Illegitimate trading by officials of listed firms

Irregularities such as listed firms’ officials and relatives’ trading on corporate shares with improper timing showed up right after disclosure of half-year report.

The Shenzhen Stock Exchange ruled that seniors of listed firms are not allowed to trade proprietary stock within 30 days before report release, delayed period for report due to special reasons, 10 days before performance predicts and the period that important incidents affecting company’s operation.

However, many officials broke the rules. YANG Ju, wife of GAO Yun Bin, director of Nanjing Yunhai Special Metals Co., Ltd, purchased 500 shares of the company with CNY16.3 per share on July 18, 2008, 9 days before the date of half-year report’s disclosure. Experts expressed that officials of listed firms should regulated themselves to stick to the rules. (Shanghai Securities News)