Date
22 April 2018
China's securities regulator has announced its largest ever fine on a single firm for stock price manipulation. Photo: Bloomberg
China's securities regulator has announced its largest ever fine on a single firm for stock price manipulation. Photo: Bloomberg

CSRC slaps 5.5 bln yuan fine on firm for stock manipulation

China’s securities regulator has slapped a record 5.5 billion yuan (US$871 million) fine on a Xiamen-based firm for manipulating share prices of some Shenzhen-listed firms.

The China Securities Regulatory Commission (CSRC) is said to have levied the penalty on Bei Ba Dao Group, accusing it of reaping illegal gains worth 945 million yuan by manipulating shares of lJiangsu Zhangjiagang Rural Commercial Bank, Jiangsu Jiangyin Rural Commercial Bank Co and Guangdong Hoshion Aluminium Co.

The Wall Street Journal, citing a Shanghai Securities News report, said it marks a record penalty by the regulator against a single company.

The fine comes as the CSRC has been tightening its grip over the stock market since a crash in 2015 wiped out trillions of dollars, the Journal noted.

Liu Shiyu, the commission chairman, has vowed repeatedly to protect ordinary investors and once called on authorities to hunt down “capitalist crocodiles”.

According to Shanghai Securities News, Bei Da Dao manipulated share prices of some newly-listed companies.

Shares of Jiangsu Zhangjiagang Rural Commercial Bank, Jiangsu Jiangyin Rural Commercial Bank and Guangdong Hoshion Aluminium more than doubled in early 2017, reaching record highs before plunging around 70 percent, the Journal noted. 

The penalty imposed on Bei Da Bao was the largest in the history of administrative fines from the securities regulator.

Last year a Chinese hedge-fund manager was slapped with a 11 billion yuan fine, also for manipulating stocks, but that penalty came from a provincial court, the Journal noted.

Bei Da Bao Group is said to be engaged in freight and cargo services and property management.

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