The housewife's sister learned the inside information through her sister who was a director of the company. She made more than 150000 yuan in short-term trading. Finally, she was confiscated of 155700 yuan of illegal income and fined 500000 yuan.
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 Qinghai Huading Industrial Co.Ltd(600243) (hereinafter referred to as St Haihua)
source: Gansu securities regulatory bureau website
by being the sister of the company's director
get inside information
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. She made a profit of more than 150000 yuan from short-term trading. After the incident, she begged to reduce the punishment on the grounds that she was a housewife and had a heavy family burden. Finally, Gansu securities regulatory bureau made a decision: adhere to the combination of punishment and education, confiscate Wang Dongmei's illegal income of 155700 yuan, and reduce the fine from 550000 yuan to 500000 yuan.
According to the investigation of Gansu securities regulatory bureau, on November 17, 2016, the former largest shareholder of St Haihua Qinghai Heavy Machine Tool Co., Ltd. (hereinafter referred to as "Qinghai heavy") pledged 41.3 million non tradable shares of St Haihua to China Securities Co.Ltd(601066) Co., Ltd. for a period of three years. During this period, if the financing period is overdue, Qinghai heavy will face the risk of being sued and the Pledged Shares will be auctioned. 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, in the name of the controlling shareholder Qinghai Yifeng Technology Investment Co., Ltd., 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 shares of St Haihua to lianshun technology. From June 9, 2020 to June 12, 2020, Yu Yiguang informed Wang moumei, who was then the director of St Haihua and Qinghai heavy, to participate in the relevant meetings of share transfer; According to the resolution of the extraordinary shareholders' meeting, Qinghai heavy transferred its st Haihua shares to lianshun technology. On June 13, 2020, St Haihua issued a suggestive announcement. After the equity transfer is completed, lianshun technology will become the largest shareholder of St Haihua.
Gansu Securities Regulatory Bureau determined that Qinghai heavy transferred its 52 million shares of St Haihua (accounting for 11.85% of the total share capital of St Haihua) to lianshun technology, resulting in the change of the largest shareholder of St Haihua from Qinghai heavy to lianshun technology, which belongs to the situation of "important change in the equity structure of the company", The major events that constitute the provisions of Item 9, paragraph 2, Article 80 of the securities law belong to the insider information specified in paragraph 2, Article 52 of the securities law. The inside information shall be formed no later than June 2, 2020 and made public after St Haihua's announcement on June 13, 2020. At that time, Wang moumei was a director of St Haihua and Qinghai heavy, who was a legal insider. She understood the progress of Qinghai heavy's seeking to transfer shares. On June 9, 2020, the chairman of Qinghai heavy notified Wang moumei by telephone to attend relevant meetings in Guangzhou, and Wang moumei knew the inside information.
According to the survey, Wang Dongmei is Wang moumei's sister. They have lived up and down the same building for a long time. They are in daily contact and have each other's home keys. Wang Dongmei and Wang moumei had economic contacts for many times, and there was 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
source: Gansu securities regulatory bureau website
From June 9, 2020 to June 11, 2020, before Wang moumei's business trip, Wang moumei and Wang Dongmei lived at home. On June 9, 2020, the two had contact. On the evening of June 10, 2020, Wang Dongmei had telephone contact with Wang moumei twice.
short term profit exceeds 150000 yuan
The information shows that from June 10 to June 12, 2020, Wang Dongmei used her own securities account to buy 193800 shares of St Haihua, with a transaction amount of 50200 yuan. All of them were sold on June 18, 2020, with an actual profit of 73700 yuan; Using her husband's securities account, she bought 250500 shares of St Haihua, with a transaction amount of 648100 yuan. All of them were sold on June 18, 2020, with an actual profit of 82000 yuan.
Wang Dongmei has a close relationship with insider Wang moumei. She has contact with Wang moumei during the sensitive period of insider information. Her behavior of trading st Haihua during the sensitive period of insider information is obviously abnormal, and she cannot make reasonable explanation or provide evidence to exclude her from insider trading. Gansu securities regulatory bureau will not accept Wang Dongmei's statement and defense.
In addition, 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. Combined with the specific circumstances of the case and the personal and family situation of the party Wang Dongmei, and based on the principle of "adhering to the combination of punishment and education", Gansu securities regulatory bureau decided to reduce the amount of fine imposed on Wang Dongmei as appropriate.
Gansu Securities Regulatory Bureau believes that Wang Dongmei's trading behavior is obviously abnormal. The above behavior violates the provisions of Article 50 and paragraph 1 of Article 53 of the securities law and constitutes the insider trading behavior mentioned in paragraph 1 of Article 191 of the securities law. According to the facts, nature, circumstances and degree of social harm of the party's illegal act, and in accordance with the provisions of paragraph 1 of Article 191 of the securities law, Gansu securities regulatory bureau decided to confiscate Wang Dongmei's illegal income of 155800 yuan and impose a fine of 500000 yuan.
