What Loss Of Control Looks Like: Chinese Regulator Urges Traders To Rat Out "Malicious Sellers"

After pledging a whopping 10% of China's GDP, or just about $1 trillion, to its various (at last check over 40) discrete measures to prop up its collapsing market, among which such threats as arresting shorters of stock and "malicious sellers", actions which have merely slowed down the bursting of the world's biggest stock bubble in recent years, China has finally reverted to what the communist regime does best to preserve "order" - implement witch hunts in which the population rats out any criminals who dare to go against the protocols of the communist party. In this case, the targets are "malicious sellers" with the regulator adding that those found guilty of shorting will be "dealt with severely."

This is what appeared moments ago on the website of the Chinese stock market regulator, the CSRC - an interactive online box allowing "traders" to rat out anyone who sells... maliciously (as opposed to non-maliciously).


Google translated:

Online Reporting Notes


Note: This website is in trial operation stage, the event can not normally access, please understand!


According to "securities and futures law violations Report Interim Regulations", the Center received reports meets the following conditions:

  1. to report the matter belongs to China Securities Regulatory Commission and the various supervisory duties range;
  2. provided by an informer's name (name), identity and other information;
  3. to provide violate securities and futures laws and administrative regulations of specific facts, clues or evidence.

The same illegal behavior securities and futures are reporting has been accepted or processed, no new facts or clues of informants to report when no longer be accepted.


Second, note

  1. to encourage real name, real name informants should provide my real name (name) when making a report, document number and valid identity information telephone number.
  2. Respond limited real name reporting centers and Zhengjianju accepted.
  3. please fill out the form to report each item. Fill out the "summary report the matter," a time, to write clearly illegal acts involving personnel, time of occurrence, and the main evidence and other circumstances, limited to 500 words or less.
  4. marked with "*" are required items.
  5. informants should be realistic, not fabricate facts, falsification of evidence, cheat reward or false accusation against others. Report defraud reward for the use or bringing false charges against others, shall bear The corresponding legal responsibility.
  6. China Securities Regulatory Commission and each will be in strict accordance with the relevant provisions of confidential informants and report content.

The new policy is already "working":

And that, dear readers, is what total loss of control looks like.

* * *

Instead of repeatting what we have said countless times about what happens when a government finally loses control of not one but numerous credit-driven bubbles of which China now has at least three (the downside is clear: social unrest, rioting, perhaps even civil war should stocks resume their crash to a fair value which BofA said last night is 50% lower from here) here is the running commentary from SCMP's George Chen, whose views on the matter are identical to ours.

Here one wonders why what the Fed and its peer central planning banks have done, by throwing trillions in fresh funds at an identical problem - of both asset values and collapsing confidence in capital markets - across the globe, is any different.

As for China, our visual summary from three weeks ago is more accurate now than ever: