Three senior managers at Citic Securities, China’s biggest brokerage, are being investigated by the authorities for insider trading, the company announced in a statement on Sept. 15.
The suspects are Citic’s president Chen Boming, head of operations Yu Xinli, and Wang Jinling of the firm’s IT department. They aren’t the first. In August, eight other executives, including chief executive officer Xu Gang, had also been detained on suspicion of insider trading.
Anti-corruption investigations into illicit financial activity have stepped up since the Shanghai stock exchange dipped 25 percent in August.
Analysts say that Citic Securities, a state-run company established in the early days of China’s economic reform period in the 1970s, was tasked by with reviving the stock market but undermined the effort when staff allegedly took advantage of inside information to make illicit profits