GF Securities's Shares Drop After CSRC Slaps Chinese Brokerage With OTC Trading Limits
Liao Shumin
/SOURCE : yicai
GF Securities's Shares Drop After CSRC Slaps Chinese Brokerage With OTC Trading Limits

(Yicai Global) Aug 6 -- The Hong Kong-listed stocks of GF Securities have fallen to the lowest since listing over four years ago after the Chinese brokerage was reprimanded by the nation's securities regulator due to insufficient control over its Hong Kong subsidiary.

GF Securities's [HKG: 1776] share price dropped 4.8 percent to HKD7.70 (USD1) before lunch today while the main benchmark Hang Seng Index declined 0.7 percent. In April 2015, the Guangzhou-based firm set its initial public offering price at HKD18.85. Its Shenzhen-listed stock price [SHE:000776] edged down 3.1 percent to CNY13.35 (USD1.90) by noon amid a 2.7 percent decrease in the Shenzhen Stock Exchange Composite Index. 

The China Securities Regulatory Commission will restrict the scale of GF Securities's over-the-counter derivatives as well as other new types of business for six months, the target firm said in a statement today. The reason is that the Securities and Futures Commission of Hong Kong found out that GF Securities has ineffective control over the financial affairs of its Hong Kong unit which has also submitted inaccurate data to the CSRC.

Editor: Emmi Laine 

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Keywords: GF Securities