(Selected from the translated work titled The Criminal Law of the People's Republic of China, authored by Robert Zhang and Steve Li, criminal defense lawyers registered in Shanghai, China.)
Article 160 [Fraudulently Issuing Securities] A person who, when issuing stocks, corporate bonds, depositary receipts or other securities recognized by the State Council in accordance with the law, conceals important facts or fabricates significant false contents in the prospectus, subscription forms, measures for raising corporate bonds, or other issuance documents, shall be sentenced to imprisonment of not more than five years or custody and/or a fine if the amount is significant, serious consequences are caused thereby, or the offense is committed under other serious circumstances, or to imprisonment of not less than five years and a fine if the amount is particularly significant, particularly serious consequences are caused thereby, or the offense is committed under other particularly serious circumstances.
A controlling shareholder or actual controller who organizes or instigates the commission of the acts stipulated in the preceding paragraph shall be sentenced to imprisonment of not more than five years or custody and/or a fine of not less than twenty percent but not more than one hundred percent of the amount of illegally raised funds, or to imprisonment of not less than five years and a fine of not less than twenty percent of but not more than one time the amount of illegally raised funds if the amount is particularly significant, particularly serious consequences are caused thereby, or the offense is committed under other particularly serious circumstances.
Where an entity commits any of the offenses stipulated in the preceding two paragraphs, the entity shall be sentenced to a fine not less than twenty percent but not more than one hundred percent of the amount of illegally raised funds, and the directly responsible chief and other directly responsible individuals shall be punished in accordance with the first paragraph.
