SHANGHAI (Reuters) - China’s securities regulator aims to crack down resolutely on illegal margin financing activities and maintain order in capital markets following media reports that a margin lender in the southern province of Hainan had run away with investors’ money.
The China Securities Regulatory Commission urged investors to stay away from gray-market margin lenders, which are not licensed to conduct securities businesses and are sometimes involved in illegal activities, it said in a statement.
The regulator issued the statement in response to media reports that Hainan Beigefu Technology Co, a margin lender, had taken off with investors’ funds.
The regulator said it was closely monitoring the case and would cooperate with the police in their investigations.
Reporting by Samuel Shen in Shanghai and Lee Chyen Yee in Singapore, editing by Ed Osmond