US Edition 
Chinese stocks plunge as regulators widen probe into market
Stocks plunge by as much as 6pc as markets hit by regulatory probe and fresh fears over stability of the financial sector
China's stock market plunged on Friday after two top brokerage firms said they were being investigated by regulators over securities violations.
The Shanghai Composite Index closed down 5.48pc at 3,436.30, after falling by more than 6pc in early trading. This was the biggest drop since the end of August, when fears over the health of the world's second largest economy triggered a wave of panic across global stock markets.
Citic Securities and Guosen Securities plunged by the daily limit of 10pc in Shanghai after admitting they were under investigation for alleged "rule violations".
Haitong Securities was reportedly also being probed as the shares were suspended on Friday.
The probes by China's Securities Regulatory Commission (CSRC) form part of a widening anti-corruption campaign as the country investigates this year's stock-market rout.
The disclosures dragged down other stock markets in Asia. The Hang Seng index in Hong Kong closed down 1.9pc, at 22,068.32, while the Nikkei 225 index in Japan edged down 0.3pc.
Britain's benchmark index also edged down, falling by as much as 0.8pc in early trading before paring back some of the losses by late afternoon. Miners were the hardest hit.
However, other European stock markets were flat after better-than-expected regional confidence data offset investor concerns about global growth prospects.
Earlier this week, Citic Securities, China's largest broker, said it was being investigated over violations, following inquiries into several of its executives for insider trading. Another, Guotai Junan, announced on Monday that it had lost contact with its chairman.
Stocks have also come under pressure from concerns about many companies' ability to repay their debts.
Several Chinese corporates have defaulted on yuan-denominated bonds this year, while state-owned steel trader Sinosteel postponed a bond payment for a second time last week.
Experts have called time on China's three-decade growth miracle, as the economy makes the delicate transition towards domestic consumption from investment-led growth. Official figures show growth fell to a six-year low of 6.9pc in the third quarter.