Journalist, official held for stock market violations in China

(From China Daily)

Chinese authorities have held several people, including a journalist, an official of China’s securities watchdog and four senior executives of China’s major securities dealer for stock market violations.

Wang Xiaolu, a journalist with Caijing magazine, "confessed" that his false information" had caused panic and disorder at the stock market

Wang Xiaolu, a journalist with Caijing magazine, “confessed” that his false information” had caused panic and disorder at the stock market

Wang Xiaolu, journalist of Caijing magazine, has been placed under “criminal compulsory measures” for suspected violations of colluding with others and fabricating and spreading fake information on securities and futures market, Xinhua learned Sunday.

Wang confessed that he wrote fake report on Chinese stock market based on hearsay and his own subjective guesses without conducting due verifications.

He admitted that the false information has “caused panics and disorder at stock market, seriously undermined the market confidence, and inflicted huge losses on the country and investors.”

Also put under “criminal compulsory measures” was Liu Shufan, an official with China Securities Regulatory Commission. He is held over suspicions of insider dealings, taking bribes and forging official seals.

According to Liu’s confession during the investigation, he has taken advantage of his position to secure an approval from the securities authorities for a public company and help the growth of the company’s shares.

In return, the head of the company offered bribes worth several million yuan to him.

Also, Liu has used insider information from the above-mentioned company and another company and obtained millions of yuan of illegal gains, according to his confession.

Liu confessed that he has forged official seals to fake a court ruling on divorce and taxation certificates for his mistress.

Xinhua also learned from authorities that Xu Gang, Liu Wei, Fang Qingli and Chen Rongjie,senior executives of the Citic Securities, China’s leading securities dealer, have been put under “criminal compulsory measures” for suspected insider trading. They have also confessed to their violations.

“Compulsory measures” may include arrest, detention, issuing a warrant to compel a suspect to appear, bail pending trial, or residential surveillance.

197 punished for spreading rumors

A total of 197 people have been punished in a special campaign by Chinese police targeting online rumors about China’s stock market, the recent fatal explosions in Tianjin or other key events.

A statement issued by the Ministry of Public Security said 165 online accounts were closed for relevant violations.

The statement said people punished in the campaign expressed repentance over their misconduct that have “caused panic, misled the public and resulted in disorders in stock market or society.”

According to the statement, these people are punished for circulating rumors such as “man jumped to death in Beijing due to stock market slump,” “at least 1,300 people were killed in Tianjin blasts” and some seditious rumors about China’s upcoming commemorations of the 70th anniversary of the end of World War II.

The ministry statement pledged strict measures to enforce rule of law and punish violations on the Internet and called on Internet operators to strengthen management to ensure cyberspace order.



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