Shanghai - China’s stocks tumbled as some of the largest brokerages disclosed regulatory probes, the nation’s industrial profits fell and two companies flagged bond payment difficulties.
The Shanghai Composite Index sank 5.2% at 08:16, while the Hang Seng China Enterprises Index headed for its lowest close in almost two months.
Citic Securities and Guosen Securities plunged more than 9% in Shanghai after saying they were under investigation for alleged rule violations, while Reuters reported Haitong Securities is also being probed after the company suspended trading in its shares.
Industrial profits slid 4.6% last month, data showed on Friday, compared with a 0.1% drop in September.