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Source: Time Weekly Author: Liang Chunfu

Zhang Jianping, known as "China's No. 1 individual investor", was fined 500,000 yuan by the China Securities Regulatory Commission for using other people's securities accounts to engage in securities trading. The China Securities Regulatory Commission announced the news on the evening of August 16. The person who lent the securities account was Zhang Jianping's father-in-law Fang Deji, who was also fined 500,000 yuan.

As one of the top speculators, Zhang Jianping's story of making a fortune has long been known to everyone. He entered the market with 50,000 yuan in the 1990s and created a myth of "his net worth increased 150 times in 5 years".Beichen Industry、China Merchants Steamshipas well asAluminum Corporation of ChinaMake a lot of money and become famous.

He has strong financial strength, does not "eat alone", often shows his cards and signals, and prefers to invest heavily in large-cap stocks during the main rising wave stage. However, he is extremely low-key and rarely accepts media interviews. This is the impression of Zhang Jianping in the market. Like most well-known hot money, Zhang Jianping also has a "family team" behind him. In addition to his father-in-law Fang Deji, there are his wife Fang Wenyan, mother-in-law Li Fengying, and Zhang Jianping's son Fang Zhangle. According to media investigations, in his early years, Zhang Jianping liked to trade stocks with his wife Fang Wenyan. However, Fang Wenyan actually did not understand stocks and only did some peripheral work for her husband in the trading room.

Several members of Zhang Jianping's family sometimes appear on the list of shareholders of listed companies individually, and sometimes hold shares in listed companies together. According to Private Equity Ranking Network, as of April 30, 2024, Zhang Jianping's family appeared on the shareholder list of three listed companies, with a total market value of 3.829 billion yuan. Among them, Zhang Jianping's family has newly entered two automobile companies.Changan Automobile(000625.SZ) andJAC Motors(600418.SH), all held by Fang Wenyan;Haili Biotechnology(603718.SH) holdings remain unchanged, with Zhang Jianping, Fang Zhangle, Fang Wenyan and Fang Deji holding 4.88%, 4.47%, 4.10% and 3.18% of the shares respectively.

Top speculators were punished to the maximum extent

Zhang Jianping was born in Lin'an, Hangzhou in 1966 and was active in a brokerage business department in Hangzhou in his early years. The ticket information shows that Zhang Jianping's father-in-law Fang Deji was born in November 1944 and is currently retired.

In accordance with the relevant provisions of the Securities Law, the CSRC has filed a case to investigate and hear the behavior of Zhang Jianping and Fang Deji in borrowing and lending securities accounts, and has informed the parties of the facts, reasons, basis and rights they enjoy in accordance with the law. The parties did not make any statements or defenses, nor did they request a hearing. The investigation and hearing of this case have now been concluded.

It was found that Zhang Jianping and Fang Deji committed the following illegal acts:

On July 15, 2014, Fang Deji opened a Guotai Junan Securities ordinary account at a Guotai Junan Securities branch. On the same day, Fang Deji opened a Guotai Junan Securities credit account at a Guotai Junan Securities branch.

From March 1, 2020 to October 27, 2023, Fang Deji lent the above-mentioned securities account to Zhang Jianping for use. Zhang Jianping used the above-mentioned securities account to engage in securities trading.

The above illegal facts are proved by the securities account information and transaction flow, bank account information and fund flow, and the interrogation records of relevant personnel. The CSRC believes that the above actions of Zhang Jianping and Fang Deji violate the provisions of Article 58 of the Securities Law and constitute the acts of borrowing other people's securities accounts and lending their own securities accounts as stipulated in Article 195 of the Securities Law.

Based on the facts, nature, circumstances and degree of social harm of the parties' illegal acts and in accordance with Article 195 of the Securities Law, the CSRC decided to order Zhang Jianping to correct his behavior, give him a warning, and impose a fine of 500,000 yuan; and to order Fang Deji to correct his behavior, give him a warning, and impose a fine of 500,000 yuan.

Regulators continue to crack down on account lending

The new Securities Law, which came into effect on March 1, 2020, clearly stipulates that no unit or individual may violate the regulations by lending out their own securities accounts or borrowing other people's securities accounts to engage in securities trading. Anyone who lends out their own securities accounts or borrows other people's securities accounts to engage in securities trading will be ordered to make corrections, given a warning, and may be fined up to 500,000 yuan.

On August 16, the CSRC also announced another fine for lending or borrowing other people's securities accounts, and the amount of the penalty was smaller than the previous case.

The penalty notice shows that, in accordance with the relevant provisions of the Securities Law, the CSRC has filed a case against Zhang Meng for using other people's securities accounts to engage in securities trading and Wang Lin, Zhou Yanxia, ​​Chen Lei, and Li Tingting for lending their own securities accounts, and has informed the parties of the facts, reasons, basis, and rights of the parties in accordance with the law. None of the parties made any statements or defenses, nor requested a hearing, and the investigation and handling of this case has been concluded.

The CSRC believes that the above-mentioned actions of Zhang Meng, Wang Lin, Zhou Yanxia, ​​Chen Lei and Li Tingting violated Article 58 of the Securities Law and constituted the acts of borrowing other people's securities accounts to engage in securities transactions and lending their own securities accounts as described in Article 195 of the Securities Law.

The CSRC decided to order Zhang Meng to make corrections, give him a warning, and impose a fine of RMB 300,000 for borrowing other people's securities accounts to engage in securities trading. Wang Lin, Zhou Yanxia, ​​Chen Lei, and Li Tingting were ordered to make corrections, given a warning, and fined RMB 30,000 each for lending their own securities accounts.

According to incomplete statistics from the Times Weekly reporter, since the implementation of the new Securities Law, more than 20 natural persons who lent out their accounts have been punished. Many of them were relatives who borrowed securities accounts and were punished to the maximum extent by the regulatory authorities. The above penalties also once again made it clear that even relatives are not allowed to lend out stock accounts for illegal activities.

Industry insiders remind that many of the existing illegal activities such as market manipulation and insider trading are carried out by borrowing other people's securities accounts in an attempt to evade supervision and punishment, disrupt the order of the securities market, and infringe on the legitimate rights and interests of the majority of investors. Securities investors should open securities accounts in accordance with the real-name system during securities trading, and may not lend their own securities accounts or borrow other people's securities accounts to buy and sell securities. Otherwise, they may not only face administrative penalties, but also be involved in civil disputes and suffer property losses, which will ultimately be counterproductive.