen Securities Co late on Thursday announced probes by the securities regulator, triggering a slump in Chinese brokerage shares on Friday. Haitong Securities Co, which halted its shares from trading pending an announcement, is also under investigation, people with knowledge of the matter said.