Chinese shares sank more than 5 percent on Friday in their biggest drop since this summer’s rout after Reuters reported the stock regulator had widened its probe on brokerages to include the country’s fourth-biggest securities firm.
The sharp drop in afternoon trade highlights the volatility of China’s markets ahead of an expected decision by the International Monetary Fund (IMF) on Monday on whether to include the yuan currency in its global reserve basket.
China Haitong Securities is under investigation by the China Securities Regulatory Commission (CSRC), two people with direct knowledge of the matter told Reuters, following similar probes into two other domestic brokers.
