How to Deepen Supervision of Market Manipulation? He Qiang: Suggests Mobilizing the Strength of Vast Numbers of Small and Medium Retail Investors to Fight the People's War

Special Topic: Strengthening the Defense Line for the Rights and Interests of Small and Medium Investors — Sina Finance 3.15 Investor Protection Forum

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On March 13, Sina Finance held the 3.15 Investor Protection Forum, featuring a keynote speech by Professor He Qiang, Dean of the School of Finance at Central University of Finance and Economics and Honorary Director of the Securities and Futures Research Institute.

When discussing how to deepen market manipulation regulation, He Qiang used “matched trading” as an example to analyze the difficulties and countermeasures of regulation. He pointed out that “matched trading” (buying and selling between different accounts to artificially boost or suppress stock prices) is explicitly prohibited in the Securities Law, but its operations are covert, making investigation costly and difficult. Criminals may use a series of complex operations to easily inflate stock prices for profit, while regulators need to spend significant resources investigating fund flows, communication records, and actual control relationships.

He suggested encouraging investors to take screenshots and keep evidence of abnormal trading data during their daily market analysis (such as large transactions far from market price or suspicious continuous matched trades) and report them to regulatory authorities. The China Securities Regulatory Commission (CSRC) can learn from the People’s Bank of China’s Anti-Money Laundering Bureau’s work mechanism to filter and analyze collected clues, focus on investigating suspicious cases, and impose heavy penalties once confirmed.

“If we can actually identify a few cases and impose heavy penalties, other institutions will be less likely to use such methods,” He Qiang emphasized. He stressed that cracking down on “matched trading” is challenging but necessary. He called on regulators to increase penalties for such behaviors because they are among the most serious means currently causing stock market volatility, excessive speculation, and market manipulation, severely harming the interests of small and medium investors.

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Editor: Hao Xinyu