Insider trading is a criminal offence in China. Under Article 180 of the Criminal Law, trading securities or futures on price-sensitive information that is not yet public — or leaking that information, or tipping others to trade on it — is punishable by up to five years in prison, or five to ten years if the circumstances are especially serious.

The Offence Under Criminal Law Article 180

Article 180 targets two groups: people who legitimately know inside information (insiders), and people who illegally obtain it. Before the information is made public, it is a crime for them to buy or sell the relevant securities, trade related futures, disclose the information, or expressly or implicitly tell others to trade on it.

The penalties scale with seriousness. If the circumstances are “serious,” the sentence is up to five years’ imprisonment or criminal detention, plus a fine of one to five times the illegal gains (or a fine alone). If they are “especially serious,” the sentence is five to ten years, plus a fine of one to five times the illegal gains. Companies can be held liable too, with fines on the entity and on the executives directly responsible.

When Does It Become “Serious”? The 2026 Thresholds

In July 2026, the Supreme People’s Court and the Supreme People’s Procuratorate amended the interpretation that sets the numbers (Fa Shi [2026] No. 13). Under the amended Article 6, “serious circumstances” include, among others: securities trading turnover of at least RMB 2 million; futures margin of at least RMB 1 million; a profit or avoided loss of at least RMB 500,000; insider trading three or more times within two years; or tipping three or more people to trade.

Those figures matter because they mark the line where regulators move from administrative fines to a criminal case.

What This Means in Practice

For executives, directors, and anyone close to a deal, the exposure is broader than your own trades. Passing a “hint” to a friend or relative who then trades can satisfy the offence, and so can failing to keep sensitive information contained. Because insider trading also breaches the securities laws, one episode can trigger both a China Securities Regulatory Commission penalty and a criminal prosecution.

An Illustration (Hypothetical)

Imagine a listed-company director who learns at a board meeting that the company will announce a major acquisition. Before the announcement, he buys shares through a relative’s account and mentions the deal to a business partner, who also buys. Once the deal is public and the trades are traced, both the purchase and the tip fall within Article 180, and the turnover and profits are measured against the thresholds above. This is a hypothetical scenario, not a report of a specific case.

The takeaway: in China, the line between a “market tip” and a crime is drawn by statute and by numbered thresholds — treat material non-public information as something you can neither trade on nor share.

FAQ

Q: Is insider trading a crime in China?

A: Yes. Under Article 180 of the Criminal Law, trading securities or futures on price-sensitive information that is not yet public, or leaking that information or tipping others to trade on it, is punishable by up to five years in prison, or five to ten years if the circumstances are especially serious.

Q: When does insider trading become serious enough to be a crime?

A: Under the amended Article 6 of the 2026 interpretation, serious circumstances include securities trading turnover of at least RMB 2 million, futures margin of at least RMB 1 million, a profit or avoided loss of at least RMB 500,000, insider trading three or more times within two years, or tipping three or more people to trade.

Q: Does tipping someone else count as insider trading?

A: Yes. Passing a hint to a friend or relative who then trades can satisfy the offence, and so can failing to keep sensitive information contained.

Q: What penalties apply to insider trading?

A: If the circumstances are serious, the sentence is up to five years of imprisonment or criminal detention, plus a fine of one to five times the illegal gains or a fine alone. If they are especially serious, the sentence is five to ten years, plus a fine of one to five times the illegal gains.

Q: Can the company also be liable?

A: Yes. Companies can be held liable too, with fines on the entity and on the executives directly responsible, and one episode can trigger both a China Securities Regulatory Commission penalty and a criminal prosecution.

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Wang Guan | Co-founder, Beijing Haolue Law Firm | +86 17813108512