China's securities regulator said on Friday that 12 brokerage firms had been found to have violated rules in their margin trading businesses during a two-week inspection.

The China Securities Regulatory Commission suspended CITIC Securities, Haitong Securities and Guotai Junan Securities from opening new margin trading accounts for clients for three months as they failed to correct their practice of rolling over margin trading contracts.

China Merchants Securities and GF Securities were ordered to correct and cease margin trading for ineligible clients, and seven others, including Essence Securities, were given warnings for similar violations.

The announcement followed spot checks on 45 brokerage firms.

Despite such violations, the commission concluded that risks in the margin trading business were "relatively under control". It pledged to strengthen regulation and continue to continue with checks across the sector.

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