China stock watchdog to investigate market manipulation

Securities commission says investigation will focus on such activities occurring simultaneously in multiple markets


Web Desk July 02, 2015
PHOTO: AFP

BEIJING: China's securities watchdog announced late on Thursday that it will investigate a suspected manipulation of the stock market on a day when the Shanghai index fell more than three per cent.

Zhang Xiaojun of the China Securities Regulatory Commission (CSRC) said the investigation will focus on such activities occurring simultaneously in multiple markets, adding that the CSRC has tracked irregularities between securities and futures trading.

In case it confirms wrongdoing, Xiaojun said that the CSRC will transfer criminal cases to the police for further action.

Read: China markets plunge again, Hong Kong up on Greece hopes

The announcement came as the losing streak in China's A-share market continued with wild speculation on the reasons behind the stampede, with some even pointing to conspiracy.

China Financial Futures Exchange on Wednesday had denied rumours that overseas investors were shorting A-shares via stock futures.

Shares continued their descent on Thursday with the benchmark Shanghai Composite Index falling 3.48 per cent to finish at 3,912.77 points.

The article originally appeared on Xinhua News

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