The Chinese government has launched a crackdown on hundreds of unregulated electronic equity and futures exchanges that have sprung up in recent years to trade everything from fine art and commodities to insurance products. The exchanges had been approved by local governments hoping to foster financial markets in their jurisdictions. A task force will check the exchanges and those engaged in “unauthorized and illegal” activities would be shut down. Apart from the country’s two main stock exchanges, three commodities exchanges and one financial futures exchange, no other exchanges are allowed. Even the use of the name “exchange” in Chinese will be strictly regulated from now on and must be approved by provincial-level authorities following consultations with the China Securities Regulatory Commission (CSRC). “Serious speculation and price manipulation has occurred” at some exchanges and cases of embezzlement and fraud have also emerged, the government said. Chinese analysts estimate there are over 300 exchanges, up from just a handful five years ago. In the first 10 months of this year, 58 new exchanges were established, according to reports. Beijing-based Hantang Artworks Exchange, where investors could trade shares in precious artworks owned by the exchange, announced it was halting all trading immediately following the government’s orders, the Financial Times reports.