Shares in CITIC Securities, China's biggest brokerage, fell on Wednesday after the company said some senior managers are under police investigation as part of a probe by Beijing into possible market manipulation linked to the slump in its stock markets.
Reuters reports that authorities are looking at whether market malpractices contributed to the plunge in Chinese equities, which have fallen around 40% since mid-June.
CITIC said late on Tuesday that three company officials, including its general manager, Cheng Boming, are being investigated for alleged insider trading and leaking information.
Cheng is one of the most senior financial executives known to have been embroiled in Beijing's market manipulation probes so far.
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Shares in CITIC Securities fall as police probe insider trading
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