CSRC downgrades 58 of 95 brokerages for flouting many rules

As many as 58 of China's 95 brokerages have been downgraded by the China Securities Regulatory Commission in its annual classification.

The main reasons for the downgrades are brokerages' non-compliance with regulations, flouting of rules and below-par risk management capacity, according to Dong Dengxin, a researcher at the Wuhan University of Science and Technology and a financial analyst.

Researchers said the downgrades will help make the market more transparent and cleaner.