China's national legislature on December 25 passed an amendment of the Criminal Law, with focus placed on cracking down on securities- and futures-related crimes.

According to the amendment, anyone who obtains inside information about securities or futures dealings is prohibited to leak the information or engage in related deals before it is officially published. Otherwise the person shall face imprisonment up to ten years and a fine two to five fold of the illegal income thus gained.

Those who spread false information to "seriously disrupt securities or futures markets" will also face fixed-term imprisonment and fines, says the amendment adopted at the 13th session of the 9th National People's Congress Standing Committee, which closed here today.

The law forbids employees of securities and futures businesses from releasing false information, making fake transaction records or manipulating the market price for personal gains. Violators will risk being jailed or fined.

Unauthorized establishment of commercial banks, stock and futures exchanges and brokerages, insurance companies, and other types of financial institutions has been outlawed.

The law also defines punishment for accountants' misbehaviors, such as hiding or intentionally destroying vouchers, accounting books and statements.

China's stock and futures markets have experienced rapid expansion in recent years. "Despite the tightening up of regulations and clearing up of anomalies, there still exist problems," said Yang Jingyu, director of the Legislative Affairs Office of the State Council.

"These and other negative activities have damaged the interests of investors and severely disrupted the financial and economic order," Yang said, warning that the markets "can't operate healthily unless these crimes are punished."