BEIJING — China's stock market regulator is preparing to slap heavy fines on 18 companies for "illegal market activities", as it struggles to restore confidence after a months-long share price rout.
The China Securities Regulatory Commission (CSRC) said on Friday that fines totalling 1.1 billion yuan (US$173 million) would be levied against the companies and 13 individuals for violations including "market manipulation".
It said it would also confiscate 329 million yuan from the companies and individuals involved.
China is struggling to restore confidence in its stock markets, which most foreign investors regard as casinos that are best avoided. Beijing has intervened on a broad scale amid months of declines that began in June and roiled exchanges worldwide.
It earlier banned shareholders holding at least 5% stakes and company executives from selling stock, as part of its "rescue package" aimed at boosting the market.
Analysts have criticised China's intervention — costing tens of billions — in its stock markets, with the chief of Goldman Sachs this week calling it "ham-handed" and "sloppy".
"They don't have a lot of experience in this market stuff," Lloyd Blankfein said, referring to the ruling Communist authorities.
Unlike most of its peers in other countries, China's stock market has little connection with economic fundamentals, and small retail investors account for 80% of turnover as many institutions avoid equities. But the rout has added to fears about the country's growth.
The Communist party, meanwhile, said this week that it was investigating an assistant chairman of the CSRC for possible corruption.