SHANGHAI - China's securities regulator is tightening its rules against
insider trading by executives of state-owned listed firms, state media has
The tougher approach comes after some senior executives sold shares in their
companies in larger numbers or at a faster pace than allowed by the rules, the
China Securities Journal said, citing an unnamed securities oversight official.
"The agency has looked into the violations and taken regulatory action
accordingly," said the official from the China Securities Regulatory Commission
(CSRC), without elaborating.
"The board of directors of listed firms should correct any such wrongdoing
immediately," the official warned.
The oversight body has drafted new rules to better regulate the trading of
equities in listed firms by senior company executives, the newspaper said.
It did not provide details about the new regulations which will be released
soon but added that a technology platform and operating system that will provide
oversight has been completed.
Most of China's listed firms were once state-owned and in many the state
still retains a controlling stake.
Current regulations stipulate that top company officials must not transfer
more than a quarter of their total shareholdings in their firm in each year of
Executives are also subject to a one-year lock-up period after the listing of
the firm's shares and cannot transfer stock in the company within half a year of
stepping down from their post.
If officers who own five percent of a listed firm carry out a transaction
within six months after buying or selling, the gains they make will belong to