CHINA is mulling a fresh crackdown on insider trading to ensure the interests of investors and the healthy development of the capital market.

In a writ released yesterday, the State Council, China's Cabinet, said the current situation is severe. In particular, the launch of the stock-index futures has made insider trading even more difficult to trace.

The State Council ordered stricter rules to prevent the leakage of confidential information related to aspects such as fundraising, mergers and acquisitions and personnel changes ahead of official announcements. Listed companies are also told to shorten the time for decision making on major issues, and firms already being probed for insider trading will be suspended from fundraising and conducting M&As.

The China Securities Regulatory Commission will work with the Ministry of Public Security, the State-owned Assets Supervision and Administration Commission and other government departments to launch a joint campaign to crack down on insider trading, the State Council said.

A CSRC official told the Securities Times yesterday that it investigated 100 new cases in the first 10 months of this year. Of them, 74 were related to insider trading. It didn't give year-ago figures.

The CSRC said its own crackdown on insider trading has already led to a drop in abnormal trading since the second half of this year.