yi wei manipulated "jinling sports" to make a profit of 83.34 million yuan, and was fined more than 166 million yuan by the china securities regulatory commission
2024-09-14
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administrative penalty decision of china securities regulatory commission (yi wei)
no. 89 (2024)
party: yi wei, male, born in november 1971, address: futian district, shenzhen city, guangdong province.
in accordance with the relevant provisions of the securities law of the people's republic of china (hereinafter referred to as the 2005 securities law), which was revised in 2005 and amended in 2014, our commission has filed a case against yi wei for manipulating "jinling sports" and informed the parties concerned of the facts, reasons, basis and rights they enjoy in accordance with the law for imposing administrative penalties. at the request of the parties concerned, our commission held a hearing and listened to the statements and defenses of the parties concerned and their agents. the investigation and handling of this case have now been concluded.
it was found that yi wei had committed the following illegal acts:
1. yi wei’s control over the use of securities accounts
from september 4, 2017 to april 18, 2019 (hereinafter referred to as the manipulation period), yi wei controlled the use of 39 securities accounts (hereinafter referred to as the account group) to trade "jinling sports" stocks.
2. manipulation of the “jinling sports” situation
during the manipulation period, yi wei controlled and used a group of accounts to influence the trading price and volume of "jinling sports" stocks and made a profit of 83,342,207.12 yuan.
(i) concentrate on capital advantages and shareholding advantages to continuously buy and sell
the manipulation period totaled 394 trading days. the account group participated in the transaction for 389 trading days, from september 4, 2017 to october 23, 2018 was the period of position building and lifting, and from october 24, 2018 to april 18, 2019 was the period of delivery.
during the manipulation period, the account group collectively bid to buy 39,424,306 shares of "jinling sports" for rmb 1,548,580,773.09. the market share of the buying volume on 240 trading days exceeded 10%, the market share of the buying volume on 141 trading days exceeded 20%, the market share of the buying volume on 64 trading days exceeded 30%, and the market share of the buying volume on 29 trading days exceeded 40%. the market share of the buying volume on 241 trading days ranked first. the total number of shares of "jinling sports" sold through bidding was rmb 1,555,490,412.73. the market share of the selling volume on 224 trading days exceeded 10%, the market share of the selling volume on 116 trading days exceeded 20%, the market share of the selling volume on 56 trading days exceeded 30%, the market share of the selling volume on 23 trading days exceeded 40%, and the market share of the selling volume on 227 trading days ranked first. from september 4, 2017 to april 18, 2019, the account group's shareholding ratio in the circulating shares was above 5% for 160 trading days, and the highest ratio of shareholding ratio in the circulating shares was 8.57% on october 23, 2018. in summary, the account group has advantages in funds and shareholding.
during the period of lifting from september 4, 2017 to october 23, 2018, the account group applied for a large number of purchases at a price not lower than the market's best offer price or the market price, accounting for an average of more than 30% of the total application volume of the account group in the same direction during the period. during the same period, the account group's buying volume accounted for an average of more than 20% of the market's transaction volume on 95 trading days, and more than 30% on 36 trading days. during the period of shipment from october 24, 2018 to april 18, 2019, the account group applied for a large number of sales at a price not higher than the market's best offer price or the market price, accounting for an average of more than 30% of the total application volume of the account group in the same direction during the period. during the same period, the account group's auction transaction volume accounted for more than 20% of the market's auction transaction volume on 62 trading days, and more than 30% on 34 trading days.
(ii) conducting securities transactions between accounts under one’s actual control
during the manipulation period, the account group traded between accounts under its actual control on 277 trading days. on 69 trading days, the arbitrage volume accounted for more than 10% of the market turnover, on 13 trading days, the arbitrage volume accounted for more than 20% of the market turnover, and on 5 trading days, the arbitrage volume accounted for more than 30% of the market turnover. on december 5, 2018, the arbitrage volume accounted for the highest proportion, reaching 34.29%.
3. false declaration
during the manipulation period, the account group made false declarations on a total of 6 trading days, with the buying volume accounting for more than 30% of the same-direction declarations in the market during the same period, and the order cancellation volume accounting for more than 50% of the total declarations in the same direction of the account group.
the above facts are sufficiently proven by evidence such as relevant securities account information, transaction records, relevant bank account information, bank statements and related vouchers, relevant personnel interrogation records, and relevant data provided by the exchange.
i believe that yi wei’s above-mentioned behavior violates the provisions of article 77, paragraph 1, items 1, 3 and 4 of the securities law of 2005, and constitutes the manipulation of the securities market as described in article 203 of the securities law of 2005.
during the hearing, the parties and their agents raised the following defense opinions:
first, yi wei traded the shares of "jinling sports" for legitimate investment purposes, did not seek illegal profits, and did not have the subjective intention to manipulate the securities market, which did not constitute market manipulation. second, there is a lack of standards for determining the manipulation of the securities market, and the determination result is wrong. third, the determination of the manipulation period and the end date of the manipulation behavior is wrong. fourth, there is a lack of evidence for the determination of the scope of the controlled accounts and the control period. fifth, there is insufficient evidence to determine that the transaction behavior in the case has produced harmful results. sixth, the manipulation behavior has exceeded the two-year administrative penalty period. seventh, the calculation result of the amount of illegal income is wrong.
in summary, the parties request no punishment or a lighter punishment.
upon review, i believe that:
first, yi wei not only controlled and used his own securities accounts and the securities accounts of the products he managed, but also borrowed other people's securities accounts and used three manipulation techniques in combination. during the period of the case, he repeatedly and massively traded "jinling sports", which was sufficient to prove that he had the intention to manipulate the stock price. how to distribute the illegal proceeds does not affect the determination of the manipulation of the securities market. second, i investigated and dealt with the illegal manipulation of the securities market in accordance with the securities law of 2005 and the interpretation of the supreme people's court and the supreme people's procuratorate on several issues concerning the application of laws in handling criminal cases of manipulating securities and futures markets, which is legally justified. third, the scope of the controlled accounts and the period of control are clear and the evidence is sufficient. fourth, the period of manipulation and the end date of the manipulation are correctly determined. fifth, yi wei's manipulation had a significant impact on the price of "jinling sports". during the period of the case, the stock price of "jinling sports" rose by 112.13%, while the corresponding sector index fell by 13.15% during the period, with a deviation of 125.27%. the impact of other market factors on the stock price cannot be used as a reason to exclude yi wei's behavior from manipulating the securities market. sixth, yi wei's manipulation of "jinling sports" ended on april 18, 2019. the relevant evidence is sufficient to prove that the time when i discovered the illegal clues in this case did not exceed the statute of limitations. seventh, the calculation result of the illegal income is correct, and the opinions of the parties have been partially adopted.
based on the facts, nature, circumstances and degree of social harm of the parties' illegal acts, and in accordance with article 203 of the securities law of 2005, i hereby decide:
the illegal gains of 83,342,207.12 yuan from yi wei were confiscated and a fine of 83,342,207.12 yuan was imposed.
the above-mentioned party shall remit the fines and confiscations to the bank where the china securities regulatory commission has opened an account: the business department of beijing branch of china citic bank, account number: 7111010189800000162 within 15 days from the date of receipt of this penalty decision, and the bank shall directly pay it to the state treasury, and send a copy of the payment voucher with the name of the party to the office of administrative penalty committee of the china securities regulatory commission for filing. if the party is dissatisfied with this penalty decision, it may apply to the china securities regulatory commission for administrative reconsideration within 60 days from the date of receipt of this penalty decision (the administrative reconsideration application can be sent to the rule of law department of the china securities regulatory commission by postal express), or directly file an administrative lawsuit with the people's court with jurisdiction within 6 months from the date of receipt of this penalty decision. the above decision shall not be suspended during the reconsideration and litigation.
china securities regulatory commission
august 26, 2024
