(Adds detail on changes to capital requirements for futures
SHANGHAI, April 22 China's securities regulator
has fined a former Shenzhen bourse official 251 million yuan
($36.5 million) for making illegal trades to profit from company
IPOs, underscoring Beijing's drive to root out bad behaviour in
its equities markets.
The China Securities and Regulatory Commission (CSRC) said
on its official microblog late on Friday it had fined Feng
Xiaoshu, formerly a member of the Shenzhen exchange's listing
approvals committee, and confiscated 248 million yuan he made
through the trades.
Feng had used relatives' accounts to buy shares in companies
ahead of initial public offerings, which he would then sell
after the price had shot up following the listing, it said,
adding Feng would be barred from the market for life.
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.
Last week the head of China's securities regulator said
stock exchange overseers must "brandish the sword" and combat
any activities that disturb market order.
China's crackdown on illegal market activities has
intensified since a mid-2015 stock market crash that wiped out
almost $3 trillion of share value.
The CSRC also said in a separate statement it would increase
the minimum net capital requirement for futures companies to 30
million yuan from Oct. 1, to reduce risks in the market. Xinhua
reported the current level was 15 million yuan.
($1 = 6.8845 Chinese yuan)
(Reporting by Adam Jourdan; Editing by Jacqueline Wong)