China has jailed two of its own government officials for six years and five years, respectively, for leaking confidential economic data to traders before the information was publicly available, Bloomberg reported.From Bloomberg:
Wu Chaoming, a researcher with the People’s Bank of China, was sentenced to six years in prison for wilfully revealing secret information to 15 people in the securities industry, Li Zhongcheng, a state prosecutor said in Beijing today. Sun Zhen, a former secretary in the country’s statistics bureau, received five years on similar charges.
Here’s how they did it.
The bank aides apparently delivered the classified economic data in the form of lectures to the securities firms. What’s more is they were paid handsomely for speaking, the report said. They also used the information themselves to trade stocks profitably.
One example of data that got out:
The consumer-price index figure was accurately circulated in the market or in the press before the official release for at least five of the six months through April this year.
Here’s how the Chinese figured out something sketchy was going on.
Earlier this year, the Chinese government was embarrassed when extremely accurate economic figures involving the consumer-price index, interest rates and inflation were being passed around the market and the media before the official release dates.
Clearly, someone was leaking the highly classified information.
So to maintain creditability, the government is cracking down on those responsible.
The report said China has indicted four other people involved, but their names have not yet been released.