China Connect showing its teeth - first CSRC sanction against manipulative trading through cross-border stock connect

On 10 March 2017, the China Securities Regulatory Commission (“CSRC”) published a decision sanctioning two individuals for the manipulative trading of securities (Chinese page).

This is the first ever such sanction for activities committed through the China Connect mechanism: in this case the two individuals sent trading instructions through Hong Kong brokers and orders were routed onto Shanghai Stock Exchange (“SSE”) as China Connect northbound trades.

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