Stocks News
- Illegal share trading targeted
Date: 9-May-2007 Sources: (Shenzhen Daily)
SHANGHAI'S stock market will tighten oversight of its investors after new cases of illegal trading were discovered on the booming exchange, a China Daily report said yesterday.
The bourse will release new measures after two accounts at Wanlian Securities in Guangzhou were found last month to be bumping up stock prices by placing large buying orders and then canceling them, the report said.
Their suspension followed a trading halt order to an account at Shanghai's Orient Securities.
'Usually, they're suspended for two or three days at a time,'said Chen Ji, adding that longer suspensions would be implemented for repeat offenders.
Details about the new tougher measures to be introduced by the Shanghai exchange were not immediately available.
As Chinese share prices have rocketed to record heights, the China Securities Regulatory Commission has pledged to curb illegal trading and fraud.
China's Cabinet in February ordered a top-level task force be set up to fight stock market fraud and regulate the trading in the nation's volatile and poorly managed exchanges.
The new oversight body will seek to induce order in the market by preventing firms from misleading their clients and making them more aware of the dangers involved in investment.
The tougher regulatory approach follows on from an announcement in February that the government would also tighten rules against insider trading by executives of State-owned listed firms.
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