On February 8, Gansu Securities Regulatory Bureau issued the punishment Letter No. 1 of 2022, which made the final punishment for Wang Dongmei’s insider trading of Qinghai Huading Industrial Co.Ltd(600243) (hereinafter referred to as St Haihua). According to the punishment letter, Wang Dongmei learned the inside information about St Haihua through her sister Wang moumei, who was a director of the company. The profit from short-term trading exceeded 150000 yuan. After the incident, Wang Dongmei begged to reduce the punishment on the grounds that she was a housewife and had a heavy family burden.
Finally, Gansu Bureau made a decision: insist on the combination of punishment and education, confiscate Wang Dongmei’s illegal income of 155700 yuan, and reduce the amount of fine from 550000 yuan to 500000 yuan.
origin: Qinghai Huading Industrial Co.Ltd(600243) the original the first largest shareholder pledged to the edge of default
St Haihua, or Qinghai Huading Industrial Co.Ltd(600243) , is an old stock listed in 2000. Due to poor operation, Qinghai Huading Industrial Co.Ltd(600243) was once by St, but last May, St Haihua successfully “took off its hat” and restored its original name. This sister cheated her sister’s insider trading case, which took place during st Haihua period.
On November 17, 2016, Qinghai Heavy Machine Tool Co., Ltd. (the former largest shareholder of St Haihua, hereinafter referred to as Qinghai heavy) pledged its 41.3 million non tradable shares of St Haihua to China Securities Co.Ltd(601066) Co., Ltd. for a period of three years. After that, the A-share market was adjusted, and the liquidity of Qinghai Heavy Machinery Co., Ltd. was in trouble.
After consultation with China Securities Co.Ltd(601066) , the financing period of Qinghai heavy will be finally extended to June 15, 2020. If it is overdue, Qinghai heavy will face the risk of being sued and the Pledged Shares will be auctioned.
To this end, Qinghai heavy has been looking for the transferee in many ways and plans to solve the problem through the transfer of equity.
On June 2, 2020, before the expiration of the financing period, Yu Yiguang, chairman of Qinghai heavy duty, signed a confidentiality agreement with Guangzhou lianshun Technology Development Co., Ltd. (hereinafter referred to as lianshun Technology) on the transfer of 52 million non tradable shares of St Haihua held by Qinghai heavy duty (accounting for 11.85% of the total share capital of St Haihua) to lianshun technology.
Wang Dongmei’s sister Wang moumei is the director of St Haihua and Qinghai heavy. On June 9, 2020, the chairman Yu Yiguang informed Wang moumei to go to Guangzhou to attend the meeting related to the above-mentioned share transfer. On June 12, 2020, Qinghai heavy held an extraordinary shareholders’ meeting and decided to transfer 52 million shares of St Haihua held by Qinghai heavy to lianshun technology.
On June 13, 2020, St Haihua issued a suggestive announcement on the change of shareholders’ equity and the change of the largest shareholder, saying that after the equity transfer is completed, lianshun technology will become the largest shareholder of St Haihua.
the parties buy for three consecutive days, and even buy back the funds raised by securities lending in advance
According to the identification of Gansu securities regulatory bureau, Wang Dongmei and Wang moumei have lived up and down the same building for a long time, have daily contact and have each other’s home keys; Wang Dongmei and Wang moumei have economic contacts for many times, and there is a single loan of more than 100000 yuan; Wang Dongmei has long operated the securities accounts of Wang moumei and Wang moumei’s spouse Wu to purchase new shares and buy and sell stocks for Wang moumei and her spouse Wu.
From June 9, 2020 to June 11, 2020, Wang moumei went to Guangzhou on business. Gansu securities regulatory bureau pointed out that on June 9, 2020, Wang moumei had contact with Wang Dongmei’s sisters; On the evening of June 10, 2020, Wang Dongmei and Wang moumei had two more phone calls.
From June 10 to June 12, 2020, Wang Dongmei used her own account to buy 193800 shares of “St Haihua”, with a transaction amount of 500100 yuan. All of them were sold on June 18, 2020, with an actual profit of 73732.45 yuan.
In addition, Wang Dongmei’s husband “Li Moulin” securities account purchased 250500 shares of “St Haihua” from June 10 to June 12, 2020, with a transaction amount of 648100 yuan. All of them were sold on June 18, 2020, with an actual profit of 82023.59 yuan.
Gansu securities regulatory bureau pointed out that the transaction time point of Wang Dongmei’s account group is highly consistent with the contact time point of Wang Dongmei and Wang moumei. Moreover, there are various signs that Wang Dongmei’s operation belongs to insider trading: for example, Wang Dongmei operated the “Li Moulin” securities account, completed a 91 day quoted securities lending of 300000 yuan, bought back in advance, sold 20000 ” Focus Media Information Technology Co.Ltd(002027) ” shares held in the account, and most of the funds bought st Haihua on June 10; During the operation of my account purchase, there was also a case of continuous bank securities transfer into fund purchase.
Wang Dongmei pleaded and made a complaint, but Gansu securities regulatory bureau pointed out that Wang Dongmei had a close relationship with insider Wang moumei and had contact with Wang moumei during the sensitive period of insider information. His behavior of trading “St Haihua” during the sensitive period of insider information was obviously abnormal, and he could not make a reasonable explanation or provide evidence to exclude him from insider trading, “Our bureau will not accept Wang Dongmei’s statement and defense.”.
However, Gansu securities regulatory bureau also stressed that during the hearing, Wang Dongmei and her agent proposed that Wang Dongmei was a full-time housewife, her husband was injured and was in the stage of rehabilitation, her children were in school, and the fine of 550000 yuan seriously exceeded Wang Dongmei’s economic level, which was obviously too heavy. Therefore, in combination with the specific circumstances of the case and the personal and family situation of the party Wang Dongmei, starting from the principle of “adhering to the combination of punishment and education”, our bureau decides to reduce the amount of fine imposed on Wang Dongmei as appropriate “.
Finally, Gansu securities regulatory bureau decided to confiscate Wang Dongmei’s illegal income of 155756.04 yuan and impose a fine of 500000 yuan – that is, a fine of 50000 yuan was reduced.
