China’s Stance against Financial Markets Continues to Grow

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The Bund in China with Chinese Flag
The Bund in Shanghai

China’s president Xi Jinping met with financial regulators to discuss measures that would protect investors in the country’s stock market. The goal of the talks was to show that the country is working to limit market manipulation and increase transparency among major corporations.

Top-level support has been given for the president’s campaign.

Xu Xiang, owner of an investment firm in the country and billionaire, was detained on November 1 on suspicion that he conducted insider trading, which caused investors to lose out on their investment. Since being detained, no one has heard from the investment firm owner. Officials are attempting to add new regulatory measures as the Chinese economy slowed down in recent months.

According to several Chinese publications, security agencies have already started to take action against Xu and have frozen his accounts. In total, the frozen accounts are worth $675 million, and supposedly belong to Xu’s mother.

Several raids were conducted on mutual fund companies on Monday, with authorities seen taking laptops and other paperwork out of the offices of these firms.

The president has discussed the issue with state news media, and has called for better regulations of the stock market and the assurance that investors will be treated fairly. Chronic insider trading has been an issue in the country, and regulations are an attempt to ease financial risks.

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