Probe nets 3 fund managers
By Winny Wang |
November 7, 2009, Saturday
|
Print Edition
Print Edition
Three fund managers are suspected of insider trading after the Shenzhen branch of China's stock regulator started an investigation as part of its battle on securities-related crimes.
The Shenzhen branch of the China Securities Regulatory Commission recently launched a probe into 14 fund companies and discovered that three fund managers may have made use of insider information to profit from the stock market. They were alleged to have made huge profit in their stock accounts ranging from hundreds of thousands of yuan to millions of yuan, the regulator's Shenzhen branch said on its Website yesterday.
If found guilty, the suspects -- Tu Qiang from Invesco Great Wall, Han Gang and Liu Hai from Great Wall Fund Management -- may be convicted of insider trading which was made an offense under the Criminal Law in February.
The law provides for a jail term of as long as 10 years and a fine of as much as five times their illicit gains.
In a previous case, the CSRC barred a fund manager Tang Jian from working in the country's capital market permanently and fined him 1.5 million yuan (US$220,000) after he was found guilty of insider trading.
China is strengthening efforts to combat misconduct after noticing a new wave of irregularities with the recovery of the stock market and resumption of initial public offerings.
Shang Fulin, chairman of the CSRC, last month called for tightened supervision over equity markets and stricter punishment for investors who try to manipulate stock prices and are involved in insider trading.
Meanwhile, the Shanghai Stock Exchange said on its Website yesterday that it has completed a probe into 185 abnormal trading cases involving listed firms and issued 70 warning letters. It has also restricted trading of some stock accounts.
The Shenzhen branch of the China Securities Regulatory Commission recently launched a probe into 14 fund companies and discovered that three fund managers may have made use of insider information to profit from the stock market. They were alleged to have made huge profit in their stock accounts ranging from hundreds of thousands of yuan to millions of yuan, the regulator's Shenzhen branch said on its Website yesterday.
If found guilty, the suspects -- Tu Qiang from Invesco Great Wall, Han Gang and Liu Hai from Great Wall Fund Management -- may be convicted of insider trading which was made an offense under the Criminal Law in February.
The law provides for a jail term of as long as 10 years and a fine of as much as five times their illicit gains.
In a previous case, the CSRC barred a fund manager Tang Jian from working in the country's capital market permanently and fined him 1.5 million yuan (US$220,000) after he was found guilty of insider trading.
China is strengthening efforts to combat misconduct after noticing a new wave of irregularities with the recovery of the stock market and resumption of initial public offerings.
Shang Fulin, chairman of the CSRC, last month called for tightened supervision over equity markets and stricter punishment for investors who try to manipulate stock prices and are involved in insider trading.
Meanwhile, the Shanghai Stock Exchange said on its Website yesterday that it has completed a probe into 185 abnormal trading cases involving listed firms and issued 70 warning letters. It has also restricted trading of some stock accounts.
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