Main to remember
- The SEC focuses on American companies linked to Chinese and Chinese defense suspected.
- Regulatory actions aim to combat facilitation or participation in manipulative trade by American companies.
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The Securities and Exchange Commission targets American companies linked to the suspect regimes of Chinese “pumping and discharge”, according to a report by the Financial Times today.
Regulatory action focuses on American companies that have been able to facilitate or be involved in manipulative negotiation practices from Chinese operations. The pump and discharge patterns generally involve artificially inflating the price of a guarantee by misleading marketing before selling stocks at a high price, leaving other losses to other investors when the price collapses.
The actions to apply the law of the SEC represent part of the wider efforts to suppress market manipulation regimes that cross international borders and involve actors of the American market.
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