The China Securities Regulatory Commission (CSRC) is investigating Hundsun Technologies over concerns that its trading systems may have helped fuel the recent rout in China’s stock markets.
On Monday, the regulator sent an enforcement team to the company to check that it is following the market rules, a CSRC spokesman said, without providing further details.
HOMS has been widely used by "gray lenders" – it allows them to borrow up to 10 times more money than the initial capital. Then, the money could be used for market speculations.
The company has rejected the allegations calling them "unprofessional and unjustified". According to Hundsun’s specialists, HOMS is nothing more than a technical instrument and can provoke a tumble in stock markets.
