The crisis in China's brokerage industry could be worse than thought with Xinhua Far East China Ratings concluding that 50 "relatively healthy" brokers, accounting for half the industry, incurred a total loss last year of US$568m, the Financial Times reported. Xinhua said that while the brokerages are not in as bad shape as China's banks, their situation could worsen, causing more instability in the capital markets and undermining the government's efforts to reform the banks.
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