Industrials

CSRC Weekly: Crackdown on Market Manipulators Increasing Leverage

5.00
1 votes$1.43

Harold Hsu

Published at 2018-08-10 10:35

Summary

CSRC revealed that it will further crackdown on market manipulation behaviors that increase leverage to prevent further aggravated market risks. The spokesperson of the CSRC, Gao Li, stressed that some market participants have gained greater capital advantages and implemented manipulation via private financing channels. These include asset management plans, private equity funds and more, which cause false market signals and can seriously mislead investors.

Analysis

Gao also stated that private financing channels of the market manipulator often have a structured design and a forced liquidation mechanism. When there is a large-scale decline in the market or an individual stock, it may trigger a negative chain

Harold Hsu
Analyst