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from brokerage china

another regulatory fine has arrived.

recently, the china securities regulatory commission disclosed a fine for manipulating stock prices. from february 21 to july 27, 2022, chen and qiu actually controlled 90 securities accounts through stock allocation and other methods. they concentrated on their capital advantages and shareholding advantages, and continuously traded "suzhou longjie". suzhou longjie" for manipulation.

in just five months, when the shanghai composite index fell 6.16%, the illegal income of the account group involved in the case controlled by chen and qiu was 9.79 million yuan. in the end, the illegal gains of chen and qiu were confiscated, and they were also fined 29.36 million yuan, for a total fine of approximately 39.15 million yuan.

manipulated 90 accounts and made nearly rmb 10 million in 5 months

recently, the china securities regulatory commission disclosed the details of a fine issued by a company chairman born in the 1980s and a general manager born in the 1970s for collaborating to manipulate stock prices.

according to reports, chen, who was born in 1984, and qiu, who was born in 1972, are respectively the chairman of beijing tianhong group and the general manager of suzhou yixinda investment management co., ltd. both of their addresses are in similar prefecture-level cities in jiangsu.

as found by the china securities regulatory commission, from february 21 to july 27, 2022, chen and qiu actually controlled 90 securities accounts (hereinafter referred to as the account group involved) including "bao moulin" through stock allocation and other methods, and traded "suzhou longjie". the two people fully controlled and used the account group involved in the case, concentrated their capital advantages and shareholding advantages, continuously traded "suzhou longjie" and manipulated "suzhou longjie".

it is reported that from february 21 to july 27, 2022, the account group involved bought a total of 2.712 billion yuan and sold 2.709 billion yuan.

during the manipulation period, the account group involved accounted for more than 5% of the total share capital on 92 trading days, reaching a maximum of 19.1%.

the account group involved in the case made a large number of purchases at a price not lower than the market selling price during the pull-up stage (march 21 to july 15, 2022). the account group's such declaration volume accounted for 42.26% of the total number of orders in the same direction of the account group during that period. %, and the trading volume of the account group accounted for 20.31% of the market trading volume during the same period. in addition, the account group involved in the case also implemented reverse transactions.

according to reports, during the manipulation period, the "suzhou longjie" rose by 12.47%, while the shanghai composite index fell by 6.16% during the same period. the former deviated from the latter by 18.63%. during the manipulation period, the account group involved in the case bought a total of 116 million shares and sold 121 million shares. the illegal income of the account group involved was 9.79 million yuan.

nearly 40 million yuan was fined and confiscated

the china securities regulatory commission stated that the above-mentioned illegal facts are proved by evidence such as securities account opening materials, inquiry transcripts, relevant agreements, chat records, bank statements, transaction records, mac addresses, etc., which are sufficient to determine that they constitute article 192 of the securities law. market manipulation behavior as described.

among them, chen and qiu divided labor and cooperated with each other in the process of manipulating "suzhou longjie", and were joint criminal subjects. among them, chen bears the main responsibility and qiu bears the secondary responsibility.

during the hearing, chen and qiu put forward their defense opinions, saying that the five accounts of "wang yi", "liang yi", "wu sui", "chen" and "pan" were not controlled by the parties involved, and the losses from the aforementioned accounts were deducted. finally, there was no illegal income in the account group in this case. in summary, the parties requested a reduction or reduction of punishment.

after reviewing the defense opinions of the two parties, the china securities regulatory commission believed that the parties concerned controlled the use of the aforementioned five accounts. first, the funds in the aforementioned five accounts all came from chen’s bank account. second, witness testimony, chat records and other evidence prove that the "wang mouyi" account is controlled and used by the party, the time of fund transfer and purchase is relatively consistent, the capital allocation characteristics are obvious, and there are transaction convergences with other accounts in the account group. third, the accounts of "liang mouyi", "wu mousui", "chen mou" and "pan mou" are related to other accounts in the account group by mac address, ip address, hard disk, etc. fourth, the relevant person (li) identified and controlled the use of the "pan" account. in summary, the china securities regulatory commission does not accept the opinions of the parties.

based on the facts, nature, circumstances and degree of social harm of the parties’ illegal acts, and in accordance with relevant legal provisions, the china securities regulatory commission decided to confiscate the illegal gains of 9.79 million yuan from chen and qiu, and impose a fine of 29.36 million yuan, for a total fine of approximately 39.15 million yuan. .

at the same time, the china securities regulatory commission believed that the illegal acts of the parties chen and qiu were serious, and decided to impose a five-year market ban on chen and a three-year market ban on qiu. from the day the china securities regulatory commission announced its decision starting from this period, during the ban period, except that they are not allowed to continue to engage in securities business or securities service business in the original institution or serve as directors, supervisors, or senior executives of the original securities issuer, they are also not allowed to engage in securities business or securities service business in any other institution. or serve as a director, supervisor or senior executive of other securities issuers.