China’s stock market regulator, the China Securities Regulatory Commission (CSRC), has released six cases of information fabrication and vowed to work with the police to crack down on market rumors.
According to state-run newswire Xinhua, on June 5 the CSRC began investigating 16 cases where investors, both individuals and institutions, had either fabricated or spread “market misinformation”.
In six of the cases the commission found “major evidence” of market manipulation, adding “some had made profits from the rumours, which caused chaos for the shares of some listed companies”.
The commission stated that the rumormongers allegedly violated the law and had transferred the cases to the police.
So what exactly were the rumours that led to some investors making money from spreading market misinformation?
Conveniently, and unsurprisingly, that specific information wasn’t disclosed within the report.
In light of this lack of transparency, perhaps the meaning behind the announcement is a case of prevention rather than cure.
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