China brokerages ordered to review trades after stock rout

July 13, 2015 09:09
Chinese authorities have taken a series of measures to arrest a steep slide in equity prices over the past month. Photo: Reuters

The China Securities Regulatory Commission has ordered brokerages to review trades and enforce rules that require the use of real names and national identification numbers, Reuters reported.

The announcement Sunday marked the latest effort by authorities to stabilize stock prices following a devastating market rout in the past month, it noted.

The securities regulator is trying to clamp down on a trick whereby a single investor controls multiple accounts -- often registered under other people's identification numbers -- to bid the price of a stock up or down.

An investigation led by China's vice minister of public security is said to have revealed that some brokerages may have been used in manipulating futures prices and in other "malicious" trading.

Regulators have recently unfurled a series of measures, such as banning listed companies' big shareholders from selling shares or limiting shorting activities in stocks and futures, while vowing to crack down on illegal trading activity.

The moves came after the A-share markets lost about 30 percent of their value in the past month.

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