The Supreme People’s Procuratorate said on Wednesday that it will thoroughly investigate and deal with “financial crocodiles” who have caused a stir on the market.
Not shy of using evocative turns of phrases, the state agency added that it aims to do the same with the “moles” who engage in insider trading and money-for-power deals, according to a summary of the notice released by the Procuratorate.
In particular, prosecutors are being asked to step up their investigations into allegations of fraud in securities and futures trading and issuance, and clamp down on irregular information disclosures, misinformation and insider leaks.
In China, the term “financial crocodiles” has come to identify both Chinese tycoons who are allegedly unfairly profiteering from the stock market and large conglomerates known for their aggressive dealmaking.
Crackdown on Ponzi schemes
The aim of the directive is to curtail the “spread of corruption” in China’s financial industry, it said, adding that it will also “strike hard” against Ponzi schemes that threaten economic growth and social stability.
According to some observers, a great deal still remains to be done in this regard. Last month, the deputy dean of the finance school at the Renmin University of China in Beijing said that the country remains a hotbed for Ponzi schemes despite crackdowns.
