Informed friend of Wang Zhenhuas case: double fine for avoiding losses in stock market

category:Finance
 Informed friend of Wang Zhenhuas case: double fine for avoiding losses in stock market


On August 4, the China Securities Regulatory Commission (CSRC) issued the judgment on administrative penalty issued by sun Qiusheng, the legal representative and chairman of Shanghai Shuangling Elevator Engineering Co., Ltd., which confirmed that sun Qiusheng sold the shares of Xincheng Holdings on July 2 and 3 after he learned the inside information about Wang Zhenhua being investigated by the public security organs on July 1, 2019.

Finally, the CSRC decided to confiscate sun Qiushengs illegal income of 654000 yuan and impose a fine of 1.308 million yuan.

Sun Qiusheng and Wang Zhenhua have known each other for more than ten years. Before going to the police station on July 1, Wang Zhenhua asked sun Qiusheng to meet with him in his office to assist him in handling the matter of reporting to the police by the family members of the victims suspected of child molestation.

Wang Zhenhuas friends know the case in advance and sell stocks

On July 1, 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 Zhenhua was also being questioned at the police station. Therefore, sun Qiusheng knew the inside information.

Judging from the transaction flow of sun Qiushengs and his wifes accounts, Xincheng Holdings was not traded from May 15 to July 1. Sun Qiusheng sold Xincheng Holdings after knowing that Wang Zhenhua was investigated by the public security organs. According to the CSRC, the transaction time of sun Qiusheng and his wife was highly consistent with the time when they learned the inside information and the formation time of the inside information. They had obvious motivation to sell Xincheng Holdings in order to avoid loss during the sensitive period.

Details of Wang Zhenhua case re exposed

In the punishment judgment on Sun Qiusheng, the CSRC further disclosed various details of Wang Zhenhuas involvement in child molestation.

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. Wang Zhenhua driver Yu Xiaojie told Zhang that Wang Zhenhua would come back 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 Zhenhua was also being questioned at the police station.

At about 13:00 on July 2, 2019, Wang Xiaosong, the son of Wang Zhenhua, received a call from the police station and asked him to go to the police station.

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

At about 9:30 on July 3, 2019, Wang Xiaosong informed director Lv Xiaoping, deputy general manager and director Liang Mou Cheng, vice president and director Chen Mali, financial director Guan Mou Dong and director Chen Mou Li, scheduled to hold the meeting at about 13:00 on July 3, 2019.

From 13:00 to 14:00 on July 3, 2019, Wang Xiaosong, Liang xcheng, Chen Dali, LV Xiaoping, Guan Xiaodong, Chen Mou and Zhang Xiaoping arrived at the meeting room. Wang Xiaosong told Wang Zhenhua orally at the meeting that he would cooperate with the investigation at the police station, requiring the companys directors and senior managers to assess the risks and prepare risk prevention plans. The directors and senior managers attending the meeting asked Wang Xiaosong to obtain further confirmation documents for preparation Information disclosure. At about 15:00 on July 3, 2019, Wang Xiaosong received a call from the police station and went to the police station. At about 16:30 on July 3, 2019, Wang Xiaosong 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 Zhenhua, 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. This article source: Netease extra editor: Yang Qian_ NF4425

From 13:00 to 14:00 on July 3, 2019, Wang Xiaosong, Liang xcheng, Chen Dali, LV Xiaoping, Guan Xiaodong, Chen Mou and Zhang Xiaoping arrived at the meeting room. Wang Xiaosong told Wang Zhenhua orally at the meeting that he would cooperate with the investigation at the police station, requiring the companys directors and senior managers to assess the risks and prepare risk prevention plans. The directors and senior managers attending the meeting asked Wang Xiaosong to obtain further confirmation documents for preparation Information disclosure.

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

At about 16:30 on July 3, 2019, Wang Xiaosong 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 Zhenhua, 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.