Summary The benchmark Shanghai Composite Index dropped 37.98 points to 3,267.76.
SHANGHAI (AFP) - Chinese shares were down 1.15 percent in morning trade Thursday after state media said the market regulator would probe margin trading by brokerages, dealers said.
The benchmark Shanghai Composite Index dropped 37.98 points to 3,267.76.
The Shenzhen Composite Index, which tracks stocks on China s second exchange, eased 0.63 percent, or 9.72 points, to 1,529.14.
The China Securities Regulatory Commission will launch an "inspection" of 46 securities firms for margin trading, the official Xinhua news agency reported late Wednesday, a practice that allows investors to trade stocks using borrowed funds.
The regulator earlier this month punished 12 brokerages for violating rules governing the practice.
