Chinese police summon 11 over illegal stock market activities
Chinese police have summoned 11 people, including a financial journalist, who are under investigations for illegal stock market activities, the state media reported, as the government targets volatility on the exchanges.business Updated: Aug 26, 2015 21:13 IST
Chinese police have summoned 11 people, including a financial journalist, who are under investigations for illegal stock market activities, the state media reported, as the government targets volatility on the exchanges.
The Chinese government launched an unprecedented rescue package as the stock market plummeted 30% from mid-June, which included a crackdown on short-selling and funding a state company to buy shares on its behalf.
Authorities accused a Caijing magazine journalist of colluding with others to manufacture and spread false information on securities and futures trading, the official Xinhua news agency reported late on Tuesday.
The magazine confirmed journalist Wang Xiaolu was subpoenaed by police but defended his actions.
Wang wrote a story in July saying the securities regulator was studying plans for government funds to exit the market.
The China Securities Regulatory Commission (CSRC) quickly denied the Caijing story and labelled it "irresponsible".
But Caijing said it "defended journalists' rights to do their duty under the law", according to a statement posted on its website on Wednesday.
The CSRC said earlier this month that the China Securities Finance Corporation -- a state-backed company tasked with buying shares -- would continue to have a role for a "number of years", but would only enter the market during times of volatility.
The CSRC comments were widely seen by investors as a signal of less governmental intervention in the stock market.
Separately, eight people from Citic Securities, the country's top brokerage by assets, are also suspected of illegal trading, including managing director Xu Gang, media reports said. No specific details were given.
A current CSRC employee who worked on public offerings and one former employee involved with market regulation are suspected of insider trading and forging official documents, the reports said.