Chinese police have been investigating Citic Securities. According to a report from Stock Times CN on August 28, 2015, it was Citic’s illegal securities trading and its “malicious short-selling” that caused China’s stock market slump. Citic Securities is China’s largest investment bank and was also China’s “national stock market rescue team.” Ironically, the so called “national team” that was supposed to be the main force to rescue China’s stock market from its slump turned out to be a real troublemaker.
Eight people from Citic Securities have been investigated for possible involvement in illegal securities trades. A staff member surnamed Wang from Caijing magazine is also being probed for spreading false information on securities and transactions. Among the eight investigated officials, three of them are members of the Executive Committee of Citic Securities. Xu Gang, the former chairman of brokerage development and head of the research department at Citic Securities, is among the detainees.
Source: Stock Times CN, 证券时报网, August 28, 2015