news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

he was once hailed as a stock god, but now he has become the target of investors' rights protection claims.

on september 4, the news of the first-instance judgment of former "private equity king" xu xiang's claim for compensation spread throughout the market. according to the court's first-instance judgment, xu xiang and others were ordered to pay a total of 1.1 million yuan in compensation for market manipulation.

according to xinhua finance, there are four natural person plaintiffs in this case. the defendants include xu xiang, xu changjiang, who was the chairman of wenfeng co., ltd. at the time, and wenfeng co., ltd. the four plaintiffs filed claims for compensation for investment losses ranging from 70,000 yuan to 580,000 yuan.

based on the fact that xu xiang and xu changjiang had previously been criminally punished for manipulating the securities market, and the administrative penalty imposed on wenfeng shares for illegal information disclosure, the court determined that xu xiang, xu changjiang, and wenfeng shares had jointly manipulated the securities market, and should jointly bear civil liability for investors' losses.

the first-instance judgment showed that xu xiang and xu changjiang had to pay a total of 1.1 million yuan to four investors. wenfeng shares were jointly liable for compensation. wenfeng shares could seek compensation from xu xiang and xu changjiang after actually assuming the responsibility.

according to the judgment, the court determined that the trading of wenfeng shares between december 23, 2014, the start date of the manipulation, and may 27, 2015, the date when the impact was eliminated, was causally related to the manipulation of the securities trading market involved in the case. therefore, investors who suffered losses during this period can seek legal redress.

reporters learned that the first verdict against xu xiang and others for insider trading in wenfeng shares was issued yesterday (september 3). according to convention, any behavior that clearly involves stock price manipulation within a certain period of time and investors who have suffered losses during the period can file a claim. this means that potential investors may file a large-scale lawsuit against xu xiang in the future.

according to the verdict, xu xiang did not attend, did not submit a written defense, and did not even hire a lawyer. a person close to him revealed that xu xiang was absent without reason, and no lawyer of xu xiang was present at the scene. therefore, the court made a default judgment.

xu xiang, the former head of the ningbo death squad, was arrested on november 1, 2015 at the ningbo hangzhou bay bridge and served a sentence of 5 years and 6 months. after being released from prison on july 9, 2021, he disappeared from the public eye. although news of his divorce from his wife ying ying was reported from time to time, he never appeared in the public eye. in the face of the investor lawsuit, he also chose to remain "invisible".

some market insiders lamented: the halo of the stock god has completely fallen.

the stock price manipulation method was exposed, and xu xiang and others were required to pay 1.1 million yuan in compensation

the market manipulation by xu xiang and others has been found out in the qingdao intermediate court in 2016. according to the previous judgment, xu xiang and xu changjiang conspired to manipulate the stock market. in order to realize the purpose of xu xiang and xu changjiang to cash out at a high price, wenfeng shares cooperated with the two to release important information that affected the stock trading price many times during the period of manipulating the stock market.

how did xu xiang and others manipulate the stock price to illegally reduce holdings and cash out?

from october to december 2014, xu changjiang wanted to reduce his holdings of wenfeng group and the shares of wenfeng new youfei hotel held by him, and he conspired with xu xiang on several occasions to agree:

xu xiang was first responsible for the stock price in the secondary market and took over the stocks that xu changjiang sold through block transactions. xu changjiang transferred part of the equity of wenfeng shares to xu xiang, and controlled wenfeng shares to release information such as equity transfer and "high dividend and bonus", so as to jointly raise the stock price and realize cash out by selling shares at a high level. the minimum price for selling shares was 14 yuan, and the excess was divided equally between the two parties.

according to the agreement, on december 20, 2014, xu xiang signed an equity transfer agreement with wenfeng group in the name of his mother zheng suzhen, purchasing the group's 14.88% equity in wenfeng. on february 28, 2015, the company disclosed a profit distribution plan of 15 additional shares for every 10 shares held by all shareholders and a cash dividend of 3.6 yuan. at the same time, it disclosed the information on the equity transfer agreement and transfer registration signed with zheng suzhen.

from april 7 to may 13, 2015, xu changjiang reduced his holdings of 454 million shares of wenfeng shares through block trading, and xu xiang used other people's securities accounts to take over and sell all of them in the secondary market. from december 23, 2014 to may 13, 2015, xu xiang used the account group to continuously buy and sell wenfeng shares through competitive bidding, buying a total of 22.74 million shares and selling 22.74 million shares.

final,xu changjiang sold off his holdings and cashed out 6.762 billion yuan, made a profit of 5.149 billion yuan, paid 1.741 billion yuan in taxes, and obtained illegal income of 3.408 billion yuan (including more than 1 billion yuan in share of the profits that should have been paid to xu xiang according to the agreement but have not yet been paid).

the nanjing intermediate people's court held that the behavior of manipulating the securities trading market began on december 23, 2014 and ended on may 13, 2015. during this period, xu xiang, xu changjiang and wenfeng co., ltd. constituted joint infringement and should bear joint and several liability for investors' losses.

the nanjing intermediate people's court ruled in the first instance that xu xiang and xu changjiang must pay compensation of 53,800 yuan, 869,700 yuan, 182,800 yuan and 6,332.92 yuan to the four plaintiffs respectively within ten days from the date when the judgment takes effect, totaling 1.1 million yuan.

as of press time, wenfeng co., ltd. has not made any announcement regarding this matter.

industry: investors who suffered during the period of stock price manipulation can claim compensation

in fact, in the case of xu xiang alone, there are more than just the four victims mentioned above. according to the trial information of xu xiang in 2016,from 2010 to 2015, xu xiang actually controlled 139 securities accounts involving 76 individuals and one partnership. alone or in collusion with others, he worked with the chairmen or actual controllers of 13 listed companies to use or create favorable news, raise stock prices, buy at low prices through block transactions, and then sell them to make profits.

by manipulating stock prices and other behaviors, the profit-making shareholders and xu xiang and others shared the profits according to the agreed ratio. in the end, after the court trial, xu xiang's illegal profits amounted to 9.338 billion yuan. xu xiang was also sentenced to 5 years and 6 months in prison for manipulating the securities market in 2017.

starting from the legend of "raising 30,000 yuan of capital to 21 billion yuan", from hot money to private equity, xu xiang once attracted much attention from the market for his high-profile and aggressive style, with large inflows and outflows in a short period of time. his company zexi investment took the top three places among the 491 private equity funds with continuous performance records from 2011 to 2014.

behind the leader of the "suicide squad" are insider trading involving 13 listed companies and countless victimized investors. in the industry's view, this verdict on wenfeng co., ltd. has lifted the lid on investors' pursuit of compensation, and the verdict reflects the protection of the rights and interests of small and medium-sized investors. in the future, more investors may join in the claims involving insider trading and stock price manipulation.