CSRC Vows to Crack Down on Malicious Short Selling to Stabilize Stock Market

Those who dare to flout the law will ‘lose their shirts and rot in jail’, warns regulator in moves to curb market manipulation

China Securities Regulatory Commission

China’s securities regulator issued a series of statements Monday on improving the quality of listed companies and cracking down on illegal short selling, to maintain market confidence amid the stock market slump.

Recently, as the stock market continued to fluctuate, the China Securities Regulatory Commission (CSRC) has found multiple malicious short-selling cases, in which violators were suspected of manipulating the market and damaging the legitimate interests of investors, the regulator said.

A group controlling more than 100 security trading accounts profited illegally to the tune of 130 million yuan ($18.1 million) by manipulating stock prices, resulting in the stock falling by the daily limit numerous times, the CSRC said.