Executives of listed companies have a new plot of illegal short-term trading!
On the evening of March 8, Arts Group Co.Ltd(603017) issued an announcement on the illegal trading of the company’s shares and apology of the company’s senior executives’ relatives. After self-examination, Li Zheng, the company’s deputy general manager, and his spouse, son and daughter-in-law joined the battle. The four accounts hyped the company’s shares wildly in the window periods such as the annual report and quarterly report. That night, Li Zheng resigned as deputy general manager of the company.
As of the afternoon of March 9, Arts Group Co.Ltd(603017) reported 9.14 yuan / share, down 0.76%, with a market value of 2.546 billion yuan.
a family of four illegally traded stocks
According to the announcement, after self-examination, Arts Group Co.Ltd(603017) found that the relatives of Li Zheng, the deputy general manager of the company, had the behavior of buying and selling stocks during the window period and buying and selling stocks of the company within 6 months. According to the provisions of the securities law and other relevant laws and regulations, Li Zheng’s relatives’ buying and selling company shares constitutes short-term trading.
According to the reduction plan announced in advance, Li Zheng sold 35000 shares of the company’s shares from July 12 to 13, 2021, with a total turnover of 365400 yuan and an average transaction price of 1044 yuan. However, it is puzzling that just one day after the reduction, Li Zheng bought 30000 shares of the company in three transactions, with an average transaction price of 10.43 yuan and a transaction amount of 312800 yuan.
While Li Zheng bought again, his spouse Zhang Haiwei and son Zhang Jiawei also bought at the same time. Among them, Zhang Haiwei’s account bought 8000 shares on July 13, 2021, and his son Zhang Jia’s account also bought 10000 shares on the same day. Consistent with the operation of Li Zheng’s account, the above two accounts are also bought quickly after selling.
Trading records show that as early as August to September 2017, Zhang Haiwei and Zhang Jia had traded the company’s shares for many times. When transactions are most frequent, the transaction amount in half a month exceeds 6 million yuan.
frequently traded company shares
Moreover, Wu Weitong, Zhang Jia’s spouse, also joined the family investment camp.
The announcement shows that Wu Weitong’s account has traded the company’s shares for many times from September 21, 2017 to November 18, 2021, of which the sales amount from May 11 to August 25, 2020 is as high as about 6.5 million yuan.
Not only a family of four trades in turns, but also what shareholders can’t understand is that the operation styles of the above four accounts are surprisingly consistent. They are fast in and fast out. Individual accounts even trade many times in a day, and the number of transactions in half a month is up to dozens.
According to the transaction records, the number of transactions in Wu Weitong’s account reached 128 from July 9 to November 16, 2021. From August 30, 2017 to September 22, 2017, the number of transactions in Zhang Haiwei’s account reached 45, with a transaction amount of more than 6 million yuan.
company executives resign voluntarily
For the above illegal trading acts, Arts Group Co.Ltd(603017) said that it would recover Li Zheng and his immediate family members according to relevant regulations, which constituted the income part of short-term trading.
The announcement also said that Li Zheng, who has been stationed in Xi’an for a long time, deeply blamed himself for failing to fulfill his obligation of supervision in time, and sincerely apologized to the majority of investors for the adverse impact on the company and the market.
Li Zheng also promised that he did not actually control the securities accounts of himself and his immediate family members Zhang Haiwei, Zhang Jia and his daughter-in-law Wu Weitong, and there was no capital transaction constituting the above-mentioned trading behavior, no trading of the company’s shares for benefits due to learning of inside information, and no purpose of seeking benefits by using short-term trading.
According to the announcement, Li Zheng proposed to resign from the post of deputy general manager of the company on March 8. According to the articles of association and relevant laws and regulations, his resignation takes effect when the resignation report is delivered to the board of directors.
