CSRC said to probe Haitong Securities

The China Securities Regulatory Commission is investigating China Haitong Securities, the country’s fourth-largest brokerage by market capitalization, Reuters reported, citing unnamed sources. Little has emerged as to the specific reasons for the recent wave of probes but analyst Gu Yongtao at Cinda Securities, said the regulator could be trying to get a better grip on leveraged trading after the stock market rout in the summer. “We think the purpose of the probes is to bring all businesses related to stock financing to the table so that regulators can have a clear picture of the leverage situation,” he said.