China to hit insider trading

Xinhua Beijing, May 18 (reporter Mashucun Cao Shaofan) Recently a number of Chinese securities, corporate executives suspected of illegal operation of the "Lok Ma", once again sparked public concern about China's crackdown on insider trading, vigorously rectifying the financial securities market. China Galaxy Financial Holding Co., Ltd., the relevant person responsible for 15th confirmed that the Galaxy Securities former President Xiaoxing was arrested on suspicion of bribery on May 13 17 o'clock.　　National Gold Securities on May 13 evening to the outside world, chairman of the president of the money for personal reasons are being investigated. Prior to that, the CSRC May 12 reported three insider trading cases including high Tech Zhang Copper Co., a listed company in Sichuan Province and Xiamen Chuang Hing Property Co., Ltd.　　The illegal activities involved in the case include fraudulent issuance, disclosure of important information, insider trading, breach of faith, damage to the interests of listed companies, and the use of reorganization of insider information to deal with the stock of listed companies and obtain huge profits and other insider trading.　　Li Jing, a researcher at the Securities and Futures Research Institute at the Central University of Finance and Economics, told reporters that 80% of the irregularities in China's securities market were related to insider trading, which impaired the interests of investors. Yin Chengli, director of Chinese Academy of Social Sciences, said that insider trading, market manipulation and other illegal activities are common in all countries around the world, and China's market is no exception.　　The legal system is not perfect, the punishment is not enough, cause all kinds of nonstandard behavior of Chinese securities market always exists.　　Li Jing also believes that one of the major causes of the problem is that China's securities market laws and regulations are too macro-regulation of securities market irregularities, lack of clear rules, resulting in poor operability.　　An unnamed lawyer in Beijing told reporters that most of the penalties involved in the securities market were limited to fines and revocation of licences.　　In addition, the industry self-regulation is weak, some of the provisions in the industry to make the regulatory mechanism can not effectively play, but also hindered the healthy development of China's securities market.　　In recent years, with the explosive growth of the entire financial industry, the Chinese government has stepped up its efforts to rectify the financial order and strengthen its management of the securities market. November 2007, China Securities Regulatory Commission set up an inspection corps, the securities market formation of vertical supervision, inspection first, with quasi judicial power.　　In January this year, the Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Public Security and the Securities and Futures Commission issued a circular on issues related to the regulation of illegal securities activities, clarifying the nature of illegal securities activities and cracking down on illegal securities activities.　　In February this year, the "Criminal Law Amendment (vii)", the Securities, futures trading in the "mouse warehouse" and other insider trading activities increased the penalties, the highest can be 5 years or more than 10 years of imprisonment, and the illegal income of 1 time times more than 5 times times the following fines.　　As of the end of March this year, since 2008, the SFC has transferred 19 cases of suspected crimes to public security organs, including 6 cases of listed companies, insider trading case 8, manipulation of the market case 2, illegal operation of securities investment advisory Business case 2, financial institutions staff misappropriation of funds case 1. Although asIn this regard, experts believe that the global security market in China is still an emerging market, China's crackdown on securities market violations.　　Experts suggest that the relevant laws and regulations should be adjusted according to market changes in time, complement and improve, while increasing efforts to combat illegal activities. Li Jing said that we should further improve the prohibition of insider trading laws and regulations, not only rely on criminal law, but also rely on civil, economic and administrative regulations combined and used to deal with illegal activities.　　At the same time, he said, "Detailed regulatory objectives, clear insider trading, such as the specific forms of misconduct, so that can be targeted." "Self-discipline in the industry also needs to be strengthened and a scientific defense system established to enable listed companies to disclose information in a timely, comprehensive, truthful, accurate and fair manner," he said.