Market manipulation probe fuels concern for Chinese small caps

Shanghai

AN investigation into stock market manipulation in China is spurring concern of further losses for shares of smaller companies after a benchmark gauge plunged by the most in a year.

The China Securities Regulatory Commission is probing companies and individuals involved in suspected market manipulation on 18 stocks and has set up a task force, the regulator said in a Dec 19 statement on its microblog, citing an unnamed spokesman. Most of these stocks are small companies listed in Shenzhen, according to the statement.