Shanghai exchange to discipline 4 brokerages for 'disruptive' trading

The Shanghai Stock Exchange vowed Monday to discipline four brokerages whose irregular activities triggered a high-profile market slump in the final minutes of trading on Dec 20.

Through its micro-blogging service, the SSE said it will take "self-discipline regulatory measures" - the lightest of equity market punishments in China - against four brokerages identified as UBS Securities, Guotai Junan Securities, China International Capital Corp and Orient Securities.

At the end of trading on Friday, Dec 20, banking shares that included those of Bank of Communications Co Ltd and China Construction Bank Corp plummeted, while six other stocks fell below the trading limit of 10 percent.