China’s securities regulator released details of its efforts to fight trading misconduct, including the arrest of a Southwest Securities Co (西南證券) executive, as part of its “zero tolerance” campaign against wrongdoing.
Ji Minbo (季敏波), a vice president at Southwest Securities, was arrested on allegations he gained 20 million yuan (US$3.2 million) by using undisclosed information to trade more than 40 stocks from 2009 to this year, the China Securities Regulatory Commission said in a statement on its Web site on Friday.
The case was one of five disclosed by the regulator, which released details about six other fraud cases two weeks earlier.
China has tightened oversight of its two-decade-old stock market, including by prosecuting government officials, executives and fund managers.
The securities regulator’s newly appointed chairman, Guo Shuqing (郭樹清), pledged “zero tolerance” this month for insider trading and securities fraud in the world’s third-biggest equities market.
Southwest Securities has yet to find any loopholes after “combing through” its internal control and proprietary-trading procedures, Xu Mingdi (徐鳴鏑), the Chongqing-based company’s board secretary, said in a telephone interview yesterday.
The case relates to Ji’s “personal problems,” said Xu, who is based in Beijing.
The other investigations disclosed by the securities regulator on Friday included a case that involved the leaking of information about an acquisition and another in which analyst recommendations were used to manipulate shares.