South China Morning Post: China’s regulator fines brokers for illegally providing margin financing services

China’s regulator has penalised three of the country’s largest brokers, blaming them for their role in the 2015 stock market crash, in the first official account of a rout that wiped out US$5 trillion of market value in a few weeks since mid June that year.

Leading mainland brokerages Citic Securities and Haitong Securities, together with smaller player Guosen Securities, were fined by the China Securities Regulatory Commission (CSRC) for breaking margin financing and securities lending rules in a case involving Citadel Securities, filings of the three companies said on Wednesday night.

Analysts have taken the penalty a final conclusion to a two-year investigation led by the CSRC, regarding the involvement of brokerage companies during the sharp stock market slump.

The full article is available here.

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