Friday, 3 July 2015

China stocks tumble 6% as govt launches probe

Chinese shares tumbled more than 6% on Friday, after the country's securities market regulator said it had opened an investigation into suspected market manipulation as Beijing struggles to head off a full-blown crash that could damage an already slowing economy.

After a slump of more than 20 percent in Chinese stocks since mid-June, the China Securities Regulatory Commission (CSRC) has set up a team to look at "clues of illegal manipulation across markets".

The China Daily newspaper said on Friday that the CSRC was probing investors who used stock index futures to "short" the market, or bet on prices falling.

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