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Corrupt Party Officials’ Fraudulent Practices in the Stock Market

Recently, the media in Mainland China exposed how officials in the Chinese Communist Party have gained huge profits using such illegal stock investment activities as embezzlement, accepting bribes, borrowing money from businessmen, and releasing unpublicized internal information to relatives or family members. Some examples follow.

Tao Liming, ex-president of the Postal Savings Bank of China, embezzled government bonds worth 340 million Chinese yuan (US $53.26 million) in speculating in the stock market for personal profit.

Yao Gang, vice-chairman of the China Securities Regulatory Commission, was under investigation last week. His former secretary borrowed 10 million Chinese yuan (US$1.56 million) from a businessman to speculate in the stock market.

Xiao Peng, former China Southern Power Grid deputy general manager, gave insider information to a relative, helping his stock investment grow by 50 percent annually for eight consecutive years.

Sources: Sohu, November 18, 2015 & China News, November 18, 2015