111. CIAO: China — Market Manipulation
- Author:
- Caspar Fithin
- Publication Date:
- 11-2000
- Content Type:
- Policy Brief
- Institution:
- Oxford Analytica
- Abstract:
- A leaked Shanghai Stock Exchange report has detailed the extent of trading irregularities within China's domestic equity markets. In the primary market, a series of companies have falsified records on profits, assets and even entire businesses in order to publicly issue and list shares. In the secondary markets, insider trading, the spreading of false information, coordinated stock purchases, price ramping and sales of stocks by large institutional investors are common practice. The extent of trading irregularities reflects the government's preference for market growth over regulatory standardisation. This approach is undermining the CSRC's credibility. Unless regulatory practices are tightened, institutional investors will not have the maturing effect on markets and stabilising impact on prices the government seeks.
- Topic:
- Economics, Government, and Markets
- Political Geography:
- China