The head of China's biggest brokerage is now being investigated

The chief of China's largest brokerage firm is now being probed by authorities in the country, according to Kyoungwha Kim and Alfred Liu at Bloomberg.

Cheng Boming, the president of Citic Securities Co., is the latest executive at the firm to be probed by the government.

According to state-run Xinhua News Agency, managing directors Xu Gang and Liu Wei have already admitted to illegal trading and the spreading of false information.

Citic Securities is part of Citic Group, a state-owned investment corporation.

The Chinese government has been searching for the "source" of market panic - targeting "malicious" short sellers.

Shares of Citic Securites have fallen more than 60% since April, Bloomberg reported.

Read the full Bloomberg article here.