Money Matters | Cops looking for stock crooks points to Xi taking control
For foreigners, Xinhua's headline of China police fighting stock trading crimes is ridiculous. To the locals, it is a relief.

For foreigners, Xinhua's headline of China police fighting stock trading crimes is ridiculous. To the locals, it is a relief.
It is not because the market meltdown was caused by malicious short selling, as the state media suggests. It is because it signifies President Xi Jinping has taken over the reins of crisis control from Premier Li Keqiang.
More importantly, it signifies the beginning of coordinated, and probably draconian, prop-up efforts the market has long been waiting for.
On the books, the Ministry of Public Security comes under the State Council. In reality, the Central Political and Legal Affairs Commission calls the shots. This body has been under the firm control of Xi ever since the removal of former security tsar Zhou Yongkang. Meaning, if the cops are in, so is Xi.
The ministry said it was planning a nationwide campaign to crack down on illegal operations in securities and futures to protect order in the capital markets and investors' interests.
Whether the police will find any malicious short seller is beside the point, its involvement is sufficient warning to people to desist from trying anything not in line with the efforts to support the market.