The former first deputy director of CSRC was punished: involving Hunan nonferrous metals and other companies to go to Hong Kong for listing review

category:Finance
 The former first deputy director of CSRC was punished: involving Hunan nonferrous metals and other companies to go to Hong Kong for listing review


Chen, the briber in this case, testified that in 2006, Liu Xin said that he knew that there were stocks that could earn money. These stocks would be listed in Hong Kongs H-share market in the near future. He asked if anyone he knew could buy stocks in Hong Kong. He could contact the issuer or underwriter to buy these stocks by way of rationing. If he made money, he and he would each take 50% of the profits.

Chen therefore found his friend Zhu and asked him to invest in Hong Kong to buy these stocks. After making money, Liu Xin made 50% of the profits, and Zhu and Zhu each took 25%.

According to the judgment, Liu Xin and Chen discussed which stocks Liu Xin could buy. These stocks are usually stocks that he has reviewed and prepared for H-share listing in Hong Kong. Therefore, he is familiar with the issuers or underwriters of these stocks. He will tell the issuers or underwriters that he has friends who want to participate in the placement of H-share listing in Hong Kong. After that, he will issue The contact information of the relevant personnel of the bank or the underwriter shall be informed to Chen Mou. Chen Mou shall contact these people to communicate the number of shares subscribed for the allotment, and then inform Zhu Mou of the contact information of the issuer or underwriter. Zhu Mou shall be responsible for communicating the specific matters of subscription and allotment with the other party.

Chen and Zhu usually sell all the allocated shares on the day of listing or the next day to get a premium. Then Zhu will transfer 75% of the proceeds that should be given to Chen and Liu Xin to Chen by bank transfer.

The then head of Hunan nonferrous metals also testified that he met Liu Xin in the process of applying to the CSRC for H-share listing in Hong Kong, and Liu Xin asked him to help buy shares before the issuance of shares, and he arranged staff to handle the matter.

From 2006 to 2007, after Zhu remits the proceeds of stock placement to Chen, Chen successively gives Liu Xin some cash, totaling about 1.5 million yuan. In 2006, he spent 928000 yuan on two golf cards, one of which was given Liu Xins name. The CSRCs official reply and approval documents on the approval of Hunan nonferrous metals and Luanchuan molybdenum industry to issue overseas listed foreign shares show that Liu Xin is the director of the undertaking department and signs on the corresponding documents for approval. Liu Xins ex-wifes testimony proves that in the second half of 2007, Liu Xin took some cash home and deposited it into an account opened in the name of her brother to speculate. According to the judgment, Liu Xin has no objection to the facts of the accusation, and actively and truthfully confesses the main criminal facts that the relevant authorities do not have, with the circumstances of surrendering himself, and actively refunds all the stolen money. The court gives him a lighter punishment and applies a suspended sentence. Finally, Liu Xin was convicted of taking bribes, sentenced to three years in prison with a three-year reprieve and a fine of 200000 yuan. Source: responsible editor of 21st century economic report: Yang bin_nf4368

From 2006 to 2007, after Zhu remits the proceeds of stock placement to Chen, Chen successively gives Liu Xin some cash, totaling about 1.5 million yuan. In 2006, he spent 928000 yuan on two golf cards, one of which was given Liu Xins name.

The CSRCs official reply and approval documents on the approval of Hunan nonferrous metals and Luanchuan molybdenum industry to issue overseas listed foreign shares show that Liu Xin is the director of the undertaking department and signs on the corresponding documents for approval.

Liu Xins ex-wifes testimony proves that in the second half of 2007, Liu Xin took some cash home and deposited it into an account opened in the name of her brother to speculate.

According to the judgment, Liu Xin has no objection to the facts of the accusation, and actively and truthfully confesses the main criminal facts that the relevant authorities do not have, with the circumstances of surrendering himself, and actively refunds all the stolen money. The court gives him a lighter punishment and applies a suspended sentence. Finally, Liu Xin was convicted of taking bribes, sentenced to three years in prison with a three-year reprieve and a fine of 200000 yuan.