Firms punished for illegal trading

Four securities firms and a futures brokerage have been fined a combined 178.5 million yuan ($28 million) for carrying out what China's securities watchdog called illegal trading activities which contributed to the recent stock market volatility.

The China Securities Regulatory Commission also confiscated 62.4 million yuan in illegal earnings of the five companies, which included Haitong Securities Co Ltd, Huatai Securities Co Ltd, Founder Securities Co Ltd, GF Securities Co Ltd and Zheshang Futures Co Ltd.

The action follows a crackdown by the authorities on illegal stock financing and trading after dramatic falls in the country's stock exchanges since mid-June.