China's securities regulator has launched a new enforcement campaign to crack down on market manipulation.

Zhang Xiaojun with the China Securities Regulatory Commission says 16 separate cases are already under investigation.

"The cases being investigated are those typically ones that involve the fabrication and spreading of false or misleading information."

The cases under investigation mostly involve articles written about the potential merger and acquisitions of listed firms, as well as false reports from investment consultants.

At the same time, regulators are also working on more specific rules to deal with margin trading.

Margin trading allows traders to borrow money for investments based on the value of their stock portfolio.

The trading technique has been exploding in popularity among traders in China, with the balance of margin trading doubling so far this year to some 2-trillion yuan.

However, margin trading has the potential to do significant damage to the market if left unregulated.

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