China toughens stance on financial crime
13 May 2008
Stock market investors who take advantage of insider information and make profits of more than RMB150,000 (US$21,400) can now be sued in court, according to new securities fraud regulations issued on Monday. The rules, released by the Supreme People's Procuratorate and the Ministry of Public Security, also allow prosecutors to take action against firms that distort corporate profits by more than 30%. Meanwhile, asset management firms will face tougher penalties if they breach agreements with clients and embezzle funds exceeding RMB300,000 (US$42,800). The new rules come after the securities regulator said earlier this year that it would work with the judiciary to clamp down on unlawful behavior, the South China Morning Post reported. Police investigated 366 cases of securities fraud last year, detaining 48 people in the process.
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