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BIZCHINA / News

Universities banned from stock speculation

(Xinhua)
Updated: 2007-08-31 14:36

China's education authorities are warning colleges and universities to be
away from risk investment in stocks and bonds, amid a continuously
frantic national entry into the stock markets over the past months.

Wu Qidi, Vice Minister of Education, said on Thursday, "Colleges and
universities should not invest in companies with funds allocated by the
state finance, funds for infrastructure constructions and tuition fees
collected from students."

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" Nor should they misappropriate the money to buy stocks," Wu said,
without mentioning what penalties offenders will face. Most institutions
of higher learning in China are funded by the government and even private
colleges are non-profit organizations by law.

High university officials have been found to dip into their purses to
speculate in the stock market.

Shan Ping, former head of Tianjin University in the northern port of
Tianjin, was expelled from the National People's Congress, China's top
legislature, in December last year for misuse of research funds.

He was found to have invested 100 million yuan (US$12.8 million) of
university funds in stocks and shares between 2000 to 2001, causing a
loss of 37.6 million yuan.

After four years in the doldrums, China's stock markets began to rebound
at the beginning of 2006, with the benchmark Shanghai Composite Index
hitting the 5,000-point mark for the first time last Thursday since it
was established 18 years ago.

Wu also reiterated that institutions of higher learning as well as their
internal organs are not allowed to be engaged in illegal business
operations or fund raising among teachers and other work staff.

(For more biz stories, please visit Industry Updates)

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