Chinese stock regulators levy $870M fine in scandal

In this July 9, 2015, photo, a woman walks out of the China Securities Regulatory Commission at the Financial Street in Beijing. Chinese securities regulators have imposed a record $870 million fine on a company that manipulated share prices in the latest scandal to roil the country's markets. Regulators said on Wednesday, March 14, 2018 the company in the southeastern city of Xiamen used 300 trading accounts to manipulate prices of shares in smaller banks and other companies. (AP Photo/Andy Wong)

BEIJING — China's securities regulator said Wednesday it fined a company a record 5.5 billion yuan ($870 million) for manipulating share prices in the latest scandal to roil the country's turbulent markets.

Xiamen Beibadao Group made a 945 million yuan ($150 million) profit by using 300 trading accounts to manipulate share prices of two banks and an aluminum maker, the China Securities Regulatory Commission said. It gave no details of possible criminal charges against employees. Phone calls to the CSRC weren't answered.

China's securities industry has been battered by scandals since a 2015 stock market crash that prompted a multibillion-dollar government intervention to prop up prices.

A prominent trader was sentenced last year to 5½ years in prison for share-price manipulation and the general manager of the country's biggest brokerage was arrested in 2016. Other brokerages disclosed they were under investigation.

Beibadao Group is China's largest privately owned operator of railway cargo cars, according to news reports.

Its traders took advantage of a reduction in the number of shares available for trading following the 2015 crash due to government-ordered buying by big investors, according to business news website Tencent Finance. It said that allowed Beibadao to boost prices while buying fewer shares.

The government announced plans Tuesday to combine China's banking and insurance regulators in an effort to improve supervision of those industries amid a campaign by the ruling Communist Party to control financial risks and surging debt levels. There was no mention of possible changes to the CSRC, the third financial regulator.

People also read these

Bolivian president, opposition spar over official's killing

Aug 26, 2016

President Evo Morales and his political opponents trade recriminations over the shocking beating death of a high-ranking government official by protesting miners who had blockaded a rural highway

Global stocks lower, except for Tokyo, on Yellen speech

Aug 29, 2016

Most global stocks slipped Monday on remarks from the U.S. Federal Reserve late last week that the case has strengthened for raising interest rates, but the Tokyo market was an exception and gained on prospects for a strong dollar

Asian stocks mixed ahead of US jobs data

Aug 31, 2016

Asian stocks are mixed Wednesday in listless trading ahead of jobs data later this week and continued anticipation of higher interest rates in the U.S. Japan's benchmark Nikkei 225 gained 0.8 percent to 16,857.07 in morning trading

Subscribe to our newsletter!

Your Name

Your Email Address