China Boosting Efforts to Battle Illegal Stock Trading

China's securities regulator and law enforcement ministries said they will increase efforts to handle cases involving illicit stock transactions in a market where the benchmark index almost tripled last year.

Companies or shareholders commit a crime if they disclose false information to raise funds or transfer stocks to the public investors, according to a circular posted on the Web site of China Securities Regulatory Commission, addressing an increase of such problems.

China is improving rules and laws to meet international standards on information disclose and to prevent managers making gains through illegal transactions. The improvements are intended to boost investor confidence ahead of an expected increase in mergers and acquisitions.

The courts will speed up investigations of possible illegal stock issuance and frauds in attracting public deposits, the statement said.

Chinese courts received 366 cases of alleged securities frauds last year, it said.