Financial Times: SEC targets US companies allegedly involved in China's stock price manipulation eyewash.

According to a report by the Financial Times on September 10, the SEC is targeting US companies suspected of being involved in a scheme to “manipulate stock prices” related to China.

This regulatory action focuses on U.S. companies that may assist or participate in manipulative trading activities originating from Chinese businesses. Pump-and-dump schemes typically involve artificially inflating the price of securities through misleading marketing and then selling the stocks at a high price, resulting in losses for other investors when the price crashes.

Reports indicate that the enforcement actions by the U.S. SEC are part of a broader effort to combat market manipulation involving multinational participants in the U.S. market.