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Tong Daochi, a former senior official of China's Hainan province, and an ex-securities regulator was sentenced to death for bribery and insider trading, reported China's official state-run Xinhua News Agency.

Tong also served as a standing committee member of the Hainan Provincial Committee — part of the Communist Party of China — and was former party chief in Sanya, a city in the named province.

A two-year reprieve was given to Tong, which means the sentence could be commuted to life imprisonment or to a fixed term at the end of the two years, as long as he is not convicted of more crimes, or has performed "meritorious service," according to Reuters.

Receiving Bribes

Tong joined the China Securities Regulatory Commission (CSRC) in 2000 after taking up roles at high-profile organisations such as the World Bank and RAND Corp.

In the CSRC, he used his position to accept money and gifts amounting to over 274 million yuan (S$56 million) either by himself or those who knew him, according to Xinhua.

For the bribes received, he would help with matters regarding listing companies, business operations, financing borrowing and personnel promotion.

Insider Trading

The court also found that he made use of insider data from CSRC by disclosing it to his close relatives and close connections, who then bought stocks.

Between 2006 and 2007, Tong gained over 3.38 million yuan (S$694,000) in illegal profits as a result.

Granted a reprieve

Tong's "political rights" were stripped for life, with all his personal properties seized.

The Shenzhen Intermediate People's Court in Guangdong province said that the ill-gotten monies and benefits should be returned to the state treasury.

However, Tong's death sentence was suspended due to his remorsefulness and his cooperation during the investigation, including helping to return his "illegal gains".

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