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China is going through its financial system with a fine tooth comb to weed out any potential dodgy dealings that could be hazardous to their economic stability.

The Shanghai Stock Exchange is looking at all corporate actions through the magnifying glass to pick out any that show themselves to be detrimental to their financial market, official state media Xinhua reported Saturday.

They are looking for transparency in all business dealings to stop companies clouding the real reason behind deals by using complexity of agreements to transfer ownership, the report stated.

This step up in ensuring companies are doing things by the book is a backlash due to a recent business deal between private conglomerate Dalian Wanda and publicly-listed real estate developer Sunac, the companies in question used an unconventional deal structure, this resulted in concerns in both industry and government.

Officials in the Chinese capital have been looking at ways to stiffen regulatory oversight to boost investor confidence after a giant stock market crash in 2015 wiped out trillions in market value.

This is to deal with any problems before they arise that could further weaken market stability they saw recently because of the slowing of growth in the economy. Analysts expect that downward growth trend to continue, which would likely affect company performance.

“China’s economy is showing signs of peaking as the positive factors — exports, industrial investment and property investment — supporting the economic rebound in 2017 may start to lose steam in 2018,” Credit Suisse analyst Vincent Chan wrote in a recent note. “We believe the earnings upgrade cycle is coming to an end.”

The tightening of regulation is also in no small part because of the huge flow of capital leaving the peoples republic, as companies expanded overseas at an extreme rate, with an astonishing $200 billion in outbound deals last year, according to Dealogic.

Beijing is looking to slow the amount of capital reaching shores afar as they want to limit the exposure of companies and control debt levels. Many of those firms investing internationally are private with publicly listed subsidiaries.

Last week, an industry group controlled by the country’s securities regulator also banned more than 1,000 funds and individuals from investing in IPOs for up to a year — part of wider efforts to crack down on market manipulation.

Liu Shiyu, the head of the China Securities Regulatory Commission, “has so far slow-rolled or watered down the most promising reforms,” Christopher Beddor, who covers Asia for consultancy Eurasia Group, said in a note.

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