Securities regulator cracks down on rumors

Commission investigated 10 illegal activities this week

The securities regulator announced on Friday that it would seriously punish rumormongers to build confidence in the A-share market.

"The China Securities Regulatory Commission is cooperating with public security departments to crack down on activities of fabricating and spreading market rumors," said Zhang Xiaojun, a spokesman for the commission.

"The Chinese stock market has been volatile in recent weeks, and some criminals took advantage of the opportunity to make and spread market rumors, which conveyed a sense of panic in the market and even helped short sellers to manipulate the market," said Zhang.

Before this week, the commission had investigated 16 illegal activities, and it released details of six cases on Friday.

Among the cases, an investor surnamed Liu in Hubei province is suspected of purchasing 400 shares of Shenzhen-listed Beijing Baofeng Technology Co Ltd with trading value of 108,000 yuan ($17,600) on May 19, and then releasing information on a website that day saying that Baofeng was planning to acquire Xunlei Networking Technology Co Ltd. Baofeng’s share price rose for two days, and Liu sold the shares to earn 8,400 yuan.

Additionally, the commission investigated 10 illegal activities this week related to listed companies’ financial statements, mergers and acquisitions, and information disclosure.