SHANGHAI, June 20 China's securities regulator
said on Friday it is investigating an analyst at the country's
top brokerage, CITIC Securities Co Ltd ,
for suspected release of insider information, the latest in its
efforts to tighten supervision of illegal trading activities.
State media reported Zhang Mingfang allegedly posted
information about Livzon Pharmaceutical Group Inc to
a private messaging group, revealing management's equity
incentive plans, which subsequently impacted the firm's share
The China Securities Regulatory Commission's spokesman Zhang
Xiaojun made the announcement at a news briefing on Friday. He
did not elaborate.
CITIC Securities, in an email sent to Reuters, said Zhang
has been suspended from her post during the investigation.
Attempts to reach Zhang for comment were unsuccessful.
Over the recent past, China has been stepping up its
crackdown against illegal trading activities and tightening
supervision against fund managers, brokerages, consultants and
executives of listed companies in a bid to build confidence in a
stock market where illegal trading activities have been rampant.
In 2011, former stock analyst Wang Jianzhong was sentenced
to seven years in prison and fined 125 million yuan ($20.13
million), on top of having illicit earnings of the same amount
confiscated, becoming China's first convicted stock market
($1 = 6.2090 Chinese yuan)
(Reporting by Shanghai Newsroom; Editing by Kazunori Takada and