Anger is growing among the Chinese public after the ruling Chinese Communist Party replaced the head of its securities regulator at a time when the country’s stock market is experiencing a severe crash with stocks plummeting and the overall economy slumping. China’s stock market hit its lowest points in years just last week and this has seriously impacted the confidence of investors both domestically and abroad. It is estimated that 200 million Chinese have invested in the Chinese stock market and many of them are using social media accounts of the U.S. and Indian embassies to voice their anger and request assistance.
On February 7, China’s official state mouthpiece Xinhua announced the dismissal of the chairman of the China Securities Regulatory Commission, Yi Huiman, and his replacement by Wu Qing. This sudden decision has attracted the attention of various observers who noted that the Organization Department of the CCP did not issue any internal announcements prior to the decision. According to analysts, the swift manner in which the decision was made shows that China’s financial market is in a state of crisis.
In an effort to prevent the stock market from declining further, the China Securities Regulatory Commission issued orders to restrict short-selling and placed a ban on stock pledging, securities lending, and also vowed to crack down on short-selling methods for illegal escape and gain. This has led to widespread anger among Chinese stockholders with many expressing their frustrations on social media. However, the restrictions have not had the desired effect and the stock market continued to fall with global investors continuing to sell Chinese stocks.