visimoney
TLDR:
- Wu Qing, also known as the “Broker Butcher,” has returned as head of the China Securities Regulatory Commission (CSRC).
- Wu Qing is cracking down on algorithmic short sellers and quantitative traders to stabilize Chinese stock markets.
Wu Qing, known as the “Broker Butcher” for his tough stance on securities dealers in the 2000s, has returned as head of the CSRC in China. He has wasted no time in clamping down on algorithmic short sellers and quantitative traders, aiming to stabilize the country’s volatile stock markets. Under his leadership, the CSRC has implemented a “zero-tolerance” policy for malicious short-selling and has frozen the accounts of top quant traders, causing significant market turmoil.
Despite his reputation as a strict enforcer, Wu Qing is not against market forces. As a Ph.D. economist with experience overseeing the Shanghai Stock Exchange, he has garnered praise from global capitalists for his regulatory efforts. By targeting high-frequency traders and quant funds, Wu Qing hopes to make Chinese markets safer and increase investor confidence.
During Wu Qing’s first two weeks back at the CSRC, Hong Kong-listed Chinese stocks saw a 6% gain, reversing months of decline. However, analysts remain skeptical about the long-term impact of his return, as Chinese equities have plummeted by 60% in the past three years. Some view Wu Qing’s reappointment as a scapegoat for market struggles, rather than a solution to deeper-rooted issues.
