China toughens punishment for stock market irregularities

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China's securities regulator has toughened punishment on illegal market activities this year amid strengthened supervision, which handed out more fines in the first five months of 2017 than the whole year of 2016.

From January to May, fines totaling 6.14 billion yuan (about 901 million US dollars) were slapped on law violators in the securities sector, according to the China Securities Regulatory Commission (CSRC).

A total of 29 people were suspended from securities business in the five months, the regulator said.

CSRC has pledged more efforts to prevent risks, saying "no hidden risks will be neglected", amid the country's strengthening supervision in the financial sector. /VCG Photo

In 2016, the CSRC punished 183 illegal market activities and handed out fines of 4.28 billion yuan, up 288 percent from the 2015 level. Some 38 people were barred from the securities industry.

While affirming improved market supervision, CSRC vice chairman Jiang Yang warned that the economic uncertainties, as well as new technologies, products and trading mechanisms, are likely to trigger new risks and challenge regulation.

The CSRC has been toughening supervision and punishment of illegal market activities such as insider trading and stock manipulation after the market rout in 2015 shattered investor confidence.

In March, the CSRC slapped a 3.47 billion yuan fine on a company chairman for stock market manipulation, a record high.

(Source: Xinhua)

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