Wang Zhenhuas good friend sun Qiusheng was fined 2 million yuan for selling Xincheng holdings ahead of schedule

category:Finance
 Wang Zhenhuas good friend sun Qiusheng was fined 2 million yuan for selling Xincheng holdings ahead of schedule


After investigation, sun Qiusheng had the following illegal facts:

1u3001 The formation and disclosure of inside information

At noon on July 1, 2019, Wang Zhaohua, then chairman of Xincheng holdings, asked sun Qiusheng to discuss how to deal with the alarm of the family members of the victims who were suspected of child molestation. After that, sun Qiusheng went to other floors.

At about 13:00 on July 1, 2019, four policemen from the police station of Shanghai Municipal Public Security Bureau went to the front desk of block a of Xincheng holding building. Zhang, the Secretary of the then chairman of the board, received the visiting police in the VIP reception room on the 17th floor. Wangs driver Yu told Zhang that Wang would return in about an hour and a half. When sun Qiusheng returned to the 17th floor of Xincheng holding company again, he met the police and was taken back to the police station for questioning. When sun Qiusheng came out of the police station that night, he saw that Wang Xusheng was also being questioned at the police station.

At about 23:00 on July 2, 2019, Wang and his wife Chen went to the police station to listen to Wangs arrangements for the next work. Accompanied by public security personnel, Wang met with Wang.

From 13:00 to 14:00 on July 3, 2019, Wang, Liang, Chen, LV, Guan, Chen and Zhang arrived at the meeting room. Wang told Wang at the meeting to cooperate in the investigation at the police station, requiring the companys directors and senior managers to assess risks and prepare risk prevention plans. The directors and senior managers attending the meeting asked Wang to obtain further confirmation documents for preparation Information disclosure.

At about 15:00 on July 3, 2019, Wang received a call from the police station and went to the police station.

At about 16:30 on July 3, 2019, Wang received the written detention notice and returned to the company. According to the detention notice issued by Shanghai Public Security Bureau, our bureau has detained Wang Xiaohua suspected of child molestation crime at 16:58 on July 2, 2019. Since then, the board of directors of Xincheng holdings confirmed that Wang Zhaohua, the then chairman of the board, was detained in criminal cases, and Chen, Secretary of the board of directors, organized the information disclosure work.

At about 21:48 on July 3, 2019, Metro holdings uploaded the information disclosure document to the website of Shanghai Stock Exchange, and published it on the designated information disclosure media on July 4.

2u3001 Sun holding in insider trading

Sun Qiusheng and Wang have known each other for more than ten years. Before going to the police station on July 1, Wang asked sun Qiusheng to meet with him in his office to help him deal with the matter of reporting to the police by the family members of the victims suspected of child molestation. On the same day, sun Qiusheng was taken to the police station by the police station for questioning on the above matters. When he left the police station, sun Qiusheng saw that Wang Xusheng was also being questioned at the police station. Therefore, sun Qiusheng knew the inside information.

uff082uff09 Sun Qiusheng controls the use of Sun Qiusheng and Qian xujuan securities accounts to trade Xincheng Holdings

Sun Qiusheng securities account was opened in the securities business department of Shanghai Century Avenue of Guohai Securities on April 25, 2001, under which the general account number of Shanghai stock market shareholders is a19xxx1811 and that of Shenzhen stock market shareholders is 005xxx8503. The securities account of Qian Xijuan is opened in the securities business department of China Merchants Securities, Loushanguan Road, Shanghai, with the general account number of shareholders in Shanghai stock market a19xxx4567 and the general account number of shareholders in Shenzhen Stock Exchange 010xxx354. Sun Qiusheng and Qian xujuan are husband and wife relationship. Before and after the sensitive period of insider information, there is no large amount of capital in and out of the Sun Qiusheng securities account and the Qian Mou Juan securities account, and the main source of funds is their own funds.

The securities accounts of Sun Qiusheng and Qian xujuan sold Xincheng Holdings on July 2 and 3, 2019, which were all traded through sun Qiushengs mobile phone number. Sun Qiusheng admitted that the actual controller of Sun Qiusheng and Qian xujuan securities accounts was Sun Qiusheng himself, and admitted that the transaction behavior of selling Xincheng Holdings on July 2 and 3, 2019 was made by sun Qiusheng himself.

During the sensitive period of insider information, Sun Qiusheng securities account sold 25000 shares of Xincheng Holdings on July 2 and 3, 2019, with a transaction amount of 1036209 yuan; and Qian xujuan securities account sold 25000 shares of Xincheng Holdings on July 2 and 3, 2019, with a transaction amount of 1038365 yuan and a total loss avoidance amount of 654335.56 yuan.

uff083uff09 The time when sun Qiusheng sold Xincheng Holdings was highly consistent with the time when he learned the inside information and the formation time of inside information

On July 1, 2019, sun Qiusheng contacted Wang Xiaohua, an insider of insider information, and learned that Wang was investigated by the public security organ for suspected child molestation. On July 2, 20000 shares of Xincheng Holdings were sold in the securities accounts of Sun Qiusheng and Qian Xijuan, and Xincheng Holdings 5 were sold in the securities accounts of Sun Qiusheng and Qian Xijuan on July 3, On July 4, the information disclosure document of Xincheng holdings on the detention of the actual controller and chairman of the company was published in the designated information disclosure media.

The above-mentioned illegal facts can be confirmed by the record of inquiry, announcement and explanation of Metro holdings, transaction records, bank account information, bank securities transfer records and other evidences.

Sun Qiushengs above-mentioned behaviors violate the provisions of Article 73 and paragraph 1 of Article 76 of the securities law of 2005, and constitute the insider trading mentioned in article 202 of the securities law of 2005.

Sun Qiusheng and his agent put forward the following defense opinions in his defense materials and the hearing process:

First, there is a mistake in the application of law to the determination of major events. Wang Zhaohua, the then chairman of Xincheng holding, was suspected of molesting children and was investigated by the public security organ. The matter is neither a major event listed in Item 1 to 11 of Article 67, paragraph 2 of the securities law of 2005, nor is it a other matter prescribed by the securities regulatory agency of the State Council listed in item 12, paragraph 2, Article 67 of the securities law of 2005. First of all, the major events listed in Article 67 (2) (1) to (11) of the securities law of 2005 do not include the situation that the directors of the company are investigated by the public security organs. Secondly, item (11) of paragraph 2 of Article 67 of the securities law of 2005 clearly stipulates that only when a director, supervisor or senior manager of a company is suspected of committing a crime and is subject to compulsory measures taken by the judicial organ, it should not be interpreted separately through item 12 of paragraph 2 of Article 67 of the securities law of 2005. Thirdly, as a departmental regulation, the trust measures should not conflict with the explicit provisions of the securities law of 2005. Compared with Article 67 (2) (11) of the securities law of 2005, the article 30 (2) (11) of the Xinpi measures expands the suspected crime of the companys directors, supervisors and senior managers to the companys directors, supervisors and senior managers are suspected of violating the law and discipline, and the relevant subject of rights is expanded from judicial organ to authority The measures also expanded from taking compulsory measures to investigating or taking compulsory measures, which obviously broke through the provisions of Securities Law of 2005 on major events involving directors, supervisors and senior managers. Therefore, the provision in Article 30 (2) (11) of the trust measures that the investigation of company directors is a major event obviously breaks through the clear provisions of the securities law of 2005, which should be illegal and invalid, and can not be used as the basis for administrative punishment.

Second, the fact of insider information is not clear and the evidence is insufficient. First of all, sun Qiusheng does not meet the subject requirements of insider trading. Sun Qiusheng and Wang Xiaohua are only the cooperative relationship of elevator sales and installation. They do not belong to the insider of inside information of securities trading listed in Article 74 of the securities law of 2005, nor the person who illegally obtains insider information stipulated in the securities law of 2005, and is not the subject of insider trading. Secondly, the content of inside information is wrong. From the time of Xincheng holdings information disclosure, Xincheng holdings disclosed Wangs suspected crime only when Wang formally obtained the written detention notice from the public security organ. Subsequently, Xincheng holdings mentioned Xincheng holdings many times in response to the regulatory authorities verification on whether Xincheng holdings failed to fulfill the obligation of information disclosure in time Whether the information disclosure obligation should be fulfilled depends on whether there is sufficient evidence to show that Wang has been taken compulsory measures by the public security organs. However, after the above reply announcement was made, the regulatory authorities did not ask whether Xincheng holdings fulfilled the obligation of information disclosure in time. The regulatory authorities recognized that Xincheng holdings took taking compulsory measures as the formation time of the major event in information disclosure, but required sun Qiusheng to know that Wangs suspected child molestation was investigated by the public security organs as a major event, and there was a double standard, which was neither legal nor reasonable.

Thirdly, sun Qiushengs trading of Xincheng holding stock is not based on knowing inside information, but is purely a normal independent trading.

Fourth, the willingness to ask for lighter, mitigated or exempted punishment. Sun Qiushengs trading is selling behavior, not actively buying stocks for profit. At the same time, sun Qiusheng is passively aware of inside information and is not subjective and vicious. He did not sell all the stocks of Xincheng holding in the sensitive period. He actively cooperated in the investigation stage. At the same time, sun Qiusheng is enthusiastic about public welfare. As a private entrepreneur, he always abides by the law and operates in accordance with the law. He has made outstanding contributions to the society in tax and employment. In addition, during the epidemic period, sun Qiusheng donated nearly 300000 yuan in cash and medical supplies to the epidemic area in Hubei Province, and organized the company to actively contribute to the fight against the epidemic.

To sum up, the party concerned requests exemption from punishment, or a lighter or mitigated punishment.

After review, I will consider that:

In addition, there is a certain process from the formation of inside information to the disclosure, and the formation time of inside information is not equal to the legal time of information disclosure of listed companies.

According to the fact, nature, circumstances and social harm degree of the illegal acts of the parties concerned, and in accordance with the provisions of article 202 of the securities law of 2005, we have decided to confiscate sun Qiushengs illegal income of 654335.56 yuan and impose a fine of 1308671.12 yuan.

Within 15 days from the date of receiving this punishment decision, the above-mentioned parties shall remit the fines and confiscations to the China Securities Regulatory Commission with the opening bank: Beijing Branch Business Department of China CITIC Bank, account No.: 7111010189800000162, which shall be directly turned over to the state treasury, and a copy of the payment certificate with the name of the party shall be sent to the office of the administrative penalty Committee of the China Securities Regulatory Commission keep on record. If the party concerned is not satisfied with the punishment decision, it may apply to the China Securities Regulatory Commission for administrative reconsideration within 60 days after receiving the punishment decision, or directly file an administrative lawsuit with the peoples court with jurisdiction within 6 months from the date of receiving the punishment decision. During the period of reconsideration and litigation, the execution of the above decision shall not be suspended. China Securities Regulatory Commission on August 3, 2020 read a number of bank warnings: if credit card funds buy real estate and stock speculation, the amount will be reduced and payment will be stopped. The former chairman of Wantong technology is accused of being punished by the major shareholder of criminal case. Lei Juns first response and Dong Mingzhus 5-year bet: I won the regret bet in the sixth year. Source: Zhong Qiming, editor in charge of China Securities Regulatory Commission_ NF5619

Within 15 days from the date of receiving this punishment decision, the above-mentioned parties shall remit the fines and confiscations to the China Securities Regulatory Commission with the opening bank: Beijing Branch Business Department of China CITIC Bank, account No.: 7111010189800000162, which shall be directly turned over to the state treasury, and a copy of the payment certificate with the name of the party shall be sent to the office of the administrative penalty Committee of the China Securities Regulatory Commission keep on record. If the party concerned is not satisfied with the punishment decision, it may apply to the China Securities Regulatory Commission for administrative reconsideration within 60 days after receiving the punishment decision, or directly file an administrative lawsuit with the peoples court with jurisdiction within 6 months from the date of receiving the punishment decision. During the period of reconsideration and litigation, the execution of the above decision shall not be suspended.

China Securities Regulatory Commission

August 3, 2020