China stockmarket: Journalists, traders, officials rounded up in wake of 'panic and disorder'
China stockmarket: Journalists, traders, officials
rounded up in wake of 'panic and disorder'
August 31, 2015
Chinese state media has announced a slew of confessions
following investigations into recent stock market gyrations
One of those confessions came from a detained reporter
who admitted to spreading false information that caused "panic and
disorder".
An official from China's securities regulator had
confessed to insider trading while four senior executives from China's largest
brokerage, CITIC Securities, had also confessed to insider dealing, the
official Xinhua news agency reported.
China is trying to boost its stock markets, which have
plunged 40 per cent since mid-June on concerns over the country's slowing
economy and an unexpected devaluation of the yuan currency in mid-August.
Among a number of measures, authorities have cracked down
on the fabrication of trading information, alleged malicious short selling and
other strategies seen as hampering a recovery.
'Subjective guesses'
Xinhua said Wang Xiaolu, a reporter at the respected
Caijing business magazine, had confessed to writing about the Chinese stock
market "based on hearsay and his own subjective guesses" that
"inflicted huge losses on the country and investors".
Xinhua did not say if Wang wrote more than one story or
detail what he reported.
Caijing could not be reached for comment. In a statement
last Wednesday, a day after Xinhua said Wang was being held, Caijing said it
had not been given a reason for his detention, adding it would support his
actions within the normal course of reporting. It was unclear if Wang had a
lawyer.
Chinese state media often publish confessions of those
detained in high-profile cases before they are tried in court, a practice that
rule of law advocates say violates the rights of the accused to due process.
Insider trading allegation
Xinhua also said Liu Shufan, an official with the China
Securities Regulatory Commission (CSRC), had confessed to insider trading,
forging official seals and using his position to boost a listed company's share
price in return for several million yuan worth of bribes. It was unclear if Liu
had been detained or had a lawyer.
The CSRC could not be reached for comment.
Xinhua added that Xu Gang, Liu Wei, Fang Qingli and Chen
Rongjie, whom it described as senior executives at CITIC Securities, had
confessed to insider trading, although it gave few details.
A CITIC Securities spokesman declined to comment. On
Sunday, the brokerage said several senior managers had been asked to assist
with a public security investigation and that the company was actively
cooperating with the request.
It was unclear if the four were being detained or had
legal representation.
Eight CITIC employees were being investigated for suspected
illegal securities trading, Xinhua has previously said.
It has not said if that investigation is linked to the
one involving the CSRC official.
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