China probing brokers, 2 employees of securities regulator for possible stock market offenses

Chinese authorities are investigating four securities brokerages and one current and one former employee of its securities regulator for possible stock market offenses.

Three of the brokerages say they have been told they are being investigated for possibly failing to confirm the identities of clients. The official Xinhua News Agency said eight employees of a fourth brokerage were suspected of illegal securities trading. The agency said a staff member of the China Securities Regulatory Commission and a former staff member were suspected of insider trading.

Authorities announced in July they were investigating possible misconduct in China's securities market following the collapse of a stock price boom.

Brokerages have been accused of improperly allowing customers to trade without giving their real names and other violations.