China Securities Regulatory Commission (CSRC) stated in the evening on the 5th that amid recent stock market volatility, there were ‘unlawful elements’ engaged in ‘illegal profiteering.’ Multiple cases of ‘market manipulation and malicious shorting’ were identified, with one criminal group illegally profiting around CNY 130 million. CSRC vows ‘zero tolerance’ and a ‘high-pressure stance’ against such actions, aiming to severely punish wrongdoers to ‘their bankruptcy and long jail sentences.’
The following day (6th), Hang Seng Index surged +4.04%, the largest in 6.5 months. Shanghai Composite rose +3.23%, the highest in two years. Shenzhen Composite soared +6.22%, the biggest in 8.5 years. All indices outperformed the rumored CNY 2 trillion Beijing’s market bailout on January 23.
