Recently, a punishment information released by the Beijing Securities Regulatory Bureau showed that Li Jinghai learned the inside information from his friend, who was then the chairman of Beijing Haidian District State owned assets investment and Management Co., Ltd. (hereinafter referred to as Haidian Guotou), and then used his own and his wife’s securities account to invest 23.67 million yuan to buy shares, with a cumulative profit of 4.7394 million yuan. Finally, the supervisor took the initiative, and Li Jinghai was fined three times without one, with a cumulative fine of 18.9575 million yuan.
involves Beijing Cuiwei Tower Co.Ltd(603123) acquisition of Haike financing
We have to start with an acquisition.
On October 8, 2019, Liu, then general manager of Haidian SDIC, Liu, then general manager of Beijing Haidian Technology Development Co., Ltd. (hereinafter referred to as Haidian Technology), Kuang, then chairman of Beijing Cuiwei Tower Co.Ltd(603123) and Meng, then general manager of Haike RONGTONG, held a meeting to preliminarily discuss the scheme of Beijing Cuiwei Tower Co.Ltd(603123) acquisition of Haike RONGTONG project.
Everything is going well.
On November 7, 2019, the relevant personnel of the above four companies further agreed on the transaction plan, discussed important problems and solutions, discussed the application for suspension, and held an intermediary coordination meeting the next day to discuss important issues. On the same day, Beijing Cuiwei Tower Co.Ltd(603123) issued a suspension notice of major asset restructuring, saying that the company planned to purchase the equity held by existing shareholders of Haike financing by issuing shares and paying cash.
Beijing securities regulatory bureau pointed out that Beijing Cuiwei Tower Co.Ltd(603123) the proposed acquisition of Haike financing belongs to the “major investment behavior and major property purchase decision of the company” stipulated in Item 2, paragraph 2, Article 67 of the securities law of 2005, and constitutes the insider information mentioned in Item 1, paragraph 2, Article 75 of the securities law of 2005 before it is made public. The inside information shall be formed no later than October 8, 2019 and disclosed on November 8, 2019.
chairman friend Hao threw more than 20 million to buy shares
Lin, the key person in this case, was the then chairman of Haidian SDIC. Liu, then general manager of Haidian SDIC, 1 attended the meeting held on October 8, 2019 and reported the meeting to Lin, then chairman of Haidian SDIC on October 9. Since then, Lin attended the meetings held on November 1 and November 7, 2019. Lin is an insider of the case and knows the inside information of the case no later than October 9, 2019.
During the sensitive period of inside information, Li Jinghai and Lin had four calls, and the two had two calls on October 17, 2019. They talked once on October 29. They talked once on October 31.
On October 29, 2019, Li Jinghai bought 292200 ” Beijing Cuiwei Tower Co.Ltd(603123) ” shares for the first time, with a transaction amount of RMB 1933300. The purchase funds came from the funds from selling other shares. On January 21, 2020, it sold all ” Beijing Cuiwei Tower Co.Ltd(603123) ” and made a profit of 272800 yuan.
Li Jinghai also used his wife’s account to buy, and the purchase amount was huge. On October 17, 2019, Li Jinghai communicated with insider Lin. on the next day, under the arrangement of Li Jinghai, a huge amount of money was transferred to his wife “Feng” securities account, and began to buy ” Beijing Cuiwei Tower Co.Ltd(603123) ” intensively on the same day. The trading amount and trading volume were significantly enlarged.
From October 18 to November 4, 2019, his wife’s securities account purchased a total of 3.3409 million ” Beijing Cuiwei Tower Co.Ltd(603123) ” shares, with a transaction amount of 21.7387 million yuan. On November 22, 2019, after Beijing Cuiwei Tower Co.Ltd(603123) resumed trading, the account successively sold ” Beijing Cuiwei Tower Co.Ltd(603123) ” and made a profit of 4.4665 million yuan.
On the disk, after Beijing Cuiwei Tower Co.Ltd(603123) resumed trading on November 22, 2019, the company’s share price rose by the limit to close at 7.67 yuan / share. During the period from buying to selling with Li Jinghai’s wife’s account, the share price of Beijing Cuiwei Tower Co.Ltd(603123) rose as high as 31.34% within 26 working days.
no one will be fined three
a total of 18.9575 million yuan was confiscated
Beijing securities regulatory bureau pointed out that Li Jinghai communicated with insider Lin before the disclosure of insider information. His securities trading activities were highly consistent with the insider information, and the relevant trading behavior was obviously abnormal. He violated the provisions of Article 73 and paragraph 1 of Article 76 of the securities law of 2005, which constituted insider trading.
In the defense materials and hearing, the parties proposed that the acquisition project involved in the case was only in the initial contact stage on October 8, 2019, and the insider information was not formed at that time. The contents of his four calls with Lin did not involve inside information at all, and he did not know the inside information at that time. In addition, it said that Beijing Cuiwei Tower Co.Ltd(603123) has good fundamentals, high net assets but low stock price. The parties have always been optimistic about Beijing Cuiwei Tower Co.Ltd(603123) . Its trading behavior has legitimate and reasonable reasons, conforms to the usual trading habits, has no abnormal characteristics, and is not consistent with the formation and change of insider information. At the same time, he proposed that the inspection file of this case only retained the transcripts of the parties’ first inquiry, and the investigation procedure was flawed. In conclusion, Li Jinghai requested no punishment.
After review, Beijing Securities Regulatory Bureau believes that October 8, 2019 is the initial time for motions, plans or decisions affecting the formation of insider information, and it is the time for the formation of insider information. The evidential materials provided by the parties are not enough to prove that the contents of their calls with insiders do not involve insider information, and are not enough to exclude them from using insider information to engage in transactions, nor do they constitute a legitimate reason or a legitimate source of information for relevant transactions. Moreover, the relevant trading behaviors of the parties are highly consistent with the insider information, which is obviously abnormal.
In response to the defects of the investigation procedure raised by Li Jinghai, the Beijing securities regulatory bureau pointed out that the investigators in this case inquired the parties according to law and performed the relevant investigation procedures without defects.
In conclusion, the defense opinions of the parties are not accepted.
According to the facts, nature, circumstances and degree of social harm of the parties’ illegal acts, and in accordance with Article 202 of the securities law of 2005, Beijing Securities Regulatory Bureau decided to confiscate Li Jinghai’s illegal income of 4.7394 million yuan and impose a fine of 14.2191 million yuan, with a cumulative fine of 18.9575 million yuan.
(source: China Fund News)
