SHANGHAI Nov 30 China's police body has set up
five specialist units to deal with financial crime, including
securities fraud, which is becoming increasingly
professionalised, the official Xinhua news agency reported late
The new units, jointly set up by the Ministry of Public
Security and the China Securities Regulator Commission (CSRC),
will be based in northeast China's Liaoning province as well as
the cities of Shanghai, Chongqing and Qingdao and Shenzhen,
Xinhua said. They will investigate and research securities and
tax fraud cases and also provide specialist training.
The Ministry of Public Security and the CSRC have been
holding joint training sessions to combat financial crime after
"irregularities" in the country's stock markets last year,
Authorities blamed last year's stock market crash on market
manipulation, and the CSRC has come under increasing scrutiny.
Earlier this year, China's corruption watchdog accused the
securities regulator of allowing the families of its officials
to trade in stocks, which is illegal.
CSRC has also been cracking down on illegal margin
financing, or the use of borrowed money to bet on stocks, which
is believed to be a major driver of the stock market bubble last
(Reporting by David Stanway; Editing by Michael Perry)