China’s securities regulator says it will get tough on stock market violations, as 26 cases were investigated in the first six months--up significantly from a year ago.
Jiang Yang, Vice Chairman of the regulatory commission, says the authority will enhance pre-emptive oversight and streamline administration. The comments come after investigations into Everbright Securities’ trading errors, which caused a dramatic 5-percent spike in the Shanghai Composite on August 16. Experts say the incident reflects flaws in risk management at China’s financial institutions. The commission says in addition to tougher punishment for violations, it will also enhance crackdown on false information disclosure, listing fraud and illegal activities by brokerages.