Supreme People's Procuratorate and Ministry of Public Security, Supplementary Provisions on the Standards for Pursuing Cases of Economic Crime

最高人民检察院、公安部关于经济犯罪案件追诉标准的补充规定

July 09, 2008 | BY

clpstaff &clp articles &

Clearer standards to deal with securities-related crimes.

Clp Reference: 1430/08.03.05 Promulgated: 2008-03-05

Promulgated: March 5 2008

Applicability: Where there is inconsistency between the 2001 Supreme People's Procuratorate and Ministry of Public Security, Provisions on Standards for Pursuing Cases of Economic Crime and these Supplementary Provisions, these Supplementary Provisions shall prevail.

Main Contents: The Provisions provide standards for pursuing the following cases stipulated in the PRC Criminal Law (the Criminal Law): cases of disclosure in breach of provisions and failure to disclose material information, cases of prejudicing the rights of listed companies in bad faith, cases of insider trading and divulging insider information, cases of manipulating securities and futures markets, and cases of using fiduciary property in bad faith.

For example, in cases of disclosure in breach of provisions and failure to disclose material information (stipulated in Article 161 of the Criminal Law), where a company or enterprise bearing information disclosure obligations according to law provides to the shareholders and the public financial accounting reports that are false or that conceal important facts, or fails to disclose other material information that should be disclosed according to law, and it is suspected of causing the shareholders, creditors or other persons direct economic losses of at least Rmb 500,000 in aggregate, such case shall be pursued (Article 1).

Related Legislation: PRC Criminal Law (Revised)[excerpts], Dec 25 1999, CLP 1997 No.5 p.39; and PRC Criminal Procedure Law (Revised), Mar 17 1996, CLP 1996 No.3 p.5

clp reference:1430/08.03.05promulgated:2008-03-05

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