China’s securities watchdog yesterday that it will crack down on illicit securities trading so that the market can recover steadily, according to a report from state-owned newswire Xinhua.
The China Securities Regulatory Commission (CSRC) alleges: “Some institutional or individual investors hold ‘virtual’ securities accounts or trade with borrowed accounts. As real-name registration is required by the law, this illicit conduct may damage other investors’ legitimate interests.”
According to the report, the CSRC have asked local authorities to verify the existence of stock trading accounts and tighten oversight of account activity.
The commission said it will clamp down on illegal activities in accordance with Chinese law and hand perpetrators over to the police.
The actions announced by the CSRC are the latest in a long line of measures announced in recent weeks, including the arrest of “malicious” short sellers, designed to support the nation’s stock market.
Having fallen in excess of 30% since mid-June, the benchmark Shanghai Composite index rallied more than 10% during Thursday and Friday last week, the largest two-day rally seen since September 22, 2008.
For Chinese regulators, having presided over a 140%+ rally in the nation’s stock market in the 12 months to June, it appears that a gain of such magnitude is only deemed to be “steady” based on this report.
Will there be more “steady” gains today? We’ll find at 11.30am (AEST).
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