THE former investment director of Shanghai-based Everbright-Prameric Fund Management Co was yesterday sentenced to three years in jail with three years' reprieve for insider trading. Xu Chunmao, who the Jing'an District court heard had been in the mutual fund business for more than seven years, was also fined 2.1 million yuan (US$329,437). Xu was the first Shanghai-based asset manager to be sentenced for insider trading, the court said. Xu made more than 2.09 million yuan in illegal profits and that has been confiscated. Xu, 37, abused his position at Everbright-Prameric from July 2006 to April 2010 by leaking investment tips to three of his former university classmates, the court said. The three would buy shares of certain companies on Xu's advice before or at the same time his firm bought into the companies, the court said. The group traded a total of 68 stocks in this way with a combined investment of more than 95 million yuan. China has been stepping up supervision o…
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