Economy

Prosecution standards clarified for insider trading

(Xinhua)
Updated: 2010-05-19 09:58

China's Supreme People's Procuratorate and the Ministry of Public Security on Tuesday issued new rules to clarify prosecution standards for insider trading and the leaking of inside information.

Under the new rules, effective Tuesday, insiders who trade securities will be prosecuted if the cumulative trading volume exceeds 500,000 yuan ($73,000).

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For those trading futures, they will face government suits if their  appropriation of margin in insider trading exceeds 300,000 yuan, the new rules stipulate.

The government will also bring suits against those whose benefits or loss aversion from insider trading tops 150,000 yuan.

The government will also prosecute those insiders who trade on inside information and leak information more than once.

The new rules also clarify prosecution standards for the publication of false financial reports and the withholding of important company information.

Huang Guangyu, former chairman of Chinese electronics retail giant Gome, was sentenced to 14 years in prison Tuesday after being convicted of insider trading, corporate bribery and illegal business dealings.