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What Is Crime of Inducing Investors to Trade Securities and Futures Contracts? How to Punish It?
2010-11-24

 

The crime of inducing investors to trade securities and futures contracts refers to the act by practitioners of stock exchanges, futures exchanges, securities companies and futures companies and staff of securities associations, futures associations or securities and futures regulatory authorities of inducing investors to trade securities and futures contracts by intentionally providing false information or falsifying, altering and destroying trading records, which causes serious results.

 

It is stipulated in Article 181 of the “Criminal Law” that “Persons committing the crime will be sentenced to imprisonment of less than five years or detention and a fine of more than RMB10,000 and less than RMB0.1 million concurrently or separately. In especially serious cases, they will be sentenced to imprisonment of more than five years and less than ten years and a fine of more than RMB20,000 and less than RMB0.2 million.”

 

For organizations committing the crime, a fine will be imposed on them, and their persons in direct charge and other directly responsible personnel will be sentenced to imprisonment of less than five years or detention.