China toughens punishment for stock market irregularities

BEIJING — China's securities regulator has toughened punishment on illegal market activities this year amid strengthened supervision, which handed out more fines in the first five months than the whole year of 2016.

From January to May, fines totalling 6.14 billion yuan (about $901 million) were slapped on law violators in the securities sector, according to the China Securities Regulatory Commission (CSRC).

A total of 29 people were suspended from securities business in the five months, the regulator said.

In 2016, the CSRC punished 183 illegal market activities and handed out fines of 4.28 billion yuan, up 288 percent from the 2015 level. Some 38 people were barred from the securities industry.

While affirming improved market supervision, CSRC Vice Chairman Jiang Yang warned that the economic uncertainties, as well as new technologies,products and trading mechanisms, are likely to trigger new risks and challenge regulation.

The CSRC has been toughening supervision and punishment of illegal market activities such as insider trading and stock manipulation after the market rout in 2015 shattered investor confidence.

In March, the CSRC slapped a 3.47 billion yuan fine on a company chairman for stock market manipulation, a record high.