China Stocks Erase Weekly Gain on Citic Probe, Industrial Profit

Chinese stocks fell for a second day, erasing this week’s gain for the benchmark index, after the government said it will probe the nation’s biggest brokerage and data showed slumping profits for industrial companies.

The Shanghai Composite Index dropped 0.5 percent to 3,617.11 at 9:35 a.m., led by financial and material companies. Citic Securities Co., the largest brokerage, and Guosen Securities Co. plunged more than 4 percent after the securities regulator said it will probe them for alleged rule violations. Industrial profits dropped 4.6 percent last month, compared with a 0.1 percent drop in September.

Source: Bloomberg