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Stock watchdog aims to curb insider trading

(Shanghai Daily)
Updated: 2007-05-01 09:41

China's securities regulator has pledged to crack down heavily on insider trading by limiting trading in stocks trade and stake transfers of listed firms suspected of conducting market manipulation.

The stock regulator will immediately suspend trading of public companies in cases where abnormal stock-price movements are detected, theChina Securities Regulatory Commissionsaid in a Website statement late Sunday.

The shares will resume trading only when firms clarify sufficiently market rumors affecting them or disclose price-sensitive information, the CSRC said in the statement.

"Under the current market scenario, manipulation and insider trading have replaced the falsification of profits by listed firms as the main illegal activity," the regulator said. "The CSRC will adopt more active and effective measures to deal with the crimes in a timely manner."

The CSRC will treat coldly applications formergers andacquisitions by listed companies which are suspected of insider trading if they can't prove they are not linked to any manipulation, according to the statement.