Regulator announces price manipulation probe
China’s securities regulator is to hold an inquiry into alleged stock manipulation of some listed firms in response to media reports.
The China Securities Regulatory Commission posted a statement on Sunday saying it will investigate several firms, including Jiangsu Lettall Electronic Co and ZOY Home Furnishing Co.
It said it is determined to adopt a "zero tolerance" approach to all kinds of major illegal activity, including malicious market manipulation and insider trading.
Since last year, the CSRC has investigated 65 cases of alleged market manipulation.
Ye Fei, a former private equity fund manager, alleged on May 9 on his Weibo account that Shanghai-listed ZOY Home Furnishing Co had been conducting stock price manipulation masqueraded as "market value management.”
Among another eight listed firms alleged to be involved in share price manipulation were Eastern Pioneer Driving School Co, Huayu Mining, Visionox Technology and Guangzhou Haozhi Industrial Co.
Ye said he planned to give the names of more companies he alleges had manipulated prices.