Shanghai bourse punishes 45 executives over misconduct

THE Shanghai Stock Exchange has taken 45 senior executives of listed companies to task in the first 10 months of this year for their misconduct in stock trading.

Their misconduct included trading stocks in a "window period" in which major shareholders are barred from increasing stakes in their companies ahead of the release of financial results, the bourse said in a statement on its Website yesterday.

Some of the executives were also punished for short-term trading or failing to publish information on time, the statement said.

As part of the administrative punishment, the bourse will enhance supervision on 19 of the executives and will issue notices of criticism on the other 26, the statement said.

The Securities Law regulates that senior executives of companies are banned from selling or buying stakes in their companies within six months after a purchase or a sale. Otherwise any profit they make will belong to their companies.

The bourse warned it will continue to crack down on illegalities by senior executives and impose a harsher penalty on violators, it said.

Shang Fulin, chairman of the China Securities Regulatory Commission, last month called for tightened supervision over equity markets and stricter punishment for investors who try to manipulate stock prices and are involved in insider trading.

In Shenzhen, three fund managers were suspected of insider trading after the Shenzhen branch of the CSRC started a probe.

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