BEIJING, April 15 The head of China's securities
regulator said on Saturday that stock exchange overseers must
"brandish the sword" and combat any activities that disturb
Liu Shiyu, chairman of the China Securities Regulatory
Commission (CSRC), said in a speech to members of the Shenzhen
stock exchange that markets must play a central role in bringing
market forces to support national strategy, enterprise reform
and technological innovation.
"(We) must further liberate thinking and have the courage to
brandish the sword, and defend legal oversight authority ... to
resolutely combat behaviour that disturbs market order and in no
way be lenient," Liu said.
"Stock exchanges are duty bound to safeguard market order.
Stock exchange members also have responsibility to safeguard
market stability," Liu said in the speech that was posted to the
Chinese regulators have turned their sights on controlling
risks in financial markets as speculative activity and leverage
in the economy rise, with the securities regulator vowing to
clear out "abnormal phenomena" from capital markets.
China's crackdown on illegal market activities has
intensified since the mid-2015 stock market crash that wiped out
almost $3 trillion of share value.
The regulator has said that China will focus on stable
development of its capital markets this year, but will press
ahead to further open its markets to foreign companies.
(Reporting by Michael Martina; Editing by Stephen Coates)