Brokerage probe sparks sell-off in China’s stocks

Crackdown on brokerages: A file picture shows a man riding a bicycle past a Citic Securities branch in Shanghai. It has received a notice from the China Securities Regulatory Commission on Thursday saying it would be investigated because it allegedly violated regulations on the supervision and administration of securities firms. – Bloomberg

SHANGHAI: China’s stocks tumbled the most since the depths of this year’s rout as some of the largest brokerages disclosed regulatory probes, the nation’s industrial profits fell and companies struggled to repay bonds.

The Shanghai Composite Index sank as much as 6.1% before closing 5.5% lower, as 23 stocks fell for each one that rose.