Huang Guangyu's stiff punishment is a clear warning to all those indulging in insider trading - that taking undue advantage of regulatory loopholes will cost them dear.

Huang, once China's richest man, was sentenced to 14 years behind bars by a Beijing court on May 18. The self-made billionaire who built Gome into one of the largest electronics retailers in China was fined 600 million yuan ($88 million). The court also ordered the confiscation of his property worth 200 million yuan.

The punishment will hopefully deter others seeking to profit from unlawful deals in China's capital markets, which have been expanding rapidly over the years.