11 tickets lead to insider trading! From sisters to attending doctors

category:Finance
 11 tickets lead to insider trading! From sisters to attending doctors


A few days ago, Shanghai Securities Regulatory Bureau announced 11 administrative punishment decisions, outlining a major case of insider trading. Although the transaction amount of the people involved in the case is different, the subject matter of the transaction is the same stock, easy to see shares, and the trading time is quite close. From the perspective of this insider trading, unreliable independent directors and colleagues with ulterior motives may become the leakers of insider information.

In the transmission of news, friends from classmates, in laws of sisters, attending doctors Various kinds of intricate social relations have appeared in insider trading. After obtaining the inside information, they rush into the stock market with the attitude of experiment or determination, and finally all of them are supervised and wiped out in one net.

A dead capital increase case led to 11 regulatory penalties, which may not have been thought of when the relevant parties discussed cooperation.

On May 16, 2017, Yijian shares, which had just been renamed, issued a notice of suspension of major issues, claiming that it had received a notice from the major shareholders to introduce strategic investors, which might involve a change in control. And in this supervision ticket, revealed more details of the negotiation.

On April 14 of that year, Tang Zhaocheng, Vice Minister of Finance Department of Yunnan World Expo tourism Holding Group Co., Ltd. (hereinafter referred to as Expo tourism group) and Hu Gang, the then independent director of Yijian shares, had a dinner together. They talked about the possibility of the World Expo Tourism Group to cooperate with Jiutian holding, the major shareholder of Yijian shares, in terms of equity. Subsequently, on April 24, Leng Tianqing, Hu Gang, the then general manager of Jiutian holding, and Ge Baorong, the then general manager of the World Expo tourism group, held a meeting to discuss the issue of increasing the capital and equity of the group. Both sides reached a preliminary intention and decided to continue to promote cooperation.

From April 24 to May 12, Expo Tourism Group continued to promote the capital and share expansion of Jiutian holdings, including drafting and signing the draft framework agreement. On May 16, Yijian shares issued a notice of suspension of trading of major events, which disclosed that the companys major shareholder, Jiutian holdings, was planning a major event involving Yijian shares, which may involve the change of control right of Yijian shares. Easy to see shares will be suspended from May 16.

Half a month later, Yijian shares announced to the market the specific contents of this major event: Expo Tourism Group plans to increase the capital of its controlling shareholder, Jiutian holdings, with an estimated capital increase of 4 billion yuan. After the capital increase, Expo tourism group held 40% shares of Jiutian holdings, Leng Tianhui held 30.62% shares of Jiutian holdings, and Leng Tianqing held 29.38% shares of Jiutian holdings. Leng Tianhui and Leng Tianqing agreed to ensure that the Expo Tourism Group will obtain the actual control of Jiutian holding through the agreement arrangement and the articles of association. Expo Tourism Group will indirectly hold 37.17% of Yijian shares, and the actual controller will be changed from Leng Tianhui to SASAC of the State Council.

Affected by the good news, after the resumption of trading on June 12, 2017, Yijian shares opened at a high of 13.37 yuan / share and closed at 12.98 yuan / share, up 6.78% on the same day. However, the good times did not last long, and the issue of capital increase failed to take effect in the end, and the stock price of easy to see shares did not improve significantly.

Students friendship divulges inside information

In the past insider trading cases, careless leaks in the classmate circle are common. In this case, it is easy to see that although Hu Gang, the then independent director of the company, did not make use of the inside information, he was finally punished with 80000 yuan by supervision because of the secret disclosure in private.

Before the suspension of Yijian shares, on May 12, 2017, at a dinner party of classmates, Hu Gang disclosed the good news of Yijian shares to two old students. The two not only bought their own shares, but also repeatedly sold the shares to their relatives and friends Amway, which led to the constant leakage of inside information and the related persons were punished by supervision.

Specifically:

AI Ying and Hu Gang are classmates of primary school, junior high school and high school. In 2017, they were the president and vice president of the class in Kunming. They usually contact and get together more. Before the disclosure of inside information, the two attended a class gathering on May 12, 2017. At the party, Hu leaked the inside information of the case to AI Ying. AI Ying controlled her own account to buy 33800 shares of Yijian shares on May 15, 2017, with a purchase amount of RMB 434902.00; all shares were sold before January 22, 2018, with a profit of 496.97 yuan.

u2014u2014Amy, sister of AI Ying

Shanghai Securities Regulatory Bureau decided to confiscate Ai Meis illegal income of 6982.36 yuan and impose a fine of 30000 yuan.

u2014u2014Li Zhaohui, AI Yings brother-in-law

On May 15, 2017, Li Zhaohui used his account to buy 50500 shares of Yijian shares, with a purchase amount of 655282.00 yuan; all shares were sold before August 28, 2017, with a profit of 12442.91 yuan.

Shanghai Securities Regulatory Bureau decided to confiscate Li Chaohuis illegal income of 12442.91 yuan and impose a fine of 30000 yuan.

u2014u2014Xiao Jiangmei, sister-in-law of AI Ying

Shanghai Securities Regulatory Bureau decided to confiscate Xiao Jiangmeis illegal income of 9177.22 yuan and impose a fine of 30000 yuan.

Li Minghong and Hu Gang are junior high school and high school students. In 2017, they often talk and get together, and have more contact. On February 2, 2017, Hu Minggang disclosed the inside information to Li Minggang. On May 15, 2017, Li Minghong controlled the securities account of his father, Li Xiaoquan, to buy 16400 shares of Yijian shares, with the purchase amount of 211702.00 yuan; all the shares were sold on September 22 and 25, 2017, with actual losses in this transaction.

Shanghai Securities Regulatory Bureau decided to impose a fine of 40000 yuan on Li Minghong.

u2014u2014Li Minghongs colleague Fang Yong:

Fang Yong and Li Minghong are colleagues. Before the disclosure of inside information, Fang Yong heard Li Minghongs phone call related to trading in easily visible shares. Fang Yong admitted that after hearing about the telephone content, he inquired about the situation of Li Minghong Yijian shares. On May 15, 2017, Fang Yong used his wifes account to buy 21200 shares of Yijian shares, with the purchase amount of RMB 274580.00, and sold them all before January 19, 2018. After calculation, the profit is 43576.19 yuan.

Shanghai Securities Regulatory Bureau decided to confiscate Fang Yongs illegal income of 43576.19 yuan and impose a fine of 130000 yuan.

In addition to the dinner, Hu Gang also released inside information through other channels. For example, when visiting her father in hospital, Hu Gang communicated with her fathers attending physician, Zu yunfen, and suggested that she trade Yijian shares. On May 15, 2017, Zu yunfen bought 19200 shares of Yijian shares with a purchase amount of 248272.00 yuan, and sold them all on June 12 (resumption date) and 15 June 2017, making a profit of 11838.06 yuan. Finally, Shanghai Securities Regulatory Bureau decided to confiscate the illegal income of Zu yunfen by 11838.06 yuan and impose a fine of 30000 yuan.

In general, through Hu Gang, there are seven people who have carried out insider trading. From the perspective of profit, due to the different times of exit, and the stock price trend is relatively flat, the related insider trading has not achieved the effect of one capital and ten thousand profits, and even some people have made losses, which can be regarded as stealing chicken does not make a profit.

Peeping through documents to reveal inside information

Hu Gang is not the only one who cant control the inside information. For the information leakage of the other three tickets, the situation is quite strange.

According to the regulatory circular information, when Zuo carried out the work related to capital increase and share expansion, Hu had arranged for Hu to undertake the document transmission and other related specific work. During this period, Li Lianfeng went to Hus office due to business relations, and saw documents related to capital increase and share expansion on his desk, thus obtaining insider information illegally. Similarly, Li Lianfeng shared this good news to her circle of friends..

Based on this, Shanghai Securities Regulatory Bureau finally took three penalties for every one, confiscated 126153.93 yuan of illegal income and imposed a fine of 378461.79 yuan.

Naturally, Zhang Yi is not the only one in Li Lianfengs circle of friends. According to the investigation, after obtaining the inside information, Li Lianfeng also shared the news with her friend Zhang Qiuju when she had dinner together. On May 11, 2017, Zhang Qiuju bought 400000 shares of Yijian shares with the account of others, with a total purchase amount of 5059374.00 yuan, and sold all shares before June 14, 2017, with a total profit of 292756.90 yuan.

Similarly, the Shanghai Securities Regulatory Bureau also gave Zhang Qiuju a punishment of three penalties for every one, with a total fine of 1171000 yuan. In contrast, Li Lianfengs tip off led to higher profits for the two friends, and the penalty amount was also upgraded. Although I did not actually carry out the operation, Li Lianfeng and Hu Gang were fined 80000 yuan for leaking inside information. In September this year, China Securities Regulatory Commission (CSRC) solicited opinions from the market on the revision of the provisions on the establishment of a registration and management system for insiders of listed companies. From the perspective of objectives, the revision of the system is to promote the establishment and improvement of insider information management system of listed companies, enhance the awareness of prevention and control of insider trading of listed companies and related parties, and provide institutional guarantee for preventing and cracking down on insider trading. It is not difficult to find that since this year, the SFC and the local securities regulatory bureaus have seized a number of insider trading cases, and the number of insider trading cases shows a downward trend. However, there are still many unfair transactions using mergers and acquisitions and large fluctuations in performance. Using technical means to crack down on insider trading is still the focus of supervision. Under the heavy hammer of supervision, insider trading will eventually have no escape. Source of this article: Yang Bin, responsible editor of securities companies in China_ NF4368

Similarly, the Shanghai Securities Regulatory Bureau also gave Zhang Qiuju a punishment of three penalties for every one, with a total fine of 1171000 yuan. In contrast, Li Lianfengs tip off led to higher profits for the two friends, and the penalty amount was also upgraded. Although I did not actually carry out the operation, Li Lianfeng and Hu Gang were fined 80000 yuan for leaking inside information.

It is not difficult to find that since this year, the SFC and the local securities regulatory bureaus have seized a number of insider trading cases, and the number of insider trading cases shows a downward trend. However, there are still many unfair transactions using mergers and acquisitions and large fluctuations in performance. Using technical means to crack down on insider trading is still the focus of supervision. Under the heavy hammer of supervision, insider trading will eventually have no escape.