3 nabbed in insider trading case
Updated: 2007-06-14 08:52
Three people have been arrested by police in Zhejiang
Province for their alleged role in an insider trading case, considered the
biggest scandal to embroil a listed company this year.Prosecutors in the east China province approved the arrests of Luo Gaofeng, securities representative of Shanghai-listed Zhejiang Hangxiao Steel Structure Co, Wang Xiangdong and Chen Yuxing on Monday, Xinhua news agency reported yesterday, citing the China Securities Regulatory Commission.
Luo allegedly leaked inside information regarding the company. The other two men - Xinhua didn't provide more personal information - are subject to be slapped with charges involving insider trading.
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The stock market regulator fined Hangxiao 400,000 yuan (US$52,000) last month as the company failed to disclose huge contracts it won in a timely manner and misled investors, according to an exchange filing.
Hangxiao Chairman Shan Yinmu and President Zhou Jinfa were fined 200,000 yuan each, while three other senior executives - Board Secretary Pan Jinshui, General Manager Lu Yongjun, and Luo - each received a 100,000-yuan fine.
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