Brokerages probed as Beijing ups the ante

China investigates country’s largest securities houses and detains high-ranking official at Citic Securities after market rout.

China is investigating some of the country’s leading securities houses and has detained a senior executive at Citic Securities, providing further evidence that some state officials are increasingly leaning on their authoritarian instincts to help end the A-share mayhem.

Four of China’s largest brokerages Haitong Securities, GF Securities, Huatai Securities, and Founder Securities  said in separate filings late Tuesday that they were being investigated by the China Securities Regulatory Commission for their suspected failure to “review and verify clients’ identities.”

The moves would “awe the delinquents” and “purify” the capital markets, the official Xinhua News Agency said in a commentary...

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