China is battling against market manipulators

THE Chinese stockmarket is not for the faint of heart. Over the past decade punters have endured two big bubbles and two big crashes—the latest in 2015. But those still smarting from their losses can at least be thankful that they did not suffer a worse fate: making too much money. Last week the government declared that it would be remorseless in going after investors who manipulate the market for profit. We will catch these “giant crocodiles”, said Liu Shiyu, the chief securities regulator. They will not be allowed to “flay the skin and suck the blood” of retail investors, he added, belying his earlier reputation as a mild-mannered bureaucrat.

Normally it would be prudent to take such statements with a pinch of salt. China has often vowed to tackle insider trading, to little effect. But the tough talk about discipline this time seems to have more political weight. Looking at Xi Jinping’s first five years as president, the stockmarket crash in the summer of 2015 ranks as one of the biggest blots on his record. It was a transparent display of shoddy governance. Investors who got burned still nurse grievances against regulators. So Mr Xi,...Continue reading

Source: China http://ift.tt/2llSSR8

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