Top China brokerage reports two executives unreachable amid probe

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Two more executives at CITIC Securities, China’s largest stock brokerage, were unable to be located Monday, according to a company statement to the Hong Kong stock exchange.

A total of six of the broker’s top eight executives are now missing, the South China Morning Post said, amid reports that they have been detained or were helping police with a probe against the company.

The China Securities Regulatory Commission two weeks ago notified CITIC that it was to be investigated for allegedly violation of the rules on securities management, financial news agency Bloomberg reported, citing the company.

The two officers declared missing Monday were CITIC head of investment banking Chen Jun and the head of global investing Yan Jian Lin, the SCMP reported, citing the statement to the exchange.

Reports in the mainland press on Friday said the two have detained by authorities.

Authorities earlier announced procedures against CITIC chief Cheng Boming and six other of the company’s high-ranking executives, according to Xinhua. Some of those taken in for questioning have returned to work, Monday’s report said, citing the company.

Another brokerage Guosen Securities was also under investigation for similar charges.

Beijing says financial services corporations share responsibility for the stock market tumble that saw the Shanghai index lose around a third of its value over a matter of weeks this summer.

The growth prior to the crash was fuelled by private investors buying equity on credit. Critics say the government is looking for a scapegoat for the market’s correction.

The two companies saw their own share prices fall by the intraday maximum of 10 per cent on November 27, a day after the probes were announced, before trading was halted.

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