Wu is accused of making RMB 42m ($6.2m) in illicit gains between 2012 and 2015, by trading on confidential information related to activities of a mutual fund.
Wu left ICBC Credit Suisse, China’s second largest mutual fund house, in 2015, according to Caixin, a Chinese news service. He was arrested in January 2017 and is currently on trial.
According to CCTV, a trade monitoring system of the Shenzhen Stock Exchange raised a red flag about transactions in two brokerage accounts in 2015.
The two accounts are under the names of Wu’s father and uncle.
Further investigation found that 113 stock transactions made in these two accounts, starting in 2012, had been tracking the trading activities of a mutual fund. The transactions totalled RMB 1bn, CCTV said.
By conducting personal trading in these accounts during work, Wu made a profit of RMB 42m by using RMB 17m of capital, the news report said.
The broadcaster revealed the details of the case last week, after the Ministry of Public Security issued an online statement (in Chinese) that it had completed its investigation and sent the case to prosecution.
The case is the second insider trading scandal within ICBC Credit Suisse, the mutual fund joint venture between ICBC, the world’s largest bank, and Credit Suisse.
Last year, Wang Yong, a fund manager, was jailed for two years and fined RMB 2.5m for trading on non-public information.
Stressing the seriousness with which China’s government intends to deal with insider trading, the Ministry of Public Security said it had initiated around 80 legal cases since 2014.
In a separate statement (in Chinese) the China Securities Regulatory Commission said that it had investigated 99 such cases since 2014, involving RMB 80bn in trades.
CSRC said it had filed 83 cases to the Ministry of Public Security for prosecution. They involve fund managers from Bosera, China Post & Capital and E Fund among others.