Securities regulator fines five China brokerages

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The China Securities Regulatory Commission on Friday announced punitive action against five brokerages, refusing to let up the regulatory crackdown even as the stock markets showed signs of stabilising.

A total of 240 million yuan will be fined and confiscated from Huatai Securities, Haitong Securities, GF Securities, Founder Securities and Zheshang Futures for their “insufficient inspection and understanding of clients’ identity”, the regulator said in an announcement.

The listed companies confirmed the fines and admitted failures in their procedures in statements filed on the Hong Kong and Shanghai stock exchanges late on Friday.

The CSRC has been cracking the whip on “errant” financial institutions it blames for the stock slump.