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BUSINESS A25
Saturday 28 November 2015
3 Chinese brokerages say they are under investigation
JOE McDONALD ing probed by regulators. government employees Party to deflect blame for nounced Citic executives
AP Business Writer A third brokerage, Haitong and a reporter for a busi- the 30 percent fall by the including its general man-
BEIJING (AP) — Three of Securities Ltd., issued a ness magazine following Shanghai index after state ager, Cheng Boming, were
China’s biggest securities similar announcement af- the collapse in prices that media encouraged the suspected of insider trad-
firms are under investiga- ter trading in its shares was began in early June. The public to buy stocks. Citic is ing and leaking sensitive
tion in a fresh aftershock suspended Friday morning. announcements that bro- China’s biggest brokerage information. The previous
from this summer’s market None gave details. kerages themselves were and part of Citic Group, month, the official Xinhua
plunge. The Shanghai Composite under investigation rep- the Cabinet’s main hold- News Agency said eight
Shares in Citic Securities Index closed down 5.5 per- resented a further wid- ing company. Guosen Citic employees and one
Ltd. and Guosen Securi- cent. ening of the probes. The and Haitong are among current and one former
ties Ltd. fell Friday by the Authorities have detained investigations were seen the country’s 10 biggest employee of the market
10 percent daily limit after securities executives, an by many as an attempt securities firms. In Septem- regulator were suspected
both said they were be- investment fund manager, by the ruling Communist ber, the police ministry an- of illegal stock trading.q
Japan plans extra budget, handouts, to pump up recovery
E. KURTENBACH ship. Shoppers take a look at oranges on sale at a shop at a shopping street of Ginza area in Tokyo.
AP Business Writer Suga said the measures Japan’s jobless rate fell to a 20-year low in October, but consumer spending and incomes
TOKYO (AP) — Prime Minis- are part of broader plan also edged lower as the tight labor market failed to spur significant increases in wages. The
ter Shinzo Abe has ordered announced by Abe to in- government reported Friday, Nov. 27, 2015 that unemployment in the world’s No. 3 economy
Cabinet ministers to pre- crease Japan’s gross do- dipped to 3.1 percent in October, compared with a rate of 3.4 percent in September.
pare an extra spending mestic product to 600 tril-
package, including cash lion yen ($4.9 trillion) by (AP Photo/Eugene Hoshiko)
handouts for the poor- 2020.
est pensioners, seeking to The extra spending aimed “Abenomics” approach, So far, short-handed em- the economy takes a turn
breathe fresh life into Ja- at farmers and seniors, bas- which has relied heavily ployers have resorted to for the worse. Household
pan’s stalling recovery. tions of support for Abe’s on pumping cash into the use of overtime and hiring spending fell 2.4 percent
The amount of the supple- Liberal Democratic Party, economy, hinges on get- more temporary workers, in October from the year
mentary budget has not also will likely find favor ting consumers and com- seeking to avoid increases before, and average in-
been decided, the chief among voters ahead of an panies to spend more and in base wages that would comes fell 0.9 percent, Fri-
government spokesman, election next summer thus boost demand. be difficult to reverse if day’s data showed.q
Yoshihide Suga, said Friday Japan slipped into a mild
after the Cabinet met. recession in the spring. Al-
Local media said the though the jobless rate
package will likely exceed fell to a 20-year low of 3.1
3 trillion yen ($24.5 billion) percent in October, ac-
and will be prepared in De- cording to data released
cember, for approval early Friday, consumer spending
in the new year. and incomes also edged
It will likely include one- down as the tight labor
time subsidies of 30,000 yen market failed to spur signifi-
($245) for cash-strapped cant increases in wages.
pensioners. Suga said it Abe has proposed a raft
also will include provisions of policies meant to help
to help farmers improve workers cope with child
their competitiveness as and elder care, part of
the Japan opens its mar- a “mobilization to ensure
kets further as part of a Pa- active participation of all
cific Rim trade agreement, members of society.”
the Trans-Pacific Partner- Ultimately, the fate of his
Swiss court convicts ex-HSBC employee for leaking data
JAMEY KEATEN Falciani, seen by some as and breach of bank se- He was ordered to serve cy.
Associated Press a crucial whistleblower, crecy while working at a five years in prison, mi- “There’s no surprise,”
GENEVA (AP) — A Swiss had refused to travel from Swiss HSBC subsidiary be- nus 170 days that he had with the verdict, he said.
court has convicted in ab- his native France to ap- tween 2006 and 2008. served in pre-extradition “Some people don’t ne-
sentia a former employee pear before the Swiss Fed- The court in the southern detention in Spain. gotiate on the issue of ter-
with international bank eral Tribunal in Bellinzona Swiss town of Bellinzona Falciani, reached by Sky- rorism. I don’t negotiate
HSBC for economic espio- in proceedings that be- threw out all the charges pe, said he had “no re- with financial opacity.”
nage and sentenced him gan in October. France except for one alleging a action” and said he had HSBC, which argued that
to five years in prison. does not extradite its own “serious” violation of eco- little consideration for the he had illegally down-
Herve Falciani, 43, was citizens and Falciani ap- nomic intelligence, for trial in Switzerland. He had loaded details from clients
on trial for leaking bank pears unlikely to serve the having made public infor- previously insisted that he and accounts, welcomed
data that led to a world- sentence. mation about private and didn’t believe he would the decision against Fal-
wide wave of tax evasion He was charged with ille- public foreign entities in receive a fair trial in Swit- ciani, who worked as an
probes against prominent gally obtaining data, eco- Lebanon, France, Germa- zerland. He also reaffirmed information technology
clients with accounts in nomic espionage, breach ny, and Britain, according his commitment to rooting specialist at HSBC Private
Switzerland. of business confidentiality to court documents. out illegal banking secre- Bank (Suisse) SA.q
