"He flees, he chases, he can't fly with his wings"
Author | Han Ling Cai Zhen
Editor 丨 Cai Zhen
Source | Mustang Finance
At the end of the Spring Festival holiday, the capital market has entered the daily track, and new stories are constantly being staged here.
In the previous two years, Mustang Finance has done an annual "prison storm" inventory of A-shares, exploring the reasons and lessons of capital tycoons who have violated the law and taken risks.
Looking back at the A-share capital market in 2021, according to incomplete statistics, since January 1, 2021, as of the Lunar New Year in 2022, the actual controllers, chairmen or executives of 21 listed companies have been imprisoned or investigated, of which nearly half of the big guys involved in insider trading and securities market manipulation have been investigated.
Ye Lin, a professor at the Law School of Chinese Min University, said that compared with the previous blatant market manipulation cases, the form of market manipulation cases is now more diversified, and market manipulation can be carried out through various technical means, such as the use of procedural trading names. Therefore, it is necessary for the CSRC to vigorously rectify such cases.
Judging from the stock price reactions of relevant listed companies, under the influence of such black swan events, most of the company's "number one" accidents, the stock prices have shown a downward trend. Among them, the largest stock price change during the trading days before and after the "incident" announcement was Huabao shares, with a decline of 28.95%.
However, in order to gain a world in the highly competitive capital market, capital tycoons began to "find another way" and even chose to take risks against the constraints of ethics and law to grow the company. However, it is obvious that in the face of the country's stricter regulatory policies and laws, these capital tycoons who have touched the bottom line have long been doomed.
List below:
Mustang Financial Mapping
Case of manipulating the securities market: The founder was criminally detained before the "world first" could be achieved
Open Win Technology (300457. SZ) official website, as the screen scrolls into view is the company's Slogan: "Either don't do it, do it and do it to be the world's first." However, before the goal was achieved, the company's founders were detained and investigated.
Source: WinHe Technology official website
On March 4, 2021, Yinghe Technology issued an announcement that ceo Wang Weidong was investigated by the CSRC for suspected manipulation of the securities market. And said that "this" investigation is a personal investigation of Wang Weidong, therefore, the company's daily business activities are not affected.
According to the previous announcement of Yinghe Technology, Wang Weidong, the chairman of the company, was also detained by the public security organs on January 15, 2021 for suspected of manipulating the securities and futures markets.
Subsequently, Yinghe Technology responded that Wang Weidong's criminal detention would not have a significant impact on the company's daily business activities. On the third day after Wang Weidong's criminal detention, the company urgently re-elected director Wang Qingdong as the new chairman.
Although the company announced that Wang Weidong was detained on January 15, the stock price of Yinghe Technology fell sharply on January 15, the day Wang Weidong was detained, falling by 19.99%, the largest decline in the year.
On the same day, the stock bar of Win He Technology exploded. Seeing the sharp drop in stocks, a large number of shareholders were instantly blindfolded and asked what happened. According to the announcement of Yinghe Technology, as of December 31, 2020, the company had a total of about 21,000 shareholders.
Source: Oriental Wealth
WinHe Technology is a company dedicated to new energy intelligent equipment. It has been 16 years since its establishment in 2006. In 2015, after the listing of Yinghe Technology on the ChiNext board of the Shenzhen Stock Exchange, its performance continued to grow rapidly. According to the latest announcement, Yinghe Technology expects to make a profit of 270 million to 330 million yuan for the whole year of 2021.
In 2019, Yinghe Technology introduced Shanghai Electric as its controlling shareholder, and Wang Weidong was the second largest shareholder of Yinghe Technology, holding 17.2% of the company's shares.
Four months after Wang Weidong was investigated, Shanghai Electric, the majority shareholder of Yinghe Technology, also experienced "turmoil".
On July 28, 2021, Shanghai Electric issued an announcement that Zheng Jianhua, chairman and chief executive officer and legal representative of the company, was suspected of serious violations of discipline and laws and is currently under disciplinary review and supervision investigation.
Eight days later, Shanghai Electric announced again that Huang Ou, executive director and president of the company, died on August 5, 2021.
Successive news "bombardment" triggered an "uproar" in the market. In addition to the lamentation of the "fall" of executives, it also makes related companies deeply involved in a crisis of public opinion.
Unit bribery case: The actual controller was reported to be bribed by his niece, and Baoli International's 5-year "family infighting" was not over
In November last year, Zhou Dehong, the actual controller of Baoli International, was sentenced after 10 months of detention.
On November 18, 2021, Baoli International (300135.SZ) issued an announcement that the company and one of its actual controllers, Zhou Dehong, were guilty of bribery by the unit. Among them, the company was sentenced to a fine of 2.5 million yuan, and Zhou Dehong was sentenced to two years and six months in prison and fined 500,000 yuan.
Baoli International said that for this judgment, the company and Zhou Dehong will appeal within the appeal period.
On January 4, 2021, Zhou Dehong was criminally detained by the procuratorate on suspicion of bribery by the unit. Therefore, it was announced that he resigned from all positions such as chairman of the company, and his post-90s son Zhou Wenbin took up the position of the new chairman of the company, but Zhou Dehong was still the actual controller of Baoli International.
It is worth noting that after the announcement on the evening of January 4 that chairman Zhou Dehong was taken compulsory measures, as of the close of trading on January 5, Baoli International was 2.3 yuan / share, down 11.15%. The stock bar was even more mournful, and the shareholder Xiaohai said: "Every day it falls, the heart is too painful." According to the announcement, as of September 30 last year, Baoli International had 45,000 shareholders.
Source: Baoli International official website
The trigger that accelerated Zhou Dehong's imprisonment was the "family infighting" of Baoli International 5 years ago.
On May 29, 2018, Zhou Dehong's niece Zhou Shifang publicly "reported" her uncle Zhou Dehong's extortion and persecution of her husband, Zou Aiguo, former deputy general manager of Baoli International, on Weibo as the "wife of Jiangyin Zou Aiguo's Unjust Case".
Zhou Shifang said that his uncle Zhou Dehong "still does not disclose in accordance with the relevant provisions of the CSRC in the disclosure of major matters" and that he has obtained evidence of a number of his violations and crimes.
The cause of the incident dates back to 2017, when Zou Aiguo was criminally detained on suspicion of asking for benefits from his partners. Zhou Shifang said in the "materials" of the report that her husband Zou Aiguo was taken away by the police "arranged" by his uncle during his detention, and was forced to sign a document repaying 30 million yuan to Baoli International, and after he paid 9.7 million yuan to the company, he was still filed.
On June 2, 2020, according to the Second Instance Criminal Ruling of the Wuxi Intermediate People's Court against Zou Aiguo, Zou Aiguo received bribes of more than 3.19 million yuan when he was the deputy general manager of Baoli International, and embezzled about 217,900 yuan of Baoli International's property and was sentenced to 6 years and 6 months in prison.
After the second-instance judgment was pronounced, Zou Aiguo and Zhou Shifang were not satisfied and chose to appeal, and the Wuxi Intermediate People's Court rejected Zou Aiguo's appeal on December 18, 2020.
False invoicing crime: Li Fucheng, the former "richest man in Yanjiao", was sentenced
On January 28, 2022, Fucheng Co., Ltd. (600965. SH) issued a notice saying that Li Fucheng, one of the actual controllers of the company, was sentenced to three years in prison, suspended for five years, and fined 500,000 yuan (paid), returned 30 million yuan of illegal gains, and paid 6 million yuan of bribes for several crimes such as bribery of non-state employees, false invoicing, and bribery of units.
From the former "cow herding baby" to the funeral king, Li Fucheng was once known as "Yanjiao Li Ka-shing". According to Aiqicha, Li Fucheng, as one of the actual controllers of Fucheng shares, has a total of 23 actual affiliated enterprises, of which 13 are legal representatives and 10 are shareholders.
Regarding Li Fucheng's sentencing, Fu Yongsheng, a lawyer at Shanghai Guangming Law Firm, said that the actual controller's sentencing must have an adverse impact on the company's stock price. However, due to the fact that the Li Fucheng incident has been fermenting for some time, this time the sentence was again suspended. By complying with the law during probation, you don't have to serve your sentence in prison, so the impact of this incident on the company's stock price may be limited.
M&A fraud: The first instance of the 2.4 billion M&A fraud case ended
The long-disputed Tianshan Biological merger and acquisition case was decided in stages in October last year. The court of first instance found that Chen Dehong, the original actual controller of Elephant Advertising, had committed contract fraud and sentenced him to life imprisonment, deprivation of political rights for life, and confiscation of all personal property. Because Chen Dehong is not the actual controller or chairman of the A-share listed company, the case did not appear in the aforementioned table, but due to the huge amount and high degree of attention, it is specially mentioned here.
Time back to September 2017, Tianshan Biology, which was on the verge of delisting, acquired 98.8% of the equity of Elephant Advertising by issuing shares and paying cash for a price of 2.37 billion yuan, while the total assets, revenue and net profit of Elephant Advertising before the acquisition far exceeded that of Tianshan Biologics.
Just one year later, Tianshan Biotech accused Chen Dehong of contract fraud, fund misappropriation, illegal guarantees, etc.; Chen Dehong said that Tianshan Biotech was slow to fulfill the 577 million yuan of cash promised to be paid, resulting in problems in the capital chain and a crisis.
In December 2018, Tianshan Biotech issued an announcement that its subsidiary Elephant Advertising had lost control and that a contract fraud case had been criminally investigated. At the same time, the CSRC decided to file a case investigation against the company.
After turning around the loss in 2017, Tianshan Bio lost 1.946 billion yuan in 2018 due to elephant advertising debt problems, and lost money again in 2019. In April 2021, the ticker symbol was changed to ST Tianshan. The actual controller of the company was changed to the late Head of the Zhongzhi Lineage Xie Zhikun in March 2020.
Looking at the reasons for the imprisonment of 21 capital tycoons who were arrested last year, it does not correctly reflect Kong Shangren's sentence in "Peach Blossom Fan": "Watching him rise up the Zhu Lou, watching him feast on guests, watching him collapse the building." ”
What do you think of these "prison storms" in A-shares in 2021? Feel free to leave a comment in the comments section to discuss additions.