China's stock watchdog says its clampdown on illicit securities trading will not impact the market, after shares slumped unexpectedly on Monday.
The China Securities Regulatory Commission, or CSRC, says it had cleaned up over 60 percent of trading accounts suspected of illegal financing by last Friday. And it will continue to crack down on capital that enters the market via illegal channels to reduce risks and deflate bubbles.
CSRC spokesperson Deng Ge says more than 75 percent of the suspect accounts were legalized, and only 6 percent were closed. This means there was not much forced liquidation. The CSRC says that given the situation, the clean up will not have a significant impact on the market.