The China Securities Regulatory Commission (CSRC) announced
Wednesday it has fined a former company manager 200,000 yuan
(US$26,130) in the latest case of insider trading.
Chen Jianliang, former vice general manager of the
Shenzhen-listed Xinjiang Tianshan Cement Co., Ltd., is also barred
from senior management position in any publicly traded companies
and securities brokerages for five years, said CSRC.
Chen bought and sold two million shares of Xinjiang Tianshan
before the public announcement of his company's stock transfer plan
on June 29, 2004, the securities regulator said.
An investigation by CSRC shows he traded the stock after he was
notified of the transfer plan in mid June.
Senior management staff of listed companies are barred from
stock trading with inside information, CSRC said, adding more harsh
efforts will be made to crack down on insider trading.
Earlier on May 16, Tang Jian, a fund manager at the China
International Fund Management Co., in which JPMorgan Asset
Management (UK) Limited holds a 49 percent stake, was fired for
insider trading.
The strong gains in the stock markets have prompted the
securities watchdog to be wary of trading irregularities amid
efforts to prevent stock bubbles.
The benchmark Shanghai Composite Index has added 56 percent this
year after surging 130 percent last year.
The CSRC unveiled new rules on Tuesday to impose transaction
restrictions on accounts of people who are being investigated for
stock market manipulation and insider trading.
The rules, which went on effective on Tuesday, state the
restricted accounts, including fund and securities accounts, will
be barred from buying, or selling shares and other products for
15days.
The ban can be extended by another 15 days if the investigation
is complicated.
(Xinhua News Agency May 24, 2007)