The China Securities Regulatory Commission (CSRC)
announced Wednesday it has fined a former company manager 200,000 yuan (26,130
U.S. dollars) 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
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 15 days.
The ban can be extended by another 15 days if the investigation is