Posted on 11/27/2015 7:16:45 AM PST by TigerLikesRooster
Chinese shares plunge 5.5% as authorities probe brokers over violations
By Chao Deng
Published: Nov 27, 2015 3:25 a.m. ET
Chinese authorities’ investigations into two major Chinese brokerages over suspected violations drove shares in Shanghai sharply lower Friday.
The Shanghai Composite Index SHCOMP, -5.48% fell 5.5% to 3,436.30, the largest daily percentage loss since Aug. 18.
The losses wiped out most of Shanghai’s gains this month and the index remains down 38% from a June peak.
The benchmark is still up 1.6% month-to-date, and up 14% from its August low.
Hong Kong’s Hang Seng HSI, -1.87% shed 1.6%, putting it down 2.8% for the week-to-date.
On Thursday, China’s largest stock broker, Citic Securities Co. 600030, -10.01% said it would cooperate with the country’s stock regulator in an investigation of the firm for suspected violation of securities rules. Guosen Securities 002736, -9.99% , China’s third-largest broker by assets, said it is under investigation for suspected violations, too, according to a company filing.
(Excerpt) Read more at marketwatch.com ...
P!
At least they investigate their banks.
Looks like the kids who make the I-phones are going have to go down to half a cup of rice a day now.
:-)
I think BBC had a story last week about a Chinese bank having $100 Billion plus error
zowie. rarely do good things happen after stock market crashes.
I bet most of the selling was from people at the brokerages trying to turn assets into cash so they could get the money and themselves out of the country. I can’t see how this probe makes a difference to ordinary investors. Our brokerages are probed all the time and it doesn’t hurt equities.
Maybe you haven’t been reading the news since 08 but there have been enormous fines on most of our big banks. I won’t take contention if you say they deserved them, they surely did, but ‘fines’ have become a source of revenue for our government. Agencies are practically funding themselves on fines.
Mr. Madoff chuckles.
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