CSRC investigates stock price fixing

The China Securities Regulatory Commission (CSRC) is investigating institutions and individuals involved in the manipulation of 18 stocks, Zhang Xiaojun, a spokesman for the commission said on December 19.

Stock manipulation is usually more common when securities markets rally. In many cases, rule-breakers disturb market order by using illegal means to lure small investors into buying overpriced securities. As one of the major factors that may lead to systemic market risks, stock manipulation severely damages the principles of fairness and openness, thus hurting the interests of investors. While manipulation has always been a focus of the market rectification work done by the CSRC, results to date have been far from satisfactory.

In this sense, new methods are required to combat market manipulation.

For instance, regulators could use big data to conduct comprehensive regulatory supervision of all market trading. As capital passes through a third-party depository system on the way to the secondary market, regulators have access to a trove of useful data which can help them track settlements and transfers, allowing for effective and timely detection of potential market manipulation.