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Chinese police find signs of futures manipulation, Xinhua says

HONG KONG — Chinese police have found signs that some firms had manipulated the trading of stock-market futures, Xinhua reported, without saying where it got the information.

An investor looks at an electronic board showing stock information at a brokerage house in Shanghai, China, July 10, 2015. Photo Reuters

An investor looks at an electronic board showing stock information at a brokerage house in Shanghai, China, July 10, 2015. Photo Reuters

HONG KONG — Chinese police have found signs that some firms had manipulated the trading of stock-market futures, Xinhua reported, without saying where it got the information.

A team of investigators led by Vice Minister of Public Security Meng Qingfeng is continuing probes after arriving in Shanghai on Friday (July 10), the official news agency reported, without providing further details.

The Ministry of Public Security is helping the China Securities Regulatory Commission investigate evidence of “malicious” short selling of stocks and indexes as the government works to stem a stock plunge that erased almost US$4 trillion (S$5.4 trillion) in market value.

The move comes after the securities regulator pledged to “strictly” punish market manipulation and China’s state-run media blamed short selling, rumour-mongering and foreign meddling for fueling the stock slide.

Among other measures to prop up the market, the government has halted initial public offerings and banned major shareholders, corporate executives and directors from selling stakes in listed companies for six months. As of Friday, about 1,365 companies had suspended trading, locking up about US$2.4 trillion worth of stock. BLOOMBERG

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