China cracks down on fraud and tries to clean up image with Luckin probe
Evelyn Cheng, 25 February 2021
In a period fraught with tensions with the U.S., China is trying to show it’s being serious about tackling fraud. Nasdaq-listed Luckin Coffee said Monday it was cooperating with regulators, following reports of government investigation into the company over recently disclosed financial fraud.
The rare crackdown comes after an update to China’s securities law took effect in March. A new clause said the Chinese government will take legal action against overseas securities issuance and trading activity that hurts domestic investors. Continue reading “Article: China cracks down on fraud and tries to clean up image with Luckin probe”
China moves to limit short selling as virus looms over market reopening
Zhang Yan, Ryan Woo, 02 February 2020
China has taken steps to limit short-selling activities as the country’s financial markets prepare to reopen on Monday amid an outbreak of a new coronavirus, three sources with direct knowledge of the matter told Reuters.
The sources said China Securities Regulatory Commission (CSRC) had issued a verbal directive to brokerages including Citic Securities Co. and China International Capital Corp. to bar their clients from selling borrowed stocks on Feb. 3. It was not clear if the suspension — which was first reported on Sunday by Chinese media outlet 21st Century Business Herald — would be extended beyond Monday, one of the sources said. Continue reading “Article: China moves to limit short selling as virus looms over market reopening”