Chinese Company Hundsun Under Probe Over Stock Market Tumble

© AP Photo / Mark SchiefelbeinA Chinese investor
A Chinese investor - Sputnik International
Subscribe
Hundsun Technologies runs a financial investment platform known as HOMS. It allows lenders to borrow up to 10 times more money than the initial capital. Then, the money could be used for market speculations.

The China Securities Regulatory Commission (CSRC) is investigating Hundsun Technologies over concerns that its trading systems may have helped fuel the recent rout in China’s stock markets.

On Monday, the regulator sent an enforcement team to the company to check that it is following the market rules, a CSRC spokesman said, without providing further details.

An investor takes notes as he watches a board showing stock prices at a brokerage office in Beijing, China, in this July 6, 2015 file photo - Sputnik International
Asia
China Investigates 'Malicious Short-Selling' in Stock Market Plunge
Hundsun runs a cloud-based financial investment platform known as HOMS, which allows trust firms and online lenders to provide trading faculties to their clients. It was launched in May 2012 and was originally designed for small and mid-sized asset management firms.

HOMS has been widely used by "gray lenders" – it allows them to borrow up to 10 times more money than the initial capital. Then, the money could be used for market speculations.

The company has rejected the allegations calling them "unprofessional and unjustified". According to Hundsun’s specialists, HOMS is nothing more than a technical instrument and can provoke a tumble in stock markets.

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала