China’s stock market falls 5%
Published: November 29, 2015 6:06 pm
29 November 2015, Nirapad News: China’s main share index closed down by more than 5% after several major brokerage firms announced they were under investigation.
The Shanghai Composite index ended the day 5.5% lower at 3,436.3 points – marking its biggest drop since August.
Late on Thursday, it was announced that China’s securities regulator was investigating the country’s largest brokerage, Citic Securities.
The firm is being probed over the possible breaking of market rules.
Rival brokerage Guosen Securities is also being investigated, and shares in both Citic and Guosen fell by 10%, the maximum allowed in one day.
In addition, trading in China Haitong Securities shares was halted and later in the day the firm also confirmed it was under investigation.
Chen Xingyu, an analyst at Phillip Securities, told the media, ‘The biggest reason for such a sudden drop today is because of regulator’s investigation of the top brokers. It has triggered a broader sell-off’, reports the BBC.
Analysts said there was little information on the specific reasons for the probes other than violations of securities regulations.