China Securities Regulatory Commission (CSRC) has found five Zhejiang-based companies guilty of illegal stock trading.
Zhejiang Yuandong Chemical Fiber Group and four other companies made huge profits through illegally using other's accounts with one of them making more than 10 million yuan, the CSRC said Friday without giving further details.
The commission said it had issued "fine notices" but did not reveal the amounts.
Legal representatives are forbidden from borrowing or lending trading accounts under current regulations. However, it has been widely practiced in China as many people believe it does no harm to others.
An official with the CSRC said that trading stocks with other people's accounts will provide a cover for unlawful actions such as insider trading and China is determined to battle such behavior.
On the same day, the CSRC also announced that it had delivered a fine notice to Wang Zijun, who was found guilty of manipulating the share price of China Textile Machinery by using more than 10 accounts.
The share price of the company doubled from April to June last year, which aroused the suspicions of the CSRC.
The official stressed that China would never spare any illegal practices and would keep the stock market on the track of "healthy and stable development".
(Xinhua News Agency September 29, 2007)
