"China has embarked on a criminal pursuit of rogue banks and brokerages in a crackdown designed to stop money fleeing the country as it struggles to stave off a stock market collapse.
Authorities are investigating five of the country's biggest brokers and have launched a probe on "underground banks" for evidence of financial malpractice, which they claim has helped trigger record levels of capital flight.
Beijing has been battling to protect the value of its currency, driving down its reserves, and halt panic selling on the country's stock exchange. Pawn shops in the gambling hub of Macau have been raided, and 17 people arrested on charges of bank card fraud this week. Xinhua, China's official news agency, has called for a “purification” of the capital markets and blamed banks for illicit moves that have intensified the country's market crisis.
Chinese law prevents individuals from transferring more than $50,000 out of the country every year, but underground banks have thrived as a channel to send money out of the country. These activities now pose a threat to the country's "financial safety" and foreign exchange regime, said Meng Qingfeng of the Ministry of Public Safety. "
Source: China cracks down on 'rogue' traders as Black Monday fears come back to spook investors - Telegraph
Go get those dirty spekulants!
Authorities are investigating five of the country's biggest brokers and have launched a probe on "underground banks" for evidence of financial malpractice, which they claim has helped trigger record levels of capital flight.
Beijing has been battling to protect the value of its currency, driving down its reserves, and halt panic selling on the country's stock exchange. Pawn shops in the gambling hub of Macau have been raided, and 17 people arrested on charges of bank card fraud this week. Xinhua, China's official news agency, has called for a “purification” of the capital markets and blamed banks for illicit moves that have intensified the country's market crisis.
Chinese law prevents individuals from transferring more than $50,000 out of the country every year, but underground banks have thrived as a channel to send money out of the country. These activities now pose a threat to the country's "financial safety" and foreign exchange regime, said Meng Qingfeng of the Ministry of Public Safety. "
Source: China cracks down on 'rogue' traders as Black Monday fears come back to spook investors - Telegraph
Go get those dirty spekulants!
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