Regulators take control of stock markets, replace Shanghai exchange chief
Aug. 15, 1997
SHANGHAI, China (AP) _ Moving to tame China's unruly financial markets, Beijing's top securities watchdog has taken direct regulatory control of the Shanghai and Shenzhen stock exchanges.
The China Securities Regulatory Commission also has replaced the chief of the Shanghai Stock Exchange, official reports said Friday.
The decision to grant direct control of the stock markets to the commission came from the State Council, China's Cabinet. The exchanges were previously overseen by local governments.
The notice in the Shanghai Securities News gave no reasons for the shakeup, including the replacement of Shanghai exchange chief Yan Xianghai with Tu Guangshao.
Yang's oversight of the exchange came under fire after massive speculation and price manipulation sent share prices soaring late last year and early this year. His departure had been rumored for months.