Top official from China’s security regulator said the authority will hold zero tolerance toward illegal behaviors in securities trading, including fraudulent issuing, insider trading, fabricating information and market manipulation.
Yi Huiman, chairman of the China Securities Regulatory Commission (CSRC) introduced the relevant policy suggestions Tuesday night and said that the authority will tighten supervision of issuers and stakeholders, as well as brokers in the security market, and will hold anyone who participated in illegal conduct accountable.
Yi also said that the authority will step up law enforcement in the private equity market, and will increase the punishment for private equity managers and other participants who are found to be involved in criminal activities such as embezzlement.
In an interview with Xinhua News Agency, Yi said that the policy suggestions were introduced because of the current inadequate market framework in securities, which has lowered the cost of criminal conducts.
“Financial fraud and insider trading, market manipulation and other illegal acts of listed companies are on the rise,” Yi said, “such as the scandals of Kangdexin, Kangmei Pharmaceuticals.”
“With the gradual and comprehensive implementation of registration system reform, the market has relaxed access, but it also puts forward higher requirements for strengthening supervision and enforcement,” Yi said.