China market plunges
Chinese shares plunged 6.3 per cent after the country's securities regulator imposed margin-trading curbs on several major brokerages, a sign that authorities are trying to rein in the market's big gains.
The China Securities Regulatory Commission imposed the curbs on margin financing, or borrowing to purchase stocks, late Friday following an investigation of the industry.
The three affected brokerages, Citic Securities Company, Haitong Securities Company and Guotai Junan, were forbidden to lend money and shares to new customers for three months after they were allegedly caught extending margin-trading contracts in violation of the rules.
The Shanghai Composite has soared almost 60 per cent in the past year. Investors fear regulators believe prices have risen too much recently and might impose more curbs.