China's securities regulator has stressed that it would stand by its recent market-stabilizing rules and maintain its hard-line stance on share dumpers.
Deng Ge, the spokesperson for the China Securities Regulatory Commission (CSRC), said, "I think major shareholders and real controllers of listed companies shoulder the responsibility for protecting the legal rights of the medium-and-small shareholders and for maintaining the stability of the market. From the frequent illegal selling of shares and short-swing trading, we can see some of the major shareholders and company controllers lack legal awareness and honesty."
Since early July, the government has banned major shareholders, corporate executives and directors who hold more than five percent of a company's shares from selling stakes in listed companies for six months.
Deng said the commission completed the review of 41 alleged instances of illegal dumping of shares.
He adds that five cases of market manipulation will be dealt with.
China's stock markets have continued wild swings in recent months despite government intervention.
