BEIJING : China's securities regulator on Friday issued draft rules on improving regulation of short-swing trading transactions of specific investors, to limit insider trading.
Previous Chinese law requires company insiders such as board directors to return profits earned from short-term share trades to the company. The new rules would help clarify when those requirements apply. "With the development of the capital market and the increasing variety of securities and trading methods, the aforementioned principle-based provisions are difficult to apply to various complex scenarios, and the necessity of introducing a specialized rule is becoming more and more apparent," the regulator said.
Markets in China have been volatile over the past few weeks, roiled by a few months of rocky economic data, and unnerving investors.