Market manipulation cases surge 68 per cent in first half

CSRC to strengthen supervision of information disclosure during IPOs, restructurings

PUBLISHED : Friday, 01 July, 2016, 8:52pm
UPDATED : Friday, 01 July, 2016, 8:52pm

China’s top securities regulator investigated 52 cases of market manipulation in the first half of this year, a 68 per cent rise on the same period last year.

“Violations to rules and laws on the securities and futures markets rose sharply in the first half, and the CSRC will maintain high pressure to combat such misconduct to keep the capital markets stable and healthy,” said Zhang Xiaojun, spokesman for the China Securities Regulatory Commission on Friday.

Zhang said the regulator would continue strengthening its supervision of information disclosure during initial public offerings and restructurings by listed companies.

“Market manipulation cases have grown fast on the main board, and also emerged on the futures market, the bond market, the over-the-counter style NEEQ market, and on the Shanghai–Hong Kong Stock Connect scheme,” he added, noting people are using innovative methods, including program trading, to manipulate share prices.

He said the authority was also urging listed companies to improve their information disclosure regarding environment protection.

“CSRC will not accept their IPO applications from companies that have received administrative punishment or criminal penalties from environmental protection authorities in the past 36 months.”

The CSRC also announced the asset management company ZhongXin Fuying, and an individual investor named Wu Junle, had been fined more than one billion yuan for manipulating share prices of companies, including Shenzhen listed Shenzhen Tellus Holding Co Ltd.

Zhang added the regulator was closely monitoring developments in the ongoing tussle for control of property giant China Vanke, and called on each side to “have their eyes on the future”, while taking into account the interests of shareholders, and the long-term development of the company.