Chinese Financial Journalist Arrested And Confesses To Igniting Market Panic
A Chinese financial journalist has “confessed” to causing “panic and disorder” on China’s stock market and inflicting “huge losses on the country,” state media reported Sunday.
Wang Xiaolu, a journalist with Caijing magazine, was arrested by Chinese authorities following China’s recent stock market crash.
Wang was held for fabricating and spreading fake information on securities and futures market, according to Xinhua, a state-run news agency.
According to the report, Wang “confessed” that his “false information” had “caused panics and disorder at the stock market, seriously undermined the market confidence, and inflicted huge losses on the country and investors.”
Wang wrote a story in July saying the securities regulator was studying plans for government funds to exit the market. The China Securities Regulatory Commission (CSRC) denied the Caijing story, labeling it “irresponsible”.
But Caijing said it “defended journalists’ rights to do their duty under the law,” according to a statement posted on its website.
Chinese authorities had also detained an official from China’s securities watchdog and 4 senior executives of the country’s major securities dealer for “stock market violations”.
Liu Shufan, an official with the CSRC was held on suspicion of insider dealings, taking bribes and forging official seals, said the report. Liu “confessed” that he has forged official seals to fake a court ruling on divorce and taxation certificates for his mistress.
Formal arrest in China normally comes after some time in police detention, when the case is handed to prosecutors, with trial and conviction almost guaranteed.
It is reported that 197 people have been punished in a special campaign by Chinese police targeting online rumors about China’s stock market, the recent fatal explosions in Tianjin and “other Key events”.
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Paul Ebeling
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