(Adopted by the thirteenth Meeting of the Standing Committee of the Ninth National People’s Congress on December 25, 1999, promulgated
by Order No.27 of the President of the People’s Republic of China on December 25,1999,and effective as of the date of promulgation.)
In order to punish the crimes disrupting the order of the socialist market economy, ensure the smooth building of socialist modernization,
the criminal law is hereby amended as follows:
1. Subsequent to Article 162, one article is supplemented as Article 162: “Whoever conceals or deliberately destroys financial
vouchers, financial account books or financial statements, if the circumstances are serious, shall be sentenced to imprisonment
of less than five
years or criminal detention, and/or be imposed a fine no less than 20,000 yuan but no more than 200,000 yuan.
Where a unit commits the crime as mentioned in the preceding paragraph, it shall be imposed a fine, and the persons who are directly
in charge or persons who are directly responsible for the offence shall be punished according to the preceding paragraph.”
2. Article 168 of the Criminal Law is amended as: “Where an employee of a state-run company or enterprise is seriously irresponsible
or abuses the authorities, causing its bankruptcy or serious losses to the state-owned company or enterprise, and causing heavy
losses to the interests of the state, the employee shall be sentenced to imprisonment of no more than three years or criminal
detention; where the losses to the interests of the state is extremely heavy, the employee shall be sentenced to imprisonment
of no less than three years but no more than seven years.
Where an employee of a state-owned institution commits the crime as mentioned in the preceding paragraph, causing heavy
losses to the interests of the state, he shall be punished according to the preceding paragraph.
Where an employee of a state-owned company, enterprise or institution commits the crimes as mentioned in the preceding two paragraphs
out of irregularities for favoritism, he shall be given harsher punishment according to the first paragraph of this article.”
3. Article 174 of the Criminal Law is amended as: “Whoever stablishes, without the approval of the competent authorities of
the state, a commercial bank, securities exchange, futures exchange, futures brokering company, insurance company or other
financial institutions, he shall be sentenced to imprisonment of no more than three years or criminal detention, and/or
shall be imposed a fine of no less than 20,000 yuan but no more than 200,000 yuan; if the circumstances are serious, he
shall be sentenced to imprisonment of no less than three years but no more than ten years, and/or shall be imposed a fine of
no less than 50,000 yuan but no more than 500,000 yuan.
Whoever forges, alters or transfers the permit for operation or other documents of approval of a commercial bank, securities exchange,futures
exchange, futures brokering company, insurance company or other financial institutions, he shall be punished according to
the preceding paragraph.
Where a unit commits the crimes as mentioned in the preceding two paragraphs, it shall be imposed a fine, and the persons who
are directly in charge or who are directly responsible for the offence shall be punished according to the first paragraph of
this article.
4. Article 180 of the Criminal Law is amended as: “Any insider who possesses inside information about any stock or futures
exchange transactions, or anyone who illegally obtains such information, prior to the publication of the information that concerns
stock or futures exchange transactions that has a vital bearing on the stock price, buys or sells the very stock or divulges
the very information, shall, if the circumstances are serious, be sentenced to fixed-term imprisonment of no more than five years
or criminal detention, and/or be imposed a fine of no less than one double but no more than five times of the illegal gains;
if the circumstances are extremely serious, he shall be sentenced to fixed-term imprisonment of no less than five years but no more
than 10 years and shall also be imposed a fine of no less than one double but no more than five times of the illegal gains.
Where a unit commits the crime as mentioned in the preceding paragraph, it shall be imposed a fine, and the persons who are directly
in charge or who are directly responsible for the offence shall be sentenced to fix-term imprisonment of no more than five years
or criminal detention.
The range of inside information and the insiders shall be determined in accordance with the laws and administrative regulations.”
5. Article 181 of the Criminal Law is amended as: “Whoever fabricates and spreads false information to adversely affect stock
or futures exchange transactions, disrupt the stock or futures exchange market,
shall, if the consequences are serious, be sentenced to fixed-term imprisonment of no more than five years or criminal detention,
and/or be imposed a fine of no less than 10,000 yuan but no more than 100,000 yuan.
Any employee of a stock exchange, futures exchange, securities company or futures brokering company or any member of a securities
association or futures association or department for the administration of
securities or futures who deliberately provides false information or forges, alters or destroys transaction records in order
to cajole investors into buying or selling securities or futures contracts and thus serious consequences have been resulted
in, shall be sentenced to
fixed-term imprisonment of no more than five years or criminal detention, and/or shall be imposed a fine of no less than
10,000 yuan but no more than 100,000 yuan; if the circumstances are extremely serious, he shall be sentenced to fixed-term
imprisonment of no less than five years but no more than 10 years, and/or shall be imposed a fine of no less than 20,000 yuan
but no more than 200,000 yuan.
Where a unit commits the crime as mentioned in the preceding two paragraphs, it shall be imposed a fine, and the persons who
are directly in charge or who are directly responsible for the crime shall be sentenced to fix-term imprisonment of no
more than five years or criminal detention.”
6. Article 182 of the Criminal Law is amended as: “Whoever commits any of the following acts by rigging stock or futures prices
in order to obtain illegitimate profits or transfer risks shall, if the circumstances are serious, be sentenced to
fixed-term imprisonment of no more than five years or criminal detention, and/or shall be imposed a fine of no less than one
double but no more than five times of the illegal gains:
(1) rigging stock or futures prices by working alone or by conspiracy in concluding transactions jointly or continuously through
a mustering superiority in the holding of funds, shares or futures storage or in the use of information;
(2) affecting stock or futures prices or the volume of stock or futures transactions by colluding with another and carrying
out stock or futures exchange transactions between themselves at a time, price or in a manner previously agreed upon, or buying
or selling between themselves the securities they do not hold;
(3) affecting the prices of stock or futures or the volume of stock or futures transactions by taking himself as the counterpart
of transaction and trading in stocks with himself without transferring ownership of the securities or trading in the futures contracts;
or
(4) rigging the prices of stock or futures by any other means.
Where a unit commits any of the crimes as mentioned in the preceding paragraph, it shall be imposed a fine, and the persons who
are directly in charge and the persons who are directly responsible for the crime shall be sentenced to fixed-term imprisonment
of no more than five years or criminal detention.”
7. Article 185 of the Criminal Law is amended as: “Any employee of a commercial bank, securities exchange, futures exchange,
securities company, futures brokering company, insurance company or of any other banking institution who, by taking advantage
of his position, misappropriates money belonging to the unit or any client shall be convicted and punished according to
Article 272 of this Law.
If any employee of a State-owned commercial bank, stock exchange, futures exchange, securities company, futures brokering
company, insurance company or other banking institution or any person who is assigned by a state-owned commercial bank,
stock exchange, futures
exchange, securities company, futures brokering company, insurance company or other banking institution to an institution that
is not owned by the state to engage in public service commits the act as mentioned in the preceding paragraph,he shall be convicted
and punished according to the provisions in Article 384 of this Law.
8. A clause is supplemented to Article 225 as the third lause: “without permission from the competent authorities of the state, is
engaged in the business of securities, futures or insurance.” The third clause of the original Law shall be changed accordingly
to be the fourth clause.
9.These amendments shall come into effect as of the date of promulgation.
(The English translations are for reference only.)
