Chinese stock regulators levy $870M fine in scandal

In this July 9, 2015, photo, a woman walks out of the China Securities Regulatory Commission at the Financial Street in Beijing. Chinese securities regulators have imposed a record $870 million fine on a company that manipulated share prices in the latest scandal to roil the country's markets. Regulators said on Wednesday, March 14, 2018 the company in the southeastern city of Xiamen used 300 trading accounts to manipulate prices of shares in smaller banks and other companies. (AP Photo/Andy Wong)

Chinese regulators have fined a company a record $870 million for manipulating stock prices in the latest scandal to roil the country's financial markets

BEIJING — China's securities regulator said Wednesday it fined a company a record 5.5 billion yuan ($870 million) for manipulating share prices in the latest scandal to roil the country's turbulent markets.

Xiamen Beibadao Group made a 945 million yuan ($150 million) profit by using 300 trading accounts to manipulate share prices of two banks and an aluminum maker, the China Securities Regulatory Commission said. It gave no details of possible criminal charges against employees. Phone calls to the CSRC weren't answered.

China's securities industry has been battered by scandals since a 2015 stock market crash that prompted a multibillion-dollar government intervention to prop up prices.

A prominent trader was sentenced last year to 5½ years in prison for share-price manipulation and the general manager of the country's biggest brokerage was arrested in 2016. Other brokerages disclosed they were under investigation.

Beibadao Group is China's largest privately owned operator of railway cargo cars, according to news reports.

Its traders took advantage of a reduction in the number of shares available for trading following the 2015 crash due to government-ordered buying by big investors, according to business news website Tencent Finance. It said that allowed Beibadao to boost prices while buying fewer shares.

The government announced plans Tuesday to combine China's banking and insurance regulators in an effort to improve supervision of those industries amid a campaign by the ruling Communist Party to control financial risks and surging debt levels. There was no mention of possible changes to the CSRC, the third financial regulator.

Related News

Taliban suicide attacks, shootout kill 16 in...

Mar 2, 2017

Twin Taliban suicide bombings and a shootout with Afghan security forces that followed one of the...

At least one dead, 35 wounded in Kabul...

Mar 1, 2017

US-AFGHANISTAN-BLAST-CASUALTIES:At least one dead, 35 wounded in Kabul attacks-Afghan official

Taliban claim attacks in Afghan capital, at least...

Mar 1, 2017

US-AFGHANISTAN-BLAST:Taliban claim attacks in Afghan capital, at least 15 dead

Taliban claim attacks in Afghan capital, at least...

Mar 1, 2017

US-AFGHANISTAN-BLAST:Taliban claim attacks in Afghan capital, at least 15 dead

Death toll from Afghanistan attacks climbs to 22

Mar 2, 2017

The Afghan Health Ministry says the death toll from simultaneous suicide bombings in the capital...

Afghan women fencers aim to parry prejudice

Mar 8, 2017

US-WOMENS-DAY-AFGHANISTAN-FENCING:Afghan women fencers aim to parry prejudice

About Us

Get yourself immersed in engaging topics right here. Daily World Feed is a multi-platform media, providing you latest breaking news straight from the industry.

Contact us: sales[at]dailyworldfeed.com

Subscribe Now!