Hundsun halts new account openings after probe

Hundsun Technologies Inc, the financial software company backed by e-commerce giant Alibaba Group Holding Ltd, has halted the services of its controversial HOMS trading system after the market regulator intensified efforts to crack down on illegal stock financing and trading.

The announcement came after the China Securities Regulatory Commission investigated the company on Monday over concerns that its trading platform may have been involved in illegal market practices that triggered the heavy correction of the A-share market.

The company said in a statement that it has shut down the account opening function of its HOMS system. In addition, all accounts with zero balance will be closed and clients will be banned from adding new funds to the existing accounts.