China’s financial markets regulator on Friday threatened to increase penalties for fraud, embezzlement and other types of fraud, Reuters reported.

The Securities and Exchange Commission (CSRC) announced in its first press conference since the appointment of Wu Qin, dubbed the “broker butcher”, that it would “more precisely” target market manipulation and insider trading, intending to close “loopholes” in regulatory acts.

The CSI300 index, which includes the top 300 Chinese companies listed on the Shanghai and Shenzhen stock exchanges, rose for a ninth straight day on Friday as local investors expected tougher rules to take effect.

China’s stock market has risen 12% in recent days after falling to a five-year low in early February.

China’s stock markets as a whole have fallen to a five-year low since January amid major housing turmoil and other structural problems weighing on the Chinese economy after years of impressive growth over the past decade.

Signs of Chinese stock market recovery after ‘butcher-broker’ brought in to stabilize situation

In the two weeks since Wu Qing was appointed head of the CSRC, after China’s stock markets lost $7 trillion in market capitalization, the regulator stepped up its scrutiny of automated trading and punished several violations of market rules.

“The penalties will become increasingly severe and the cost of breaking the law will become increasingly high,” said Lee Ming, head of the CSRC’s enforcement division.

“For the market to be prosperous and prosperous, it is important that everyone believes that the market is honest and fair,” he added.

Ian Bojin, CSRC’s head of listings, said at the same press conference that the regulator had ruled that accounting fraud would be severely punished and that the agency’s agents would conduct more on-site inspections.

Investors expect the CSRC to announce further action in the coming weeks.

PHOTO Article: Mrchan | Dreamstime.com.