SHANGHAI: Chinese shares closed down more than five per cent Friday, after inquiries were announced into several major brokerage firms.

The benchmark Shanghai Composite Index tumbled 5.48pc, or 199.25 points, to 3,436.30. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, slumped 6.09pc, or 141.58 points, to 2,184.11. The plunges came after one of the country’s biggest brokerages, Guosen Securities, said it was being investigated by market regulators for suspected “rule violations”, weeks after its president hanged himself.

That came after the number one stockbroker, Citic Securities, said overnight that it was being probed, following inquiries into several of its executives for insider trading.

Second-ranked Haitong Securities also halted trading of its shares in Shanghai and Hong Kong, “pending the release of an announcement which may constitute inside information”.

Published in Dawn, November 28th, 2015