China Cracks Down on Financial Crimes as Procurators Charge Over 340 Industry Insiders
Strengthening Oversight of the Financial Sector
In a bid to prevent and defuse economic and financial risks, China’s top prosecutors have launched a renewed crackdown on financial crimes, resulting in over 340 industry insiders being charged with corruption or dereliction of duty last year. This marks a significant increase from the previous year as authorities seek to maintain an upturn and long-term growth of the country’s economy.
Procurators Target Corruption in the Financial Sector
According to data released by the Supreme People’s Procuratorate (SPP), procurators worked tirelessly to target corruption in the financial sector, including crimes such as:
- Insider trading
- Dereliction of duty
- Abuse of power committed by staff of financial oversight departments
- Handling of 12 major financial fraud cases and 16 major cases involving private equity funds
Significant Results and Pledges for Future Action
The crackdown on financial crimes has yielded significant results, with over 300 individuals charged for securities-related crimes, a year-on-year increase of 9.2 percent. The SPP’s efforts have been hailed as an important guarantee for development and the best business environment. Authorities have vowed to maintain financial security, with over 27,000 individuals charged with financial fraud and financial management irregularities.
President Xi Jinping’s Call for Judicial and Law Enforcement Authorities
The renewed focus on financial crime prosecution is part of President Xi Jinping’s call for judicial and law enforcement authorities to prevent and defuse major security risks. This pledge follows a national conference held in January, where Xi emphasized the need for strengthened oversight of the financial sector.
Commitment to Preventing and Resolving Financial Risks
As China prepares to wrap up its annual parliamentary meetings, known as the “two sessions,” prosecutors have pledged to extend their crackdown on offences such as insider trading and market manipulation. The SPP has also released guidelines outlining what public prosecutors must do to tackle financial crimes, underscoring the government’s commitment to preventing and resolving financial risks.
Boosting Economic Stability and Promoting High-Quality Development
China’s renewed focus on financial crime prosecution is seen as a crucial step in maintaining economic stability and promoting high-quality development in the financial sector. As the country looks to boost its economy in 2024, Beijing will continue to prioritize strengthened oversight and enforcement of financial regulations to ensure the long-term growth and stability of its financial markets.