Top financial regulators in China committed to tighter controls following the recent collapse of a commodity-linked product issued by Bank of China caused over $1 billion in losses.
A meeting chaired by vice premier Liu He focused on commitment to crack down on financial fraud, insider trader and market manipulation. «Zero tolerance» will be applied and violators will face harsh punishments.
According to a «Caixin» report citing an unnamed source, international commodity market risks were amongst the topics discussed in light of the recent collapse of a product issued by Bank of China which hit 60,000 retail investors.
Luckin Scandal
Recently, China was also spotlighted in the recent Luckin scandal that erased $5 billion in shareholder value after the coffee seller fraudulently inflated its sales figures. Mainland regulators said in late April that they would cooperate with American regulators to supervise and crack down on cross-border malpractices involving foreign-listed Chinese firms.
The meeting held involves a top level of committee, the Financial Stability and Development Committee (FSDC), which includes state heavyweights in China’s financial sector. In addition to Liu – the top economic advisor to Xi Jinping – the FSDC also includes central bank governor Yi Gang; state council deputy secretary-general Ding Xuedong; banking and insurance regulator Guo Shuqing; securities regulator Yi Huiman; and foreign exchange chief Pan Gongsheng.
