The punishment for 3 fund managers who conducted illegal trading was announced Monday by the Chinese Securities Regulation Commission.
Han Gang, one of the managers, is the first person in China to be charged criminally for illegal trading. His fate will be determined by the police department.
The other two fund managers, Tu Qiang and Liu Hai, were charged with using their relatives' accounts in illegal trading. Liu will be fined 500 thousand yuan, and Tu will be fined 2 million yuan by the Securities Commission. They are both banned from working in the fund management industry. Tu is forbidden to invest in the stock market for life, while Liu is banned for 3 years.
Huang Xiangbin, Strategist of Cinda Securities said "The equities market used to have a lot of illegal behavior, like insider trading for profit. Investors cannot establish the right investment ideas."