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The majority of shares in china before 2005 were non-tradeable shares that were not sold on the stock exchange publicly but privately. To make shares more accessible, the china securities regulation commission (CSRC) required the companies to convert the non-tradeable shares into trade-able shares. There was a deadline for companies to convert there shares and the deadline was short, due to this there was a massive amount of exchanges and in the midst of these exchanges many people committed insider trading knowing that the selling of these shares would affect prices. Chinese people did not fear insider trading as much as one may in the United States because there is no possibility of imprisonment. Punishment may include monetary fees or temporary relieving from a position in the company. The Chinese do not view insider trading as a crime worth prison time because generally the person has a clean record and a path of success with references to deter them from being viewed as a criminal.

International Standard Book Number-13: 978-1-4200-7403-1 (eBook - PDF)