Investment firm officials fined for insider trading
The China Securities Regulatory Commission has fined three officials of investment companies for insider trading, in the hope of deterring market manipulation.
The CSRC announced Thursday that Deng Jun and Qu Li, two senior officials with China Cifco Investment, and Zhai Xiang, a deputy director at the general manager's office of Shenzhen Tellus Holding, were found to have engaged in insider trading last year.
The three officials bought shares of their own companies before positive news announcements were published.
Deng was fined 300,000 yuan (HK$339,300), and Qu was fined 150,000 yuan. Zhai, who lost money in the insider trading transaction, was fined 30,000 yuan.
The CSRC said it would take tougher measures against insider trading to encourage the development of mainland capital markets.
'Insider trading is not rare on the mainland,' said Haitong Securities analyst Zhang Qi.
'But it is an uphill task for the regulator to dig out more unethical traders, because China lacks an efficient supervision system.'
Meanwhile, investors are still waiting for more details about Liu Fang, dubbed the mainland's 'most successful retail investor' for reportedly gaining nearly 100 million yuan in stock trading last year.
He has been widely accused in mainland newspapers and on financial websites of being a front for a clandestine group after Gome Electrical Appliances chairman Wong Kwong-yu was investigated by police for insider trading.
Mr Liu could not be reached for comment.
