CSRC looks into possible insider trading

The China Securities Regulatory Commission is looking into a possible insider-trading scheme that involves a senior executive of the Bank of Beijing, a spokesperson for the commission said on Friday.

Xiaomi, Bank of Beijing in Net deal

Zhou Ge, the CSRC spokesperson, said the commission noticed media questions about the deputy head of the Bank of Beijing buying bank shares two days before the bank announced a partnership with Xiaomi Corp, a domestic smartphone maker.

Zhou said CSRC is requiring the bank to publish a statement explaining the issue. The Beijing bureau of CSRC and the Shanghai Stock Exchange will take action if misconduct is found after an investigation, Zhou said.

Chinese smartphone maker Xiaomi Corp and the Bank of Beijing signed a deal on Wednesday to form a strategic partnership aimed at tapping Internet finance.

The bank said in a public statement on Tuesday that Zhao Rui'an, its deputy head, spent 220,000 yuan ($36,110) to buying 30,000 shares in the bank on Monday, two days before the partnership was announced.

Zhao insisted that buying shares was a personal decision. The bank's share price reached its daily limit on Wednesday, driven by the partnership announcement.