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Stock watchdog aims to curb insider trading

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

Public companies and controlling shareholders are not allowed to replace exchange filings with other forms of information disclosures such as press conferences and media releases, the statement said.

Listed firms, their executives and shareholders mustn't offer personal opinions to the public when the companies are under regulatory probe for possible rule violation, according to the statement.

Chinese mainland shares have more than tripled in value since the beginning of 2006 as capital continuously flowed from citizens' savings into the nation's two stock markets.

The CSRC this month launched probes into several listed firms, whose shares had soared before the firms unveiled price-sensitive information. The regulator said it would severely punish persons involved in suspected insider trading.

TheShanghai Stock Exchangeinvestigated 97 irregular share transactions, including 18 by mutual funds, in the first quarter of the year, equivalent to 35 percent of last year's total, as volatility in share prices rose.