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Screenshot of a breaking news alert e-mail from Q2 2017
China Securities Regulatory Commission (CSRC) on Friday argued against a media report alleging it has drafted a blacklist of 30 to 40 companies targeted for delisting.
CSRC spokesman Deng Ge sought to refute the allegations. According to Xinhua, he stated:
“The report is seriously inconsistent with the facts. Stock exchanges are the ones responsible for delisting companies, and all procedures should conform to the law.”
Deng added the CSRC will maintain its tough stance on market irregularities, such as illicit financing in stock trading.
The stock regulator has been quite strict regarding illegal leveraged trading since the market turmoil in the summer of last year, as this activity was considered the main cause for the unstable market and the following crash.
To prevent the steep fluctuations in the stock market, China introduced a circuit breaker mechanism early this year, but suspended it about a week after launch, as it “it failed to achieve the anticipated effects”. Liu Shiyu, Chairman of the CSRC, said earlier this month that China will not relaunch the circuit breaker mechanism in its stock market in the next several years.