Insider Trading Is Hindering Development of Stock Market

A series of investigations into apparent market violations emerged after the recent stock market turmoil, bringing down Zhang Yujun, an assistant chairman at the China Securities Regulatory Commission (CSRC); Cheng Boming, general manager of CITIC Securities; and four other senior CITIC executives.

China's stock market went on a rollercoaster ride in the first half of the year, then tumbled after a bullish surge. Authorities have taken various measures to boost the market, shelving a promise to let it be more independent. However, some of those measures have done little to restore investor confidence.