An investor in Citic Securities, China’s largest securities company, has asked regulators for evidence to support claims of insider trading against its parent, Citic Ltd, which unloaded shares in the brokerage days before a regulatory crackdown sent its stock plunging.
China’s main stock index suffered its biggest one-day fall in six years on Monday after the securities regulator banned Citic Securities and its two main rivals from opening new margin trading accounts for three months. Banks and brokerages were the hardest hit.
Citic Group, Citic Ltd’s unlisted parent, is one of a handful of national champions directly owned by China’s cabinet.