China securities regulator to check brokers' financing needs after Huatai share plan

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China securities regulator to check brokers' financing needs after Huatai share plan
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China's securities regulator said it would fully check securities firms' financing needs after Huatai Securities Co Ltd , proposed a share placement plan that would be one of the biggest in China's brokerage industry.

A Chinese national flag flutters outside the China Securities Regulatory Commission building on the Financial Street in Beijing, China July 9, 2021. REUTERS/Tingshu Wang

The comments come as Huatai Securities, one of China's biggest brokerages, said on Friday it plans to raise 28 billion yuan in A-share and H-share placements. Listed brokers should reasonably determine the financing plan and method, and safeguard the legitimate rights and interests of all types of investors, especially small and mid-sized investors, the regulator said.Shares of Huatai Securities slumped roughly 7% in Shanghai and about 2% in Hong Kong as markets reopened after New Year holidays.

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