Chinese shares dip amid crackdown on market manipulation

Beijing, Aug 31  Chinese shares on Monday were back in negative territory, following substantial gains on Thursday and Friday, as the government continued to investigate allegations of market manipulation.

The benchmark Shanghai Composite Index dipped 0.89 percent at 3,203.56 points.

The Shenzhen Component Index opened 0.87 percent lower at 10,706.23 points, Xinhua news agency reported.

The ChiNext Index, China’s NASDAQ-style board of growth enterprises, opened 1.24 percent lower at 2,056.29 points.

A journalist, an official with China’s securities watchdog and four senior executives of CITIC Securities, China’s largest brokerage, were placed under “criminal compulsory measures” on Sunday for market manipulation and trading violations.

Since mid-June, China has rolled out a slew of measures to stabilize its volatile stock market, with a focus on pumping funds into the system.

Despite this, key indices have continued to nosedive over the last fortnight. This crackdown on illegal trading indicates that the government is diversifying its measures.