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Less worries about stock trading

China Securities Journal reporter learned that the China Securities Association recently collected and sorted out cases of bribery and illegal stock speculation by securities practitioners in recent years, and recently reported it to the industry. It is reported that this move is to implement the comprehensive punishment mechanism for bribery in the capital market of the China Securities Regulatory Commission and the work deployment of strictly cracking down on illegal stock speculation by securities practitioners in accordance with the law, and strengthen the management of practitioners.

The China Securities Association reported six typical cases of bribery and seven cases of illegal stock trading. Among the typical cases of bribery, there were securities company party committee secretaries involved in bribery, securities company employees bribed the deputy secretary general of the municipal government, and some bribed in order to win the bond contracting business.

The Party Secretary of a Securities Company Offered Bribery

Chen was the then general manager of the bond sales and trading department of F Securities; Hu was the then party secretary and general manager of F Securities; Zhou was the then deputy general manager of F Securities; Ye was the then deputy general manager of the bond sales and trading department of F Securities.

In March and April 2010, Chen wanted to establish a structured wealth management product. He contacted D Bank through his subordinates and reached a cooperation intention with Tang, the general manager of the financial market department of D Bank, and Huang, the deputy general manager. After Tang and Huang reported to their superior Deng, the business development committee of D Bank decided to establish a No. 5 wealth management product. Afterwards, F Securities Company signed an investment advisory agreement with D Bank in the name of the asset management department. Chen allocated 4 million yuan of secondary shares to D Bank, which were purchased by Deng and others.

Afterwards, a No. 6 financial product was established based on this model. Huang communicated with Chen and eventually obtained 12 million yuan of secondary shares, which were purchased by Deng and others.

After appraisal, it was found that through the two financial products, Deng benefited a total of 5.9537 million yuan, Tang benefited a total of 3.8 million yuan, Huang's brother benefited 3.9 million yuan, and Chen benefited 20.4986 million yuan.

In May 2010, Chen recommended Song, who was then the director of the Rural Cooperative Financial Settlement Center and deputy director of the Rural Credit Cooperative Union of L Province, to subscribe to a No. 5 secondary wealth management product, earning a profit of 3.0768 million yuan. Song realized that wealth management products could have high returns, so he continued to ask Chen for secondary shares of wealth management products. Chen proposed that Song provide assistance in building a position in a No. 6 wealth management product, and Song agreed.

Under Song's arrangement, the Provincial Cooperative Bank sold five bonds (with a total face value of 400 million yuan) it held to a No. 6 financial product issued by Chen at a price lower than the valuation of China Bonds between September 16 and 17, 2010. According to appraisal, the Provincial Cooperative Bank suffered a loss of 6.57 million yuan. Song used his position to receive and demand four secondary shares of financial products from Chen, seeking improper benefits for Chen and making a total profit of 17.07 million yuan.

From May to October 2010, G Securities Company successively underwrote five primary market bonds. Sun, the former vice president of G Securities Company, discussed with Hou, the former deputy general manager of the fixed income department of G Securities Company, and others and decided to ask for kickbacks from distributors when selling the bonds, that is, premium distribution, which was carried out by Hou. After learning about this, Ye, the deputy general manager of the bond sales and trading department of F Securities Company, told Chen about it. Chen reported it to Hu, the then party secretary and general manager of F Securities Company, and Zhou, the then deputy general manager of F Securities Company, and the two agreed to pay kickbacks to obtain bonds.

In the end, F Securities Company made a total profit of 104 million yuan from distributing the five bonds. During this period, Chen instructed Ye to contact Hou to return the deducted money. After appraisal, F Securities Company returned a total of 76.81 million yuan in kickbacks to Sun and others.

In this case, while serving as the general manager of the bond sales and trading department of F Securities Company, Chen gave huge amounts of money and property to Song, Deng and others in order to obtain improper benefits for the company and himself. His actions constituted the crime of bribery and the crime of bribery of non-state officials.

Hu and Zhou, as the directly responsible supervisors, agreed with Chen and others to give huge amounts of money and property to Sun and others from G Securities Company in order to obtain improper benefits for the unit. Their actions constituted the crime of bribery of non-state officials.

As the deputy general manager of the bond sales and trading department of F Securities Company, Ye gave huge amounts of money and property to Sun and others in order to obtain improper benefits for the company. His behavior constituted the crime of bribery of non-state officials.

Chen was convicted of embezzlement (details of the case omitted), bribery, and bribery of non-state officials, and was sentenced to 13 years' imprisonment and a fine of RMB 500,000; the illegal gains were confiscated.

Hu was convicted of abuse of power against state-owned company personnel (details of the case omitted) and bribery of non-state officials, and was sentenced to four years and one month in prison and a fine of RMB 200,000; his illegal gains were confiscated.

Zhou was convicted of abuse of power by a state-owned company employee (details of the case omitted) and bribery of non-state employees, and was sentenced to three years and six months in prison and a fine of RMB 200,000; his illegal gains were confiscated.

Ye was convicted of bribery of non-state officials and sentenced to three years in prison, suspended for four years, and fined RMB 200,000; his illegal gains were confiscated.

Bribing the Deputy Secretary General of the Municipal Government

Guan Moumou was an employee of H Securities Company at the time.

From 2010 to 2012, Guan, as the contractor of H Securities Company for the issuance of municipal bonds in P City, J Province, discussed with financial consultant Liu (handled in another case) to give Yi a benefit fee of RMB 600,000 from the financial consulting fees of RMB 1.89 million after the issuance of two phases of municipal bonds in P City, in order to thank Yi, then deputy secretary-general of the P Municipal Government and manager of the Municipal Investment, Construction and Development Co., Ltd., for his help during the issuance of municipal bonds. Liu then gave Yi a benefit fee of RMB 600,000 from the financial consulting fees of RMB 1.89 million.

In 2010, a real estate enterprise management company in M ​​City wanted to develop a tourist town and borrowed RMB 500 million from the Agricultural Development Bank of M City. In the same year, after being contacted by Pan (handled in another case), the director of the Financing Management Office of the Finance Bureau of M City at the time, Guan and Liu signed an agreement with a real estate enterprise management company in M ​​City in the name of a consulting company in H City, acting as a loan financial consultant and collecting relevant financial consultant fees. In July 2012, after paying the financial consultant fees of a real estate enterprise management company in M ​​City, Guan and Liu gave Pan RMB 40,000 to thank him for his help.

In this case, Guan violated state regulations in his economic dealings and gave property to state employees, which constituted the crime of bribery. In view of the fact that Guan voluntarily pleaded guilty during the trial, truthfully confessed the facts of the crime, and showed remorse, he was given a lighter punishment.

Guan was convicted of bribery and sentenced to two years and six months in prison, suspended for three years, and fined RMB 150,000.

Bribery of 3 million yuan for contracting bonds

Liu 1 was an employee of the Investment Banking Institutional Financing Department of Securities Company A at the time.

From the second half of 2015 to April 2016, when undertaking relevant bond issuance business, Liu XX1 promised to give a RMB 3 million commission to Wu, then the company's financial director and director of the financial and finance department, in order to exclude competition from other securities companies and successfully undertake the corporate bond issuance business of a certain industrial group company in T City (hereinafter referred to as "T City Group"). In December 2015, with the help of Wu and Huang, then the chairman of the T City Group (already sentenced), the T City Group failed to comply with the board of directors' approval procedures, and A Securities Company undertook the company's RMB 2 billion corporate bond issuance business at a higher underwriting fee than other securities companies. After the bond underwriting and issuance was successful, Liu XX1 gave Wu a total of RMB 3 million to fulfill his prior promise.

In this case, Liu Moumou 1 bribed state officials in order to obtain improper benefits, which was a serious crime. Liu Moumou 1 was convicted of bribery and sentenced to five years in prison and a fine of RMB 480,000.

Bribery of 2.45 million yuan to undertake listing business

Wang was the managing director of the investment banking department of E Securities Company at the time.

In early 2008, in order to undertake the overall listing business of Q Province P Group, Wang Moumou approached Wang Mou1, the then general manager of Q Province P Co., Ltd., for help and promised to thank him later.

In May 2008, Wang X1 decided that Wang X would represent E Securities Company to undertake the overall listing of P Group without following the relevant bidding procedures. In September of the same year, P Group and E Securities Company signed an independent financial advisory agreement of RMB 35 million. In the first half of 2009, in order to thank Wang X1 for his help in undertaking the independent financial advisory business for the overall listing of P Group, Wang X gave Wang X1 RMB 2.45 million in two installments.

In this case, Wang Moumou bribed a state official RMB 2.45 million in order to obtain improper benefits, which constituted the crime of bribery. Wang Moumou was convicted of bribery and sentenced to three years in prison, suspended for four years.

Source: China Securities

Statement: All information content of Databao does not constitute investment advice. The stock market is risky and investment should be cautious.

Editor: Lin Lifeng

Proofreading: Yang Lilin

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