What Is Market Manipulation?

The so-called market manipulation, also known as market manipulation, refers to the use of capital, information, and other advantages of the operator to manipulate the securities market artificially by using improper means to manipulate or affect the price of the securities market in order to induce securities investors to blindly trade securities. In order to seek benefits for themselves or pass on risks. Market manipulation will inevitably distort the supply-demand relationship of securities, cause market mechanisms to fail, and form monopolies, hinder competition, and at the same time induce excessive speculation and damage the interests of investors. Therefore, the Securities Law expressly prohibits such behavior, and also stipulates that if the manipulation of the securities market causes losses to investors, the actor shall be liable for compensation in accordance with the law. ^[1]

Market manipulation

The so-called market manipulation, also known as market manipulation, refers to the use of capital, information, and other advantages of the operator to manipulate the securities market artificially using improper means to manipulate or affect the price of the securities market in order to induce securities investors to blindly trade in securities. In order to seek benefits for themselves or pass on risks. Market manipulation will inevitably distort the supply-demand relationship of securities, cause market mechanisms to fail, and form monopolies, hinder competition, and at the same time induce excessive speculation and damage the interests of investors. Therefore, the Securities Law expressly prohibits such behavior, and also stipulates that if the manipulation of the securities market causes losses to investors, the actor shall be liable for compensation in accordance with the law. ^[1]

Manipulation, also known as market manipulation, refers to an individual or a group that uses its capital advantage, information advantage or shareholding advantage or abuses its power to affect the securities market, and artificially creates the securities market, that is, to raise, Driving down or even stabilizing the price level of a certain type of securities makes it impossible for the supply and demand relationship in the securities market to exert its auto-regulating role, and induces general investors to blindly follow and participate in trading, so as to gain benefits for themselves.

1. Buy at a price much higher than the market price;

Second, it is to buy quickly and in stages at high prices in sequence;

Third, compared with the market size, its purchase volume is too large.

Fourth, it is thrown at a price much lower than the low market price, and then bought.

Buying and selling falsely.

Also known as

Case manipulation SST Chinatex stock price

During the 51 trading days from April 18, 2006 to July 20, 2006, 67 of them were controlled by it

On August 28, 2015, Zhang Xiaojun, a spokesperson for the China Securities Regulatory Commission, stated at a regular press conference that the Securities Regulatory Commission recently transferred 22 suspected crimes to the Ministry of Public Security. Since 2015, the total number of cases in which the CSRC has officially initiated criminal transfer procedures has reached 48.

Zhang Xiaojun said that the 22 cases included criminal acts such as suspected market manipulation, insider trading, transactions and fabrications using undisclosed information, dissemination of false information, and illegal business operations. Among them, 3 cases were suspected of market manipulation, especially cases of using market value management and other means to cover information manipulation. The relevant illegal entities and professional traders conspired to manipulate stock prices. Through listed companies' "composition and storytelling", the traders were synchronized in two The level of the stock market increased, spurring the stock price to rise sharply, and the amount of illegal profits was huge; 7 cases of suspected insider trading, the relevant insider trading plots were serious, and many involved securities practitioners.

In related cases, insider insiders not only engaged in insider trading by themselves, but also leaked insider information to relatives and friends for insider trading, making illegal profits; 6 cases involving transactions involving undisclosed information, some with huge transaction amounts and illegal Profits amounted to 100 million yuan; 6 cases of suspected fabrication and dissemination of false information and illegal business operations in securities, many of which fabricated and disseminated false information on mergers, acquisitions, and restructuring of companies through online platforms such as the media and stock bars, which affected stock prices and took advantage of opportunities to make profits. ^[5]