China's Supreme Law Announces 7 Typical Cases of Punishing Securities and Futures Crimes According to Law
China News Service, Beijing, September 24 (Reporter Zhang Su) Deceive trading manipulation, new manipulation of the futures market, "rat warehouse"... On the 24th, the Supreme People's Court of China announced 7 securities and futures trials concluded by the People's Court since 2017 Typical crime cases show the attitude and position of "zero tolerance" towards securities and futures crimes.
The 7 typical cases are: 1 case of fraudulent issuance of stocks and illegal disclosure of important information, 2 cases of manipulation of securities and futures markets, 3 cases of insider trading and disclosure of inside information, and 1 case of trading using undisclosed information.
In the "Dandong Xintai Electric Co., Ltd., Wen Deyi and other fraudulent issuance of stocks, illegal disclosure of important information case", the listed company received criminal penalties for continuous financial fraud before and after applying for listing and was forced to delist according to law.
The Supreme Court stated that China is advancing a securities issuance registration system with information disclosure at its core.
The correct handling of this case reflects the "zero tolerance" attitude and determination to illegal and criminal acts in the capital market, and has a warning effect on the current severe punishment of financial fraud and fraud in the capital market.
The "Gu Li'an Insider Trading Case" is a typical case of insider trading by persons who illegally obtained inside information on securities trading.
Defendant Gu Li'an, as a person who illegally obtained inside information on securities transactions, was sentenced to five years in prison and fined RMB 1.3 million.
The Supreme Court warned the majority of investors to learn from the case and never inquire inside information or engage in insider trading.
"Qi Lei and Qiao Weiping's use of undisclosed information transactions" is a typical case of securities company staff using undisclosed information transactions (commonly known as "rat warehouse").
The Supreme Law pointed out that this kind of behavior seriously undermines the principles of open, fair and just securities and futures markets, and has a negative impact on asset management and the healthy development of funds, securities, and futures markets. The social harm is becoming increasingly prominent and should be punished in accordance with the law.
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