Chinese authorities are once again seeking scapegoats to blame for the rout in the nation’s stock market.
Reuters reports China’s stock market regulator, the CSRC, along with police, are looking at suspected violations of stock dealing rules and the fabrication of trading information.
Police are investigating eight employees of the country’s largest brokerage, CITIC Securities, for suspected illegal securities trading, said Reuters, citing a report from state-run news agency Xinhua.
Four other Chinese brokerages, other than CITIC, were also under investigation by the CSRC for failing to properly identify clients.
Alongside targeting brokerages, Xinhua also noted an employee and a former employee of the CSRC were under investigation for insider trading and forging official documents and seals.
If that wasn’t enough, Wang Xiaolu, a reporter at business magazine Caijing is suspected, along with others, of fabricating and spreading false securities and futures trading information, said the agency.
The investigation into alleged market manipulation – on the surface – appears to be yet another desperate from the government to blame others for the decline in the nation’s stock market.
The trouble here is that the government itself is the culprit.
The truth is that this is simply the popping of one-almighty state-sponsored bubble: one the government orchestrated in the face of deteriorating fundamentals.
If the government is looking for scapegoats to blame for the market rout, the first place they should be looking is in the mirror in front of them.
You can read more from Reuters here.