The Ministry of Public Security said Thursday it is planning a nationwide campaign to crack down on illegal operations in the field of securities and futures to protect the order of capital markets and investors' interests.
A statement from the ministry said it is judging and analyzing the "abnormal volatility" of the stock market with the China Securities Regulatory Commission (CSRC).
It said police should closely cooperate with regulators in handling cases involving insider trading and leaking inside information.
Those who fabricate and disseminate false information on trading securities and futures as well as those who manipulate markets will also be probed and punished, according to the statement.
The ministry asked police to carry out a swift investigation into evidence related to "malicious short selling" and deal with them according to law.
On Thursday morning, Vice Minister of Public Security Meng Qingfeng led a team and visited the head office of the CSRC, a sign that authorities will severely punish operations that violate laws and regulations.