Amendment 1 to the Criminal Law of the People's Republic of China - 1999

The Amendment I to the Criminal Law of the People's Republic of China, which was adopted by the thirteenth session of the Standing Committee of the Ninth People's Congress on December 25, 1999, is hereby promulgated and shall come into effect as of the date of promulgation.

Jiang Zemin

President of the People's Republic of China

December 25, 1999

Amendment to the Criminal Law of the People's Republic of China

(Adopted by the thirteenth session of the Standing Committee of the Ninth People's Congress on December 25, 1999.)

In order to punish the crimes disrupting the order of the socialist market economy, ensure the smooth building of socialist modernization, the criminal law is amended as follows:

1. Subsequent to Article 162, one article is supplemented as Article 162. 1: "Whoever conceals or deliberately destroys financial vouchers, financial account books or financial statements, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of less than five years or criminal detention, and/or be imposed a fine not less than 20,000 yuan but not more than 200,000 yuan.

Where a unit commits the crime as mentioned in the preceding paragraph, it shall be imposed a fine, and the persons who are directly in charge or persons who are directly responsible for the offence shall be punished according to the preceding paragraph."

2. Article 168 of the Criminal Law is amended as: "Where an employee of a state-run company or enterprise is seriously irresponsible or abuses the office, causing its bankruptcy or serious losses to the state-owned company or enterprise, and causing heavy losses to the interests of the state, he shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention; where the losses to the interests of the state is extremely heavy, he shall be sentenced to fix-term imprisonment of not less than three years but not more than seven years. Where an employee of a state-owned institution commits the crime as mentioned in the preceding paragraph, causing heavy losses to the interests of the state, he shall be punished according to the preceding paragraph.

Where an employee of a state-owned company, enterprise or institution commits the crimes as mentioned in the preceding two paragraphs out of irregularities for favoritism, he shall be given a heavier punishment according to the first paragraph of this article."

3. Article 174 of the Criminal Law is amended as: "Whoever establishes, without the approval of the competent authorities of the state, a commercial bank, securities exchange, futures exchange, futures brokering company, insurance company or other financial institutions, he shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and/or shall be imposed a fine of not less than 20,000 yuan but not more than 200,000 yuan; if the circumstances are serious, he shall be sentenced to fix-term imprisonment of not less than three years but not more than ten years, and/or shall be imposed a fine of not less than 50,000 yuan but not more than 500,000 yuan.

Whoever forges, alters or transfers the permit for operation or other documents of approval of a commercial bank, securities exchange, futures exchange, futures brokering company, insurance company or other financial institutions, he shall be punished according to the preceding paragraph.

Where a unit commits the crimes as mentioned in the preceding two paragraphs, it shall be imposed a fine, and the persons who are directly in charge or who are directly responsible for the offence shall be punished according to the first paragraph of this article.

4. Article 180 of the Criminal Law is amended as: "Any insider who possesses inside information about any stock or futures exchange transactions, or anyone who illegally obtains such information, prior to the publication of the information that concerns stock or futures exchange transactions that has a vital bearing on the stock price, buys or sells the very stock or divulges the very information, shall, if the circumstances are serious, be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and/or be imposed a fine of not less than one time but not more than five times of the illegal gains; if the circumstances are extremely serious, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than 10 years and shall also be imposed a fine of not less than one time but not more than five times of the illegal gains.

Where a unit commits the crime as mentioned in the preceding paragraph, it shall be imposed a fine, and the persons who are directly in charge or who are directly responsible for the offence shall be sentenced to fix-term imprisonment of not more than five years or criminal detention. The range of inside information and the insiders shall be determined in accordance with the laws and administrative regulations."

5. Article 181 of the Criminal Law is amended as: "Whoever fabricates and spreads false information to adversely affect stock or futures exchange transactions, disrupt the stock or futures exchange market shall, if the consequences are serious, be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and/or be imposed a fine of not less than 10,000 yuan but not more than 100,000 yuan.

Any employee of a stock exchange, futures exchange, securities company or futures brokering company or any member of a securities association or futures association or department for the administration of securities or futures who deliberately provides false information or forges, alters or destroys transaction records in order to cajole investors into buying or selling securities or futures contracts and thus serious consequences have resulted, shall be sentenced to fixed- term imprisonment of not more than five years or criminal detention, and/or shall be imposed a fine of not less than 10,000 yuan but not more than 100,000 yuan; if the circumstances are extremely serious, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than 10 years, and/or shall be imposed a fine of not less than 20,000 yuan but not more than 200,000 yuan.

Where a unit commits the crime as mentioned in the preceding two paragraphs, it shall be imposed a fine, and the persons who are directly in charge or who are directly responsible for the crime shall be sentenced to fix-term imprisonment of not more than five years or criminal detention."

6. Article 182 of the Criminal Law is amended as: "Whoever commits any of the following acts by rigging stock or futures prices in order to obtain illegitimate profits or transfer risks shall, if the circumstances are serious, be sentenced to fixed-term imprisonment of not more than five years or criminal detention, and/or shall be imposed a fine of not less than one time but not more than five times of the illegal gains:

(1) rigging stock or futures prices by working alone or by conspiracy in concluding transactions jointly or continuously through a mustering superiority in the holding of funds, shares or futures storage or in the use of information;

(2) affecting stock or futures prices or the volume of stock or futures transactions by colluding with another and carrying out stock or futures exchange transactions between themselves at a time, price or in a manner previously agreed upon, or buying or selling between themselves the securities they do not hold;

(3) affecting the prices of stock or futures or the volume of stock or futures transactions by taking himself as the counterpart of transaction and trading in stocks with himself without transferring ownership of the securities or trading in the futures contracts; or

(4) rigging the prices of stock or futures by any other means.

Where a unit commits any of the crimes as mentioned in the preceding paragraph, it shall be imposed a fine, and the persons who are directly in charge and the persons who are directly responsible for the crime shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention."

7. Article 185 of the Criminal Law is amended as: "Any employee of a commercial bank, securities exchange, futures exchange, securities company, futures brokering company, insurance company or of any other banking institution who, by taking advantage of his position, misappropriates money belonging to the unit or any client shall be convicted and punished according to Article 272 of this Law.

If any employee of a State-owned commercial bank, stock exchange, futures exchange, securities company, futures brokering company, insurance company or other banking institution or any person who is assigned by a state-owned commercial bank, stock exchange, futures exchange, securities company, futures brokering company, insurance company or other banking institution to an institution that is not owned by the state to engage in public service commits the act as mentioned in the preceding paragraph, he shall be convicted and punished according to the provisions in Article 384 of this Law.

8. A clause is supplemented to Article 225 as the third clause: "without permission from the competent authorities of the state, is engaged in the business of securities, futures or insurance." The third clause of the original Law shall be changed accordingly into the fourth clause.

9. This amendment shall come into effect as of the date of promulgation.