China stock market manipulation cases surge 25pc, CSRC says
Market regulator should do more to help rebuild international confidence in the mainland stock markets, one analysts says
China’s top securities regulator said market manipulation cases have been on a “sharp rise” since last year, and pledged to do more to improve the supervising structure.
The Chinese Securities Regulatory Commission (CSRC) said the number of probed cases of market wrong doing increased at an annual growth rate of 25 per cent from 2012 to 2015.
Meanwhile, market manipulation cases surged by 473 per cent in 2015 on year, straining the resources of regulatory agencies charged with overseeing the markets, according to a report by the Legal Daily on Monday.
The CSRC has stepped up its monitoring activity against “market manipulation”. As part of that push the regulator has assisted the Ministry of Public Security in investigating more than 10 individuals and institutions for “malicious short selling” during the July market selloff. It’s not clear whether these investigations have concluded.
To solve improve the governing of the markets, the CSRC has urged the Shanghai and Shenzhen stock exchanges to set up independent law enforcement departments. The initiative will bolster enforcement personnel, adding about 80 officials to help oversee each market, the Legal Daily reported.
However, analysts said it was more urgent for the Chinese authorities to work to re-establish the credibility of the A-share market following the summer rout that erased billions of yuan in market value.