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PR Newswire
17-09-2015, 01:36 PM
Alamak even Mata being hit for not doing the job to expectations?
Chinese stock regulator in anti-corruption probe
[b]China has put a top securities regulator who played a high-profile role in Beijing’s stockmarket rescue effort under investigation, in the latest in a spate of probes that have hit officials and brokerages alike.[/b]
The Communist Party’s Central Commission for Discipline Inspection said in a brief statement that Zhang Yujun, assistant chairman of China Securities Regulatory Commission, was being investigated for alleged serious violations of discipline. Mr Zhang couldn’t be reached for comment, and it wasn’t clear whether he was represented by a lawyer.
The party antigraft watchdog didn’t provide further details. In China, accusations of violations of discipline typically amount to shorthand for corruption.
The probe into Mr Zhang’s activities is the latest in a broad sweep undertaken by Chinese officials as they look for ways to stem stockmarket losses.
China’s main stock index is now down nearly 40 per cent from its June peak and down 2.6 per cent since the beginning of the year, though it is still 35 per cent higher than a year ago. The drop has added to worldwide worries about Beijing’s ability to tame volatile markets, a perception also driven by a surprise currency devaluation last month that sent global markets tumbling.
Mr Zhang played a prominent role in efforts to rescue the stock market by a group of regulators and state-run companies called the National Team by official media. Among other efforts, the group bought stocks as they fell and financed a state margin lender that allowed investors to borrow to buy more shares. The group’s efforts haven’t stopped the market’s plunge, though yesterday the Shanghai Composite Index ended up 4.9 per cent.
In an early August meeting with brokerage and fund managers, Mr Zhang called for stepped-up supervision over margin lending and asked them to step up efforts to stabilise the stock market, according to a statement from the regulator. He also urged brokers to strengthen supervision over program trading and to prohibit any “malicious short selling” through the use of program trading, according to the statement.
Chinese authorities said on Tuesday that Cheng Boming, president of major brokerage Citic Securities, and other senior operational officials were under investigation for potentially leaking and trading on unspecified inside information. Citic Securities has said it is cooperating with authorities.
In late August, Chinese official media said Liu Shufan, a top CSRC official, was also a suspect in an alleged insider-trading probe. Mr Liu said on government-run China Central Television at that time that he earned several million yuan by helping win approval for a company’s private placement and then participating in the transaction through proxies. “As a civil servant, I deliberately broke the law and disregarded the laws and rules,” he said.
Authorities also accused a financial reporter in late August of wrongdoing for reporting on China’s efforts to bolster the market. The reporter for Caijing, Wang Xiaolu, was shown on CCTV saying he wrote an article in July that had a “great negative impact on the market.” The article said authorities might scale back official share-buying that was then propping up the stock market. Mr Wang said his report included information from “an abnormal channel” as well as his own “subjective judgment.” It isn’t clear whether the probes are related.
Wall Street Journal
Chinese stock regulator in anti-corruption probe
- GRACE ZHU
- THE WALL STREET JOURNAL
- SEPTEMBER 17, 2015 2:48PM
[b]China has put a top securities regulator who played a high-profile role in Beijing’s stockmarket rescue effort under investigation, in the latest in a spate of probes that have hit officials and brokerages alike.[/b]
The Communist Party’s Central Commission for Discipline Inspection said in a brief statement that Zhang Yujun, assistant chairman of China Securities Regulatory Commission, was being investigated for alleged serious violations of discipline. Mr Zhang couldn’t be reached for comment, and it wasn’t clear whether he was represented by a lawyer.
The party antigraft watchdog didn’t provide further details. In China, accusations of violations of discipline typically amount to shorthand for corruption.
The probe into Mr Zhang’s activities is the latest in a broad sweep undertaken by Chinese officials as they look for ways to stem stockmarket losses.
China’s main stock index is now down nearly 40 per cent from its June peak and down 2.6 per cent since the beginning of the year, though it is still 35 per cent higher than a year ago. The drop has added to worldwide worries about Beijing’s ability to tame volatile markets, a perception also driven by a surprise currency devaluation last month that sent global markets tumbling.
Mr Zhang played a prominent role in efforts to rescue the stock market by a group of regulators and state-run companies called the National Team by official media. Among other efforts, the group bought stocks as they fell and financed a state margin lender that allowed investors to borrow to buy more shares. The group’s efforts haven’t stopped the market’s plunge, though yesterday the Shanghai Composite Index ended up 4.9 per cent.
In an early August meeting with brokerage and fund managers, Mr Zhang called for stepped-up supervision over margin lending and asked them to step up efforts to stabilise the stock market, according to a statement from the regulator. He also urged brokers to strengthen supervision over program trading and to prohibit any “malicious short selling” through the use of program trading, according to the statement.
Chinese authorities said on Tuesday that Cheng Boming, president of major brokerage Citic Securities, and other senior operational officials were under investigation for potentially leaking and trading on unspecified inside information. Citic Securities has said it is cooperating with authorities.
In late August, Chinese official media said Liu Shufan, a top CSRC official, was also a suspect in an alleged insider-trading probe. Mr Liu said on government-run China Central Television at that time that he earned several million yuan by helping win approval for a company’s private placement and then participating in the transaction through proxies. “As a civil servant, I deliberately broke the law and disregarded the laws and rules,” he said.
Authorities also accused a financial reporter in late August of wrongdoing for reporting on China’s efforts to bolster the market. The reporter for Caijing, Wang Xiaolu, was shown on CCTV saying he wrote an article in July that had a “great negative impact on the market.” The article said authorities might scale back official share-buying that was then propping up the stock market. Mr Wang said his report included information from “an abnormal channel” as well as his own “subjective judgment.” It isn’t clear whether the probes are related.
Wall Street Journal