The futures units of two Chinese brokerages are under investigation in the latest in a series of securities-industry probes to accompany speculative frenzies in the nation’s markets, reports Bloomberg. Guotai Junan Securities Co., China’s third-largest brokerage by market value, said the China Securities Regulatory Commission suspects a “failure to effectively perform its duty as an asset manager,” in an exchange filing on Thursday. Orient Securities Co. issued a similar statement Friday. China’s commodity-futures trading exploded this year in a speculative frenzy as investors swarmed in after last year’s stock market bust. Trading curbs prompted speculators who had piled into steel, iron ore and coal to retreat as quickly as they had poured in.
You must log in to post a comment.