New securities rules could expose trading scandals
14 May 2008
New rules aimed at cleaning up the stock market are being seen as opening the door to uncovering commercial scandals, the South China Morning Post reported. The rules, announced Monday by the top prosecution office of the Ministry of Public Safety in consultation with China's securities regulator, the CSRC, expand legal actions allowed to be taken by investors and creditors over financial crimes. The newspaper cited a source close to the CSRC as saying the new rules would likely result in more lawsuits brought against "unethical company bosses and fund managers." The regulator has been criticized for not doing more to protect retail investors in the wake of the punishments of two fund managers who engaged in insider trading.
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