Recently, the CSRC announced a new batch of administrative punishment decisions, one of which points to Zheng Desheng, chairman of Junye investment. Zheng Desheng was fined 62.89 million yuan for manipulating A-Zenith Home Furnishings Co.Ltd(603389) , Hangzhou Nbond Nowovens Co.Ltd(603238) and Ningbo Shenglong Automotive Powertrain System Co.Ltd(603178) .
The details of stock price manipulation disclosed in the punishment decision attracted attention. Zheng Desheng borrowed accounts from intermediaries for capital allocation, finally controlled dozens of accounts, manipulated the stock price by various means, concentrated capital advantages and shareholding advantages for continuous trading, and adopted intraday reverse selling and reverse trading.
the chairman of private placement was fined for manipulating the share prices of three companies
According to the punishment decision, Zheng Desheng, the party concerned, was born in September 1983 and is the chairman of Jiangsu Junye Investment Co., Ltd. (hereinafter referred to as Junye investment).
the CSRC has investigated and tried Zheng Desheng’s manipulation of A-Zenith Home Furnishings Co.Ltd(603389) (hereinafter referred to as A-Zenith Home Furnishings Co.Ltd(603389) ), Hangzhou Nbond Nowovens Co.Ltd(603238) (hereinafter referred to as Hangzhou Nbond Nowovens Co.Ltd(603238) ) and Ningbo Shenglong Automotive Powertrain System Co.Ltd(603178) (hereinafter referred to as Ningbo Shenglong Automotive Powertrain System Co.Ltd(603178) ) stock prices in accordance with the law. The investigation and trial of the case have been concluded.
After investigation, Zheng Desheng allocated funds and borrowed multiple accounts from intermediaries. During the period from April 27, 2018 to September 28, 2018, Zheng Desheng actually controlled and used 55 securities accounts such as “long mouwei”. From December 21, 2018 to March 21, 2019, Zheng Desheng actually controlled and used 26 securities accounts such as “long mouwei”, of which 25 accounts traded ” Ningbo Shenglong Automotive Powertrain System Co.Ltd(603178) ” and 18 accounts traded ” Hangzhou Nbond Nowovens Co.Ltd(603238) “. Zheng Desheng manipulated the stock prices of A-Zenith Home Furnishings Co.Ltd(603389) , Hangzhou Nbond Nowovens Co.Ltd(603238) and Ningbo Shenglong Automotive Powertrain System Co.Ltd(603178) through various means.
The punishment decision pointed out that Zheng Desheng’s behavior violated the provisions of item 1 and item 3 of paragraph 1 of Article 77 of the securities law of 2005 and constituted the manipulation of the securities market described in article 203 of the securities law of 2005. According to the facts, nature, circumstances and degree of social harm of the parties’ illegal acts, and in accordance with Article 203 of the securities law of 2005, the CSRC decided to confiscate Zheng Desheng’s illegal income of 31443546.04 yuan and impose a fine of 31443546.04 yuan, totaling about 62.89 million yuan.
The Chinese reporter of the securities firm inquired about the publicity information of the China Fund Industry Association and found that Junye investment was established on August 17, 2014 and completed its registration on May 8, 2015. The registered capital of the company is 50 million yuan and the paid in capital is 12.5 million yuan. Business types include private securities investment funds and private securities investment fof funds. The number of full-time employees is only 4, and the management scale ranges from 0 to 500 million yuan.
There are also a number of tips about the company association, including “abnormal information submission”, “no fund under management in recent one year”, etc.
exposure of details of stock price manipulation
The punishment decision also disclosed the details of Zheng Desheng’s manipulation of the share prices of relevant companies.
take manipulating the stock price of Yazhen furniture as an example:
From April 27, 2018 to September 28, 2018, Zheng Desheng controlled the use of “long mouwei” and other 55 securities accounts (hereinafter referred to as the account group), traded continuously through the concentration of capital advantages and shareholding advantages, manipulated the stock price of ” A-Zenith Home Furnishings Co.Ltd(603389) ” by means of intraday lifting and reverse selling and reverse trading, and bought 26193943 shares in total, with a purchase amount of 320383017.75 yuan, 26193943 shares were sold in total, with a sales amount of 337782725.08 yuan and a profit of 17953446.57 yuan.
The manipulation period of has a total of 107 trading days, which can be divided into two periods:
(1) warehouse building and raising period: from April 27, 2018 to September 14, 2018, the account group bought 26075343 shares of ” A-Zenith Home Furnishings Co.Ltd(603389) ” through bidding and sold 8608243 shares through bidding. As of September 14, 17467100 ” A-Zenith Home Furnishings Co.Ltd(603389) ” shares were held, accounting for 7.98% of the total share capital and 27.74% of the circulating shares. During this period, the account group mainly built positions by buying, the shareholding increased one after another, and the share price increased, resulting in the rise of ” A-Zenith Home Furnishings Co.Ltd(603389) ” from 11.04 yuan / share to 16.60 yuan / share, an increase of 50.36%.
(2) position reduction period: from September 17, 2018 to September 28, 2018, the account group only bought 118600 shares of ” A-Zenith Home Furnishings Co.Ltd(603389) ” through bidding, and sold 17585700 shares through clearance bidding. A small number of purchases in the early stage of shipment continued to raise the share price from 16.60 yuan / share to the highest 17.44 yuan / share. After a large number of shipments, the share price fell for four consecutive limits, and finally fell to 10.56 yuan / share, down 36.39%.
specific means include:
(I) continuous trading with centralized capital advantages and shareholding advantages
During the manipulation period, the account group made use of the capital advantage to buy ” A-Zenith Home Furnishings Co.Ltd(603389) ” in a large number of bidding. There were bidding buying transactions in 84 of the 107 trading days, with a total purchase of 320.383 million yuan. Especially on September 14, 2018, the account group bought 1241400 ” A-Zenith Home Furnishings Co.Ltd(603389) ” shares through bidding, with a transaction amount of 20.7991 million yuan. The account group makes use of the capital advantage to buy a large number of shares, thus forming the shareholding advantage. Among them, the number of days in which the shareholding accounts for more than 10% of the total number of circulating shares of ” A-Zenith Home Furnishings Co.Ltd(603389) ” is 88 days, and the number of days in which the shareholding accounts for more than 20% is 68 days, with the highest proportion of 27.74%. After that, the account group slowly reduced its positions and continued to raise the share price to the highest point. Within seven days, it concentrated on selling the stock, resulting in a precipitous decline in the share price.
In the process of continuous trading with centralized capital advantage and shareholding advantage, the account group often applies for buying at a significantly higher market price, and repeatedly implements intraday lifting behavior, with the maximum lifting range of 3.54%, and there are reverse selling situations during and after lifting.
The punishment decision disclosed some typical stock price lifting periods. Taking June 19, 2018 as an example, the account group carried out lifting behavior from 14:56:09 to 14:57:13. The previous market transaction price was 10.60 yuan / share, and the market transaction price was 11.00 yuan / share at the end of the period, with a period increase of 3.54%. The account group declared to buy 99700 shares. During the period, the account group applied for purchase accounting for 71.42%. The minimum purchase price was 10.90 yuan / share, the maximum purchase price was 11.00 yuan / share, and the average purchase price was 10.93 yuan / share, which was not lower than the selling price. The purchase volume accounted for 100% of the total purchase volume of the account group. During the period, the account group actively bought 90200 shares, accounting for 86.81% of the market. The account group sold in reverse during the lifting process, including 253340 shares sold during the lifting, with an average selling price of 10.60 yuan / share, and 40700 shares sold after the lifting, with an average selling price of 10.66 yuan / share.
(II) transactions between accounts under their actual control
During the manipulation period, the account group has 31 trading days to trade ” A-Zenith Home Furnishings Co.Ltd(603389) ” between the securities accounts under its actual control. The number of days to trade accounts for 30.69% of the trading days, and the total number of shares to trade accounts for 2223528. The number of days to trade accounts for more than 5% of the trading volume of the market bidding on that day has 10 trading days and more than 10% has 3 trading days. On August 30, 2018, the proportion was the highest, reaching 21.19%.
