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Investment Law & Regulation Markets Politics & Society

Regulators ratchet up scrutiny of investors after tumultuous trading week

The China Securities Regulatory Commission on Sunday ordered local brokerages to review trades and enforce rules that prohibit a single trader from controlling multiple accounts under other peoples’ names to bid stock prices up or down, Reuters reported. State news agency Xinhua also announced Sunday that an investigation by Vice Minister of Public Security Meng Qingfeng suspected certain brokerages of manipulating futures prices and other so-called “malicious” trading. The moves follow others rolled out during a week of sudden, major losses for China’s stock market, including banning major shareholders from selling listed firms’ stock and limiting of shorting activities in stocks and futures.

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