Chen Long, the former chief of Zhongtai Strategy, was arrested or suspected of manipulating securities

Reporter | Hu Yingjun

Interface News reporters learned from multiple sources that Chen Long, former chief analyst of strategy at Zhongtai Securities Research Institute, was arrested or suspected of manipulating securities and insider trading.

"In November last year, it is said that they had a small gang of more than 20 people, mainly joint floating funds and institutions to speculate on stocks, because of the speculation of Huawei's car concept stocks, was investigated." A person familiar with the matter told the interface news reporter.

According to the above-mentioned insiders, the news of Chen Long's arrest was once blocked, and the people in his group did not know it before, "Later, the analysts of their team learned that the chief could not come back." In January this year, the news of Chen Long's arrest began to ferment in the industry. ”

The interface news reporter searched Chen Long's previous securities number information in Zhongtai Securities and found that the registration number did not exist. A securities source said that his securities practice certificate may have been cancelled, and at present, the head of strategy of the Zhongtai Research Institute has been taken over by Xu Chi.

According to the data, Chen Long graduated from Peking University with a master's degree in economics and a bachelor's degree in management. With 9 years of experience in the securities industry, he has worked as a macro strategy analyst, senior strategist and fund manager at Dentons Fund Management Co., Ltd. and BOCOM Schroder Fund Management Co., Ltd. before joining Zhongtai Securities Co., Ltd. in March 2019.

Manipulating stock prices through vests in the name of so-called "market value management" has always been a key type of illegal crackdown by the CSRC, especially after the Ye Fei incident last year.

On May 9, 2021, a whistleblower tweet by Ye Fei unveiled the black box of pseudo-market value management. Two months later, the CSRC reported the progress of the investigation of stock price manipulation cases such as "Zhongyuan Home" and "Litong Electronics", and after investigation, from September 2020 to May 2021, Shi Mou and other manipulation gangs controlled dozens of securities accounts, and through continuous trading, confrontation and other illegal ways to pull up the stock price of "Zhongyuan Home" Litong Electronics, the transaction amount reached more than 3 billion yuan, and the relevant behaviors have reached the standard of criminal prosecution, suspected of constituting a market manipulation crime. The CSRC informed that it had seized a number of major cases of market manipulation with the public security organs, cooperated with the public security organs to carry out joint operations, and arrested Ye Fei, the main suspected criminal in the three cases of market manipulation, in one fell swoop.

At the same time, the CSRC also announced that it will rely on the joint research and judgment mechanism with the public security organs to rely on clues, combined with the monitoring and discovery of the exchange, to start a joint investigation of a number of vicious market manipulation cases in accordance with the law, and as a key case of the CSRC's special law enforcement action in 2021, it will concentrate on allocating forces, strengthening law enforcement coordination, and accelerating case breakthroughs.