(ECNS) -- Several securities regulators, brokers, and a financial journalist were investigated Tuesday night by the China Securities Regulatory Commission (CSRC) for suspected illegal securities trading, according to Xinhua News Agency.
Eight individuals from Citic Securities, China's biggest securities dealer, are suspected of illegal securities trading.
A staff member from the China Securities Regulatory Commission surnamed Liu and a former staff member surnamed Ouyang are suspected of insider trading and forging official documents and seals, Xinhua said.
A journalist surnamed Wang with Caijing Magazine and several other people are suspected of fabricating and spreading fake securities and futures trading information.
Four securities firms -- Haitong Securities Co, GF Securities, Huatai Securities and Founder Securities said that they had received notices of investigations from the CSRC.
The companies allegedly violated the rules covering the assessment and identity verification of clients.
During the investigation, the companies are expected to cooperate with the CSRC in disclosing related information, according to Global Times.
The benchmark Shanghai Composite Index fell 7.63 percent to 2,964.97 points, following the 8.49-percent loss on Monday in its biggest daily slump since February 2007. The Shenzhen Component Index lost 7.04 percent to close at 10,197.94 points.
Xinhua and Global Times contribute to the report
