rthk.hk - Instant NewsToday, 10:22 PM
The China Securities Regulatory Commission says it is to inspect two more companies for signs of unofficial margin financing.
Following a probe into Hangzhou-based financial software company Hundsun Technologies, the CSRC has now sent investigators to Shanghai MecrtSoft Tech and Hithink RoyalFlush Information Network.
The regulator did not give any more details.
Hundsun's HOMS service, which is a kind of trading platform for small asset managers, has allegedly been used for margin financing outside the approved channels.
Hundsun says the platform is just a technical tool for private funds, and that the suggestion it triggered chaos in China's stock market over the past weeks was biased and unprofessional.
Before the market took a downturn on June 12, the Shanghai composite had risen by 152 percent since July 2014 and nearly 60 percent since the beginning of the year, galloping far ahead of economic fundamentals during the period.
On Monday, shares on the mainland suffered their biggest one-day fall in more than eight years, amid renewed fears about China's economic outlook.
The Shanghai Composite Index sank 8.5 percent to close at 3,725.
http://rthk.hk/rthk/news/englishnews/20150727/news_20150727_56_1119383.htm
