Executives of the China Securities Regulatory Commission (CSRC), the key unit to regulate China's stock market. The picture is taken when the CSRC announced stock market support measures last August./ Source from Xinhua News Agency

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By Hong Soon-do, Beijing correspondent, AsiaToday - Chinese authorities are expected to shore up shaky stock market by punishing those disturbing the market, rather than focusing on support measures. In order to do this, it seems clear that Chinese police will actively crack down on what they say is illegal manipulation of the stock market further in the future. In other words, China is attempting to stabilize its stock market by turning its attention to the fundamental situation that causes disorder on its stock market.

Such atmosphere is clearly seen on the Chinese authorities' detention of stock market 'rumormongers'. The Xinhua state-run news agency reported on Monday that those involved include Wang Xiaolu, a leading journalist at leading Chinese financial publication Caijing magazine, and Ouyang Jian, a former manager of the CSRC's inspection team. They are reportedly suspected of disturbing the market. Wang Xiaolu was held for fabricating and spreading fake information on securities and future market.

The charge of Liu Shufan, an official of the CSRC, isn't simple. Mr. Liu is reportedly held on suspicion of taking a significant economic benefit by spreading false information. Also, four senior executives of the country's major securities dealer are arrested without warrant on suspicion of insider dealings and disturbing stock market.

The CSRC is also chasing malicious short-selling that the government has been blaming for the market turmoil. Many suspects have been already arrested for investigation. It's for sure that they will be strongly punished if the allegations are proven.

There is no need to tell about arresting a great number of netizens for alleged online rumor-mongering about China's stock market. A senior official at a securities firm said, "The problem of the Chinese stock market is connected with psychological panic. Definitely, there are people who are shaking the market by misusing this. If they are not eradicated, the government's support measures won't be effective."

A foreign media outlet said that the government had decided to abandon attempts to boost the stock market. However, the government has no choice but to stabilize the market. This is why China is stepping up efforts to punish those destabilizing the market.