Rat Trading 老鼠仓交易
Rat trading is a type of insider trading in which investment fund managers illicitly use private information, accessed often through their company, for personal gain. Rat traders use this confidential information profitably by trading through secret “rat accounts” controlled by the manager for relatives and friends. Sometimes a rat trader will first use client money to influence share prices in order to benefit the investments made with personal funds. In February 2009, the Standing Committee of the National People’s Congress passed a revision to the Criminal Act, elevating rat trading to a criminal offense punishable by up to 10 years of imprisonment. The China Securities Regulatory Commission has been cooperating with stock exchanges and using big data technologies to comb through huge amounts of trading data to catch rat traders.