Related News
New rules weed out insider trading
By Winny Wang and Leo Zhang |
15:43 UTC+8 April 2, 2010
|
Online Edition
Online Edition
CHINA has stepped up a crackdown on insider trading with a new initiative to restrict equity trading by immediate relatives of staff at fund management firms, according to a regulatory document and industry sources.
Parents, spouses and children of those working at fund houses must seek their companies' approval before buying stocks, futures and other derivatives, according to a notice sent to fund firms last month and obtained by Shanghai Daily today.
The relatives must have their accounts opened at brokerage outlets designated by the fund companies, the notice said. Fund management companies should appoint executives to supervise their trading, according to the notice.
"Everyone in our company, including those doing administrative work, is required to offer information on trading by our immediate relatives," said an employee at a Shanghai-based fund firm. "We are drafting measures to implement the regulatory guideline."
All employees at fund companies on Chinese mainland are banned from directly buying or selling any equities under the securities law. However, previously there were no rules governing trading of other relatives.
Chinese securities watchdog has been 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 in last June.
The country's top securities regulator Shang Fulin has called for tightened supervision over equity markets and stricter punishment for investors who try to manipulate stock prices and are involved in insider trading.
In November, three fund managers based in the southern city of Shenzhen were suspected of taking advantage of insider information to make huge profits from the stock market.
"The campaign to battle irregularities will certainly be revved up as the market grows more sophisticated," said Zhang Xingzhe, a Bank of Communications analyst. "Protecting the interest of minority investors should top the regulator's agenda."
The China Securities Regulatory Commission will irregularly check fund firms on their supervision, the notice said.
Parents, spouses and children of those working at fund houses must seek their companies' approval before buying stocks, futures and other derivatives, according to a notice sent to fund firms last month and obtained by Shanghai Daily today.
The relatives must have their accounts opened at brokerage outlets designated by the fund companies, the notice said. Fund management companies should appoint executives to supervise their trading, according to the notice.
"Everyone in our company, including those doing administrative work, is required to offer information on trading by our immediate relatives," said an employee at a Shanghai-based fund firm. "We are drafting measures to implement the regulatory guideline."
All employees at fund companies on Chinese mainland are banned from directly buying or selling any equities under the securities law. However, previously there were no rules governing trading of other relatives.
Chinese securities watchdog has been 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 in last June.
The country's top securities regulator Shang Fulin has called for tightened supervision over equity markets and stricter punishment for investors who try to manipulate stock prices and are involved in insider trading.
In November, three fund managers based in the southern city of Shenzhen were suspected of taking advantage of insider information to make huge profits from the stock market.
"The campaign to battle irregularities will certainly be revved up as the market grows more sophisticated," said Zhang Xingzhe, a Bank of Communications analyst. "Protecting the interest of minority investors should top the regulator's agenda."
The China Securities Regulatory Commission will irregularly check fund firms on their supervision, the notice said.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
