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Rumors That CITICS Loses CNY2.9Bln Faked up by Two Retail Investors, Investigation Shows

09-03 17:52 Caijing
Two retail investors who suffered heavy losses in the stock market have faked up the rumors, according to China's securities regulator.

Two retail investors who suffered heavy losses in the stock market have faked up rumors that China's leading brokerage CITIC Securities lost as much as 2.9 billion yuan from overseas investment, and that its chairman Wang Dongming was taken away for investigation, China Securities Regulatory Commission said today following an investigation.

One of the investors, surnamed Zhang, faked up the story that CITICS lost 2.9 billion on August 13 in a post published via a popular stock chartroom on eastmoney.com, the regulator source said.

The 29-year old investor did this out of resentment after his investment in stocks has witnessed years of losses since 2007. He picked up CITICS merely because it was one of China's famous brands.

The other suspect, surnamed Chen, 37, is an employee in an equity investment management firm. He made up that CITICS' chairman was taken away based on the rumor, also on the same, and the message was spreading quickly through China's most popular microblogging platform Weibo.

Shares of CITICS slumped by nearly the daily limit of 10 percent that day, leading to a cross-border decline in brokerage business in afternoon trading.

The company denied the rumors immediately that day, with company secretary Zheng Jing describing them as "unfounded".

 

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