Homs closes to new business amid crackdown

Hundsun Technologies will not be opening new accounts on its popular Homs trading platform amid a regulatory crackdown on grey market margin finance.

Hundsun Technologies, the Chinese financial-services software provider controlled by Alibaba founder Jack Ma, is scaling back its popular Homs trading platform amid a crackdown on the previously unregulated grey market for margin finance.

Hundsun said early Thursday that it will stop the opening of new accounts, ban capital increases on existing accounts, and close accounts with zero balances, prompting its shares to sink by the daily maximum of 10%.

In a Shanghai stock exchange filing the company said the moves were in response to the China Securities Regulatory Commission’s clampdown on illicit margin trading.

“We’ve paid high attention to the CSRC’s directive...

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