China stocks czar faces battle to win back investor trust

(Reuters) – In little over six months as China’s top securities watchdog, Guo Shuqing has let loose a flurry of reforms targeting insider trading, market manipulation and dodgy disclosure that have hamstrung China’s stock markets even as its economy surges.

But China’s more than 72 million retail investors, who account for about three-fourths of trading on the domestic stock exchanges and have been burned repeatedly in the weak and volatile markets of recent years, remain skeptical.

In the stock markets, where “rat traders” and “black mouths” routinely make headlines with insider trading scandals and pump-and-dump schemes, Guo has his work cut out for him.