Oct. 27 (Bloomberg) -- A former Chinese mayor was sentenced to 11 years in jail after being convicted of insider trading, disclosing private information and taking bribes, the official Xinhua News Agency reported.
Li Qihong, former mayor of the southern city of Zhongshan, was also fined 20 million yuan ($3.1 million) and had 100,000 yuan of assets confiscated, Xinhua reported.
The case is part of a government push to clamp down on insider trading by Chinese officials who use their knowledge of business dealings by companies in their regions for financial gain. A central bank researcher was sentenced to six years in prison and a former secretary at the statistics bureau sentenced to five years this week for leaking classified economic data.
“You can imagine how many officials took advantage of it,” said Zhang Min’an, a law professor in Sun Yat-Sen University in Guangzhou, in a phone interview. “What has been exposed must be the tip of an iceberg.”
Also today, China asked listed companies to maintain a list of people who have insider information as part of rules to prevent insider trading, the China Securities Regulatory Commission said in a statement on its website.
The list may include shareholders, securities companies, law firms and other intermediaries, acquiring companies and counterparties of major transactions, the statement said.
--Regina Tan, Wenxin Fan, with assistance from Chua Baizhen in Beijing. Editor: Nicholas Wadhams, John Liu
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