China?will focus on cases of stock price manipulations via
disclosure of false information and insider trading in cracking
down on illegal activities in the securities market, said sources
with the China Securities Regulatory Commission (CSRC).
The commission said that company violators in the past had
tended to exaggerate profits, but a new trend saw companies trying
to manipulate their stock price by disclosing false information,
and insider trading.
The recent case of Hangxiao Steel -- which saw its share price
soar after claims of a huge overseas contract -- was cited.
The commission was looking into detection mechanisms to be
operated in cooperation with local bureaus and stock exchanges,
said an unnamed CSRC official.
The commission pledged to closely monitor the share price
fluctuations of listed companies, and said it would investigate
suspicious variations.
Stocks of companies that fluctuate suspiciously may be suspended
until proper information is disclosed, said the official.
The commission issued a separate notice instructing listed
companies to verify their information disclosure system so as to
ensure the truth, accuracy, completeness, timeliness and fairness
of disclosed information.
CSRC said in a Friday announcement that Hangxiao Steel had
violated the country's information disclosure rules with its
overseas contract claim.
(Xinhua News Agency April 30, 2007)