PriyaPatelTLDR:
A senior prosecutor with the Supreme People’s Procuratorate in China has announced plans to crack down on financial crimes, including insider trading and market manipulation. The prosecutor, Zhang Xiaojin, stated that efforts would be made to provide strong rule-of-law guarantees to serve and safeguard high-quality financial development. The targets of the crackdown will include illegal fundraising, loan fraud, money laundering, proscribed foreign exchange trading, and crimes related to the use of virtual currencies to transfer assets abroad. Zhang also emphasized the need to protect the order of the capital market and the interests of listed companies. The crackdown is expected to support the construction of a standardised, transparent, open, dynamic, and resilient capital market in China.
Financial crimes in the field of securities and futures were described by Zhang as seriously undermining the basis for the operation of the capital market, infringing upon the legitimate rights and interests of investors, and endangering economic and financial security. Last year, the Communist Party became China’s top financial regulator, with the establishment of the Central Financial Commission, reflecting Beijing’s emphasis on strengthening supervision of the sector. President Xi Jinping has also stressed the importance of preventing systemic financial risks and further moves against corruption.
The Supreme People’s Procuratorate issued a guideline in December outlining its duties in relation to tackling and preventing financial crimes. China is currently grappling with an ailing stock market, with Premier Li Qiang convening a cabinet meeting last month to discuss ways of reviving sentiment and attracting long-term capital. Vice-Premier He Lifeng has called for more vigorous and effective measures to stabilize the market and promote confidence.
