Stock speculation earnings of 40,000 yuan were pulled out of the insider trading case of senior executives of state-owned enterprises

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 Stock speculation earnings of 40,000 yuan were pulled out of the insider trading case of senior executives of state-owned enterprises


Recently, the SFC held a press conference to impose administrative penalties on six insider trading cases according to law. Among them, Zhu Deshengs insider trading cases of Qujiang Wenlu (600706.SH) and Xian Diet (000721.SZ) are listed. According to law, the SFC confiscates 39,792.82 yuan of his illegal income and fines 79,585.64 yuan.

According to the SFC, Zhu Desheng is an insider of insider information such as Overseas Chinese City West Investment Acquired 51% of Qujiang Wendu Investment and Changed the Actual Controller of Qujiang Wenlu, Overseas Chinese City Group Acquired 21.04% of Xian Diet and Changed the Controlling Shareholder of Xian Diet. He traded Qujiang Wenlu stock and Xian Diet stock during the sensitive period of insider information, which seriously damaged the securities market. The principle of Three Goods infringes on investorsright to know the information of listed companies, which must be dealt with resolutely.

In addition to the above cases, the SFC also punished the cases of Modern Pharmaceutical (600420.SH), Huawen Media (000793.SZ), * ST Lion Head (600539.SH) and Shun Wan Technology (300113.SZ).

Zhu Desheng, head of the Audit Department, is currently on vacation for knowing the law and breaking the law

After investigating and searching the enterprises, the reporter of China Times found that on December 29, 2017, OCT Group Co., Ltd. changed the companys supervisory information and added Zhu Desheng as the supervisor of employees, belonging to the companys main personnel.

After searching for keywords such as Overseas Chinese Town and Zhu Desheng, the reporter found that Zhu Deshengs latest public action was to conduct a survey in Yunnan Wentou Group in July 2018 as the general manager of the Overseas Chinese Town Groups Supervision and Audit Department.

Overseas Chinese Town Group Company is a large central enterprise group company under SASASAC. Its predecessor is the Overseas Chinese Town Development Corporation of Shenzhen Special Economic Zone. It was renamed Overseas Chinese Town Economic Development Corporation in 1997 and Overseas Chinese Town Group Company in 1997.

A person close to the company disclosed to reporters that the chairman of OCT is at least the official leadership level of the central enterprises at the main office level, and the general manager of the group company is also the official leadership position of the central enterprises at the Department level. The general manager of a department like Zhu Desheng reckons that it should belong to the official leadership level of the central enterprises at the regular office level.

The reporter then contacted OCT, and the front desk transferred the phone to Zhu Deshengs office after knowing the identity of the journalist. An unidentified man told the reporter that Zhu Desheng is currently on vacation. The man did not respond to the reporters subsequent questions about whether Zhu Deshengs current position had changed and whether the company had given him relevant sanctions. He hung up the phone in a hurry.

When the reporter contacted OCT for the last time, the front desk changed its voice and said that Zhu Desheng needed to make an appointment in advance and obtain the consent of the relevant leaders before he could transfer the phone.

Overseas Chinese City Group has publicly stated in response to the incident a few days ago that Zhu Deshengs trading of stocks in the sensitive period of insider information is an individual act, and the penalty decision is subject to the notice of the Securities Regulatory Commission. Overseas Chinese City Group will deal with it in accordance with regulations.

A senior HR of a large central enterprise told reporters in the Huaxia Times that, generally speaking, the leaders of the inspection and audit department are very familiar with the national economic and legal knowledge, financial accounting knowledge, economic management knowledge and audit basic knowledge, and have many years of financial audit experience, strong audit planning ability, and generally have the experience of integrity supervision. As the head of the audit department, Zhu Deshengs insider trading is knowingly committing crimes, knowingly breaking the law.

Overseas Chinese Citys Acquisition of Two Listed Companies Successfully Failed

Zhu Deshengs insider trading case has led to two acquisitions by OCT in the past two years. It is noteworthy that both acquisitions have been blown up.

The reporter of the China Times learned that Duan Xiannian, the chairman of the Overseas Chinese Town, once served as the director of the Management Committee of Qujiang New Area in Xian.

On June 19, 2017, the Overseas Chinese City signed a comprehensive strategic cooperation agreement with the Xian Municipal Government. It is estimated that the total investment will be about 238 billion yuan in five years. The project will cover Xixian New Area, Weiyang District, Beilin District, Lianhu District and Qujiang New Area. At the same time, it intends to control two listed companies in Shaanxi Province, Qujiang Wenlu and Xian Diet, through capital increase and share transfer.

According to Qujiang Wenlu announcement, Overseas Chinese Town West Investment Co., Ltd. (a wholly-owned subsidiary of Overseas Chinese Town Group) intends to acquire 51% of the indirect controlling shareholder of Qujiang Wenlu by increasing capital. After the completion of the capital increase, the actual controller of Qujiang Wenlu will be changed from the Management Committee of Qujiang New Area in Xian to the SASASAC of the State Council.

According to the Strategic Cooperation Framework Agreement on Investment Platform and Cooperative Projects signed by Qujiang New Area Management Committee and Overseas Chinese Town Group in Xian, the Western Investment Company of Overseas Chinese Town intends to invest 11.358 billion yuan in Qujiang Wen, of which 8.639 billion yuan is the registered capital of Qujiang Wen, and the remaining 2.719 billion yuan is included in Qujiang Wens investment capital stock. The indirect control holds 51.66% of the shares issued by Qujiang Wenlu.

A year later, on May 30, 2018, Qujiang Wenlu announced that the company had received the Termination Agreement signed by Xian Qujiang Cultural Industry Investment (Group) Co., Ltd. with Xian Qujiang New Area Management Committee, Overseas Chinese City Group Co., Ltd., Overseas Chinese City West Investment Co., Ltd., and Xian Qujiang Cultural Holding Co., Ltd.

According to the Termination Agreement, the evaluation report and audit report of all the relevant shareholdersrights and interests of Qujiang Wentuo, the parent company of Qujiang Wentuo Holdings, expired on May 31. Both sides considered that if they continue to examine and approve the issue of capital increase and stock expansion, they need to re-evaluate Qujiang Wentuo and re-report it. Whether the matter can be completed within the validity period of the agreement is of great uncertainty. Therefore, all parties agreed that the investment in the western part of OCT will no longer increase the capital and share of Qujiang Wendu, and all relevant agreements will be terminated from May 30.

Another listed company, Xian Catering, announced on June 29, 2017 that Xilu Group, the controlling shareholder of the company, intends to transfer its 74.8584 million shares to OCT Group. After the above transfer and authorization are completed, OCT Group will become the controlling shareholder of the company, and SASASAC of the State Council will become the actual controller of the company. On January 2, 2019, the acquisition report issued by Xian Diet showed that the Xian Municipal Government intends to transfer 100% of the state-owned equity of Xilu Group, which is authorized by Xian SASASAC, to Qujiang Management Committee free of charge. After the transfer is completed, the actual controllers of listed companies will be changed from Xian SAC to Qujiang Management Committee. Overseas Chinese Town (OCT), as a large central enterprise which has signed comprehensive strategic cooperation with Xian Municipal Government, has failed in the acquisition of Qujiang Wenlu and Xian catering listed companies. Whether it is related to the punishment of supervisors for insider trading of company executives will be tracked up by this newspaper. Source: Author of the China Times: Jia Jingyan, Editor-in-Charge: Han Jiapeng_NN9841

Another listed company, Xian Catering, announced on June 29, 2017 that Xilu Group, the controlling shareholder of the company, intends to transfer its 74.8584 million shares to OCT Group. After the above transfer and authorization are completed, OCT Group will become the controlling shareholder of the company, and SASASAC of the State Council will become the actual controller of the company.

On January 2, 2019, the acquisition report issued by Xian Diet showed that the Xian Municipal Government intends to transfer 100% of the state-owned equity of Xilu Group, which is authorized by Xian SASASAC, to Qujiang Management Committee free of charge. After the transfer is completed, the actual controllers of listed companies will be changed from Xian SAC to Qujiang Management Committee.

Overseas Chinese Town (OCT), as a large central enterprise which has signed comprehensive strategic cooperation with Xian Municipal Government, has failed in the acquisition of Qujiang Wenlu and Xian catering listed companies. Whether it is related to the punishment of supervisors for insider trading of company executives will be tracked up by this newspaper.