China’s securities regulator on Wednesday slapped a record 5.5 billion yuan ($870.87 million) fine on a Chinese company for share price manipulation, the official Shanghai Securities News reported.
The penalty on Bei Ba Dao Group, announced by the China Securities Regulatory Commission (CSRC) at a press briefing in Beijing, underscores Beijing’s determination to root out misbehaviour in the country’s stock market.
Bei Ba Dao, based in China’s southern city of Xiamen, pocketed illegal profit worth 945 million yuan, by manipulating shares in newly-listed companies such as Jiangsu Zhangjiagang Rural Commercial Bank Co, Jiangsu Jiangyin Rural Commercial Bank Co and Huasi Holding Co, the newspaper said, citing CSRC.
CSRC Chairman Liu Shiyu has stepped up supervision of the stock market – once likened by some to a casino, to protect the interest of retail investors, and attract foreign investors.
Starting June, China-listed “A-shares” will be included in MSCI’s emerging market index, projecting the market into global limelight.