This photo taken on Feb 17, 2023 shows a view of the China Securities Regulatory Commission (CSRC) in Beijing, capital of China. (PHOTO / XINHUA)

BEIJING - The China Securities Regulatory Commission on Thursday said that it will guide the Shanghai Stock Exchange, the Shenzhen Stock Exchange and the China Financial Futures Exchange to strengthen their standards of supervision for abnormal transactions. 

The regulator said in a statement on its website that it will crack down on illegal activities such as market manipulation and insider trading in accordance with laws and regulations.

These efforts are for maintaining the market's normal trading order, said the CSRC.

"Regulatory authorities do not interfere with normal market transactions, and we seek to protect investors' rights to fair and free transactions in accordance with the law. However, we will resolutely crack down on illegal activities that disrupt the market trading order, in accordance with laws and regulations," the regulator said.

In this undated file photo, investors check share prices at a securities brokerage in Fuyang, Anhui province, China. (PHOTO / FOR CHINA DAILY)

Recently, the Shanghai and Shenzhen stock exchanges took regulatory measures to crack down on the abnormal trading behavior of an institution in accordance with regulations, according to the CSRC statement.

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"That's fulfilling their trading supervision responsibilities, not limiting share selling," the statement read.

On Feb 19, the Shanghai and Shenzhen stock exchanges issued separate statements that named Lingjun Investment, a major quant fund, as an entity that had disrupted orderly market trading. The exchanges also announced penalties for the company, including open censure and a restriction on trading for a stated period of three days.