CSRC launches probe of Citic Securities for suspected violations

Citic Securities has disclosed that the China Securities Regulatory Commission has notified it of a probe for suspected violations of securities rules, The Wall Street Journal reported, citing a statement to the Shanghai Stock Exchange. Recent months following the summer’s stock market rout had previously seen Beijing limit its investigations to employees of the country’s third-largest brokerage by assets, including senior executives. “The scope and depth of official crackdown on financial irregularities since the stock-market plunge in June has surpassed expectations,” said Hao Hong, managing director at Bank of Communications. “The probe into China’s leading broker serves as a clear warning to market participants.”