The article below is an excerpt from a lecture that Qiao Liang, a professor at China National Defense University, gave at the 2015 Summer Industry Investment Forum. The article was first published on Huanqiu (Global Times). Later a top Chinese military newspaper website www.81.net and many other top Chinese websites republished it.
The Beijing News: Chinese Police Take Action against Malicious Short Sellers
On July 14, 2015, The Beijing News published an article on new findings from a recent investigation on “Malicious” short selling of A-shares (Chinese domestic stocks).
On July 9, 2015, Vice Minister of China’s Public Security Meng Qingfeng entered China Securities Regulatory Commission with a police team in order to look for “malicious” short sellers. On July 12, 2015, the Ministry of Public Security in conjunction with the China Securities Regulatory Commission discovered some clues leading to the crimes of “malicious” short selling of stocks and indexes. Some trading companies have been involved in manipulating securities and futures exchanges. China’s Public Security Ministry and the China Securities Regulatory Commission will take action against “hostile short sellers.”
Source: The Beijing News, July 14, 2015
http://www.bjnews.com.cn/finance/2015/07/14/370518.html
FT Chinese: Offshore Funds Are Leaving the Chinese Stock Market
On July 15, 2015, Financial Times Chinese published an article on its website titled, “Offshore Funds Pull Out of the Chinese Stock Market.” The article stated, “As of yesterday, global investors had been pulling capital out of Chinese stocks via Shanghai – Hong Kong Stock Connect for seven straight trading days. Since July 6, 2015, overseas buyers have liquidated 44.2 billion Chinese yuan (about 7.1 billion US dollars) from their Chinese stock holdings via the Stock Connect trading link between Hong Kong and Shanghai.
Beijing initiated tough rescue measures to save China’s stock market. It is allowing more than half of listed companies to suspend stock trading. Major shareholders have been banned from selling any shares of their stocks. China’s Central Bank has injected liquidity into the stock market.
For now, the rescue efforts have succeeded in containing the panic in the stock market. "Some rescue measures, however, have shocked Western investors, such as requiring listed companies to report good news in order to boost the price of their stock." Many analysts have recently criticized the Chinese government’s rescue efforts. They describe the current market improvement as a government induced rebound after a decline.
Michael Lai, investment director at GAM, wrote, “The final straw was allowing half the companies listed to suspend trading, effectively turning A-shares (Chinese domestic stocks) into an unsalable market.” Some investors doubt Beijing’s ability to support the market.
Source: Financial Times Chinese, July 15, 2015
http://www.ftchinese.com/story/001063008?full=y
Xinhua: China’s Serious Soil Pollution Is Worsening
BBC Chinese: China Criticized the UN High Commissioner for Human Rights
Ukraine Has Become China’s Largest Corn Supplier
SASAC Notice: SOEs Losing Money to Reduce Financial Losses by 50 Percent over Next Three Years
According to China Review News, State Owned Enterprises (SOEs) were first given the direction to “increase revenue and reduce spending.” Then recently, the State-owned Assets Supervision and Administration Commission (SASAC) issued another notice urging SOEs that are losing money to reduce their financial losses by 50 percent over the next three years. The article said that, in order to reach the target, in addition to increasing revenue and reducing spending, the SOEs will need to improve their internal controls and speed up the reform and reorganization process, especially regarding the control of SOE asset loss.
Source: China Review News, July 8, 2015
http://hk.crntt.com/doc/1038/3/4/0/103834024.html?coluid=45&kindid=0&docid=103834024&mdate=0708103814
RFA: Rights Lawyers in China threatened and Forced to Speak Up Outside the Court System
Radio Free Asia (RFA) carried an article which stated that, after Wang Yu, a rights lawyer in Beijing was detained on July 9, the authorities threatened close to 100 rights lawyer and human rights activists. One rights lawyer told RFA that the police said that if they don’t stop spreading the news about the Wang’s arrest the police will go after and harm their family members. China’s official media also carried an article on July 11 attacking the rights lawyers for “stirring up” sensitive cases and openly “confronting the court.” Based on an analysis from the human rights experts, contradicting the official media reports, lately the rights lawyers have frequently being cut off during their speeches in court. Their right to defend [their clients] and their legal licenses have been threatened as well. The article said that this situation has forced them to speak up outside of the court.
Source:
Radio Free Asia, July 12, 2015
http://www.rfa.org/mandarin/yataibaodao/renquanfazhi/yf2-07122015112404.html
People’s Daily, July 12, 2015
http://politics.people.com.cn/n/2015/0712/c1001-27290030.html