According to Wu Zongchuan, a partner of Beijing Yingke (Chengdu) Law Firm, since the concept of "malicious short selling" is not explained in the Securities Law, the relevant content should be traced back to the definition of "price manipulation", that is, the so-called manipulation of the trading price of securities and futures.
Article 77 of the Securities Law and Article 7 1 of the Regulations respectively explain several forms of market manipulation, including, alone or through collusion, concentrating capital advantages, holding stock advantages or using information advantages to jointly or continuously buy and sell, trading with oneself and a free account, and so on.
Violators will be subject to relevant administrative penalties, confiscate their illegal income, and impose a fine of more than one time and less than five times their illegal income; If there is no illegal income or the illegal income is less than 300,000 yuan, a fine of more than100000 and less than1000000 will be imposed. At the same time, it can be announced that the relevant personnel are prohibited from entering the securities market or the futures market for life.
Worse, it may violate Article 182 of the Criminal Law, that is, the crime of manipulating the securities and futures market;
According to the regulations, whoever manipulates the securities and futures market in any of the following circumstances, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and shall also or only be fined; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years, and shall also be fined:
(1) Individually or in collusion, concentrating capital advantages, holding shares or positions, or using information advantages to jointly or continuously buy and sell, and manipulating the trading price or trading volume of securities and futures;
(2) colluding with others to trade securities and futures with each other at the time, price and manner agreed in advance, which affects the trading price or volume of securities and futures;
(3) Trading securities between accounts under its actual control, or buying and selling futures contracts on its own, which affects the trading price or volume of securities and futures.
(4) manipulating the securities and futures markets by other means.