Insider Trading Activities

[Randy W]

This has been in the news a lot over the last couple of weeks. The surge had originally been blamed on a programmed trading glitch.

 

Everbright Securities gets vast fine for insider trading

 

 

According to a statement by the China Securities Regulatory Commission (CSRC), the company's illegal gains of 87.21 million yuan earned from trading malpractice will be confiscated as part of the penalties. An additional fine of 436 million yuan will also be imposed.

"The CSRC chose the highest standard of fines, given the wide influence of the case," Yang Zhaoquan, a lawyer at Beijing Vlaw Law Firm, told the Global Times Friday.

China's Securities Law stipulates that insider trading activities can be fined up to five times the illegal gains.

 

. . .

 

This also came after trading in shares of this Shanghai-listed company was suspended on Friday, marking the third halt since a flurry of trades executed by the troubled brokerage firm set off a massive but short intraday surge of 5 percent on the benchmark Shanghai Composite Index on August 16.

The violations were identified as insider trading, disclosure of misleading information and other breaches against internal control regulations of securities companies, said the regulator.

The CSRC will also punish five employees responsible for the abnormal trading. Four of them will be fined 600,000 yuan each and banned from undertaking securities and futures business for life, while Mei Jian, secretary of Everbright's board of directors, will face a 200,000 yuan fine for misleading the public following the case.