The GAPP could not be reached for comment Wednesday.

The arrest warrant for Qiu was issued by local police on an unspecified date.

"We are trying to find this person for further investigation now," a police officer in Suichang County, in Zhejiang, who refused to be named, told the Global Times.

Kan told the Global Times Wednesday that it stood behind its accusations against Qiu, claiming it could back them up, but the company refused to give additional details.

The chief financial officer of a Hangzhou firm who provided tips to Qiu about Kan's alleged insider trading has been arrested by police.

Chen Tao, a member of the Beijing Bar Association, told the Global Times Wednesday that the element constituting the crime of damage to a company's business reputation is that fabricated reports have resulted in significant losses for companies.

"However, in this case, the problem is how the police confirm the facts if the reports are fabricated. If they haven't identified the crime, they have no right to issue an arrest warrant," Chen said.

Yan Bing, a senior reporter with People's Daily, spoke about how some journalists are left vulnerable in situations like that.

"Since China doesn't have a press law now, journalists' rights and interests can't be properly protected," Yan told the Global Times Wednesday.

"Truth is better than anything. However, we can't deny that some reporters have no ethics," he added.