SHANGHAI, March 13 China's securities regulator
has fined a group of stock traders more than $173 million for
market manipulation, including via the Shanghai-Hong Kong Stock
Connect in the first cross-border case of its kind involving the
Tang Hanbo and another person, Wang Tao, made 41.9 million
yuan ($6 million) in illicit profits by manipulating shares of
Zhejiang China Commodities City Group Co Ltd through
trading accounts in Hong Kong and Shanghai, the China Securities
Regulatory Commission said in a statement published on Friday.
Tang and others also made 250 million yuan manipulating
other stocks in mainland China, it said.
The combined penalties amounted to 1.2 billion yuan ($173.76
million), it said.
Tang and Wang could not be reached for a comment.
The Shanghai-Hong Kong Stock Connect scheme, launched in
late 2014, allows foreigners to access China's mainland "A"
shares through the Hong Kong exchange (HKEx), and mainlanders to
access Hong Kong shares through the Shanghai exchange, subject
to daily quotas.
Late last year, mainland and Hong Kong authorities launched
an extension of the connect scheme that links the bourse in the
southern Chinese city of Shenzhen with the Hong Kong stock
The CSRC has pledged to strengthen cooperation with Hong
Kong's securities regulator to prevent and crack down on
manipulation, and promote the healthy operation of investment
links between the two markets.
($1 = 6.9059 Chinese yuan renminbi)
(Reporting by John Ruwitch; Editing by Simon Cameron-Moore)