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SHANGHAI - The Chinese Communist Party's anti-graft body has warned Party officials not to use insider information to profit from stock trading, state media reported today.
At a meeting held in Beijing this week, the Central Commission for Discipline Inspection said it would be one of its major tasks this year to prevent Party officials from engaging in insider trading in the country's stock market.
Although insider trading is illegal, it is believed to be rampant in China's stock market since shares typically rise or fall sharply ahead of any major price-sensitive policy or company announcements.
"Party officials and cadres must not use insider information to trade stocks by taking advantage of their official positions," the official Shanghai Securities News said in a front-page report, citing the Xinhua News Agency.
"Leaders of state-owned enterprises must discipline themselves strictly. They must not trade their companies' stocks when their firms are in the process of bringing in strategic investors or restructuring assets," it said.
Despite the warning, the commission did not give any details about stepped-up enforcement efforts. The China Securities Regulatory Commission is currently responsible for monitoring trading practices and enforcing the law.
- REUTERS
