A number of "pig killing plates" have come out of the water, and supervision has dealt a heavy blow to market manipulation

Another case of market manipulation surfaced.

On June 7, Sansheng Shares (002742.SZ) received a letter of concern from the Shenzhen Stock Exchange that the actual controller Pan Xianwen had been taken into criminal detention by the Chongqing Municipal Public Security Bureau on June 1 for suspected manipulation of the securities market. The Shenzhen Stock Exchange pointed out that the company did not disclose the above information until June 6, requiring it to fully demonstrate whether the relevant sensitive period transactions had used undisclosed information to carry out "accurate reductions" and constitute insider trading.

After the news of the actual controller's criminal detention broke, the company's stock price has fallen in response. On Monday (June 7), Sansheng shares opened down, and as of the close, fell 9.94%, closing at 4.62 yuan / share.

Regulation continues to punch market manipulation violations. According to the company's announcement and the comprehensive combing of the penalty information on the website of the China Securities Regulatory Commission, in the past two months, the "pig killing disk" behind many individual stocks such as Jiamei Packaging (002969.SZ) and Rendong Holdings (002647.SZ) has been exposed, and individuals or gangs suspected of market manipulation have been held responsible.

Further back, the actual controllers of some listed companies and shareholders holding more than 5% of the shares were criminally detained by the public security organs for suspected market manipulation, involving Yihua Health (000150.SZ) and Yinghe Technology (300457.SZ).

What do these market manipulation cases have in common? Which areas are the "high incidence zones" of market manipulation? The reporter combed and found that from the above-mentioned market manipulation case stocks, many stocks with a market value of less than 5 billion yuan (calculated by the latest closing price on June 7) covered light industry manufacturing, machinery and equipment, biomedicine, etc.

A number of "pig killing plate" cases have come to light

Rendong Holdings, Jiamei Packaging, Yao Ji Poker (002605. SZ), the above individual stock fluctuations have attracted market attention for a period of time. With the landing of one fine after another, the "pig killing plate" behind these individual stocks was exposed.

The CSRC said in late May that the CSRC, together with the public security organs, seized a major case of using the "black mouth" of the stock market to manipulate the market, accusing Jiamei of packaging a "pig killing plate" manipulation gang.

After investigation by the CSRC, it was found that Zheng Mou, the actual controller of the private equity fund, and his gang conspired with the capital allocation intermediary to borrow nearly 400 million yuan of funds and more than 80 securities accounts, significantly increased the price of Jiamei Packaging stocks in the form of continuous transactions and inversions, and colluded with the stock market "black mouth" to use the live broadcast room and WeChat group to lure investors to buy and take over the order at a high price, and their reverse sale illegal profits were tens of millions of yuan, suspected of market manipulation, illegal operation and other illegal crimes.

Recently, the CSRC has cooperated with the public security organs to arrest and arrest 23 key members of Zheng's gang.

A week earlier, the "bookmaker" Niu Sanjinghua behind Rendong Holdings had received a fine.

According to public reports, a "Notice of Service of Advance Notice of Administrative Penalties" disclosed by the CSRC on May 14 shows that Jinghua is suspected of manipulating Rendong Holdings, and pursuant to Article 192 of the Securities Law, the CSRC intends to impose an administrative penalty of 5 million yuan on him.

On May 13, the Guangdong Securities Regulatory Bureau fined Jiang Lifen more than 22.21 million yuan for manipulating eight stocks, including Yao Ji Poker.

After filing an investigation and trial, the Guangdong Securities Regulatory Bureau decided to confiscate 7.092 million yuan of illegal gains and impose a fine of 15.1186 million yuan on Jiang Lifen. The Guangdong Securities Regulatory Bureau found that between June 2016 and July 2018, Jiang Lifen actually controlled and used 10 securities accounts under the names of seven people, and the funds in the account group mainly came from Jiang Lifen's family funds.

Further back, the SFC's first fine for the year was also issued to a market manipulation case.

In January this year, according to the CSRC's market ban decision, Xiong Mochang and Wu Guorong used 196 accounts to manipulate the stock price of Warburg Pincus shares, losing 324 million yuan, Xiong Mochang was given a warning, a total of 2.05 million yuan in fines, and Wu Guorong was given a warning, a total of 1.85 million yuan fine.

There are also a number of cases of market manipulation that are still under investigation. For example, for the individual stocks mentioned in the "Ye Fei Breaking News Gate" incident, the CSRC said that it decided to file an investigation into the suspected manipulation of the price of stocks such as Litong Electronics and Zhongyuan Home in the relevant accounts.

Haozhi Electromechanical, Visionox and LONGi Machinery all received a letter of concern from the Shenzhen Stock Exchange on May 14, asking the company to conduct a self-examination of the relevant media reports and explain whether the relevant reports are true, whether there is collusion with a third party and separate manipulation of the company's stock price, sitting on the bank, etc., and whether there is any harm to the interests of listed companies and small and medium-sized investors.

The actual controller has repeatedly been suspected of market manipulation

In addition to the above-mentioned gangs or individuals manipulating relevant individual stocks to eat fines, it is not uncommon for the actual controllers of the company and shareholders holding more than 5% of the shares to be criminally detained by the public security organs for market manipulation.

*ST Chenxin (002447.SZ) said in mid-May in response to the annual report inquiry letter that Liu Dequn, the company's largest shareholder, was taken compulsory measures by the sub-bureau directly under the Public Security Bureau of Changzhou City, Jiangsu Province, for suspected manipulation of the securities market and insider trading, and a number of external debts defaulted, so all 9.78% of the company's shares held by him were frozen. Liu Dequn defaulted on a number of external debts, and the shares of the company he held were likely to be judicially disposed of.

Incomplete statistics, so far during the year, there have been a number of similar cases: Liu Shaoxi, the controlling shareholder and actual controller of Yihua Health, was investigated by the CSRC for suspected manipulation of the securities market; Li Yueheng, one of the actual controllers of Tianyi Shares, received the "Advance Notice of Administrative Punishment" and was fined more than 26 million yuan by the Sichuan Regulatory Bureau for suspected market manipulation; Wang Weidong, chairman and CEO of Yinghe Technology, was criminally detained by the public security organs for suspected of manipulating the securities and futures markets.

Regulators have repeatedly stated that they will strike hard and severely

Eradicate the cancer of manipulation in the A-share market and eliminate the residual "sitting on the throne" vice in the market, while issuing fines and warning letters, the regulatory level has repeatedly expressed its position during the year, and cracked down on vicious violations of laws and regulations such as market manipulation in a strict and swift manner.

According to the data of the CSRC, in 2020, there were 51 new cases of market manipulation in the whole year, an increase of 11% year-on-year.

"The number of cases in which the actual controller colluded with the market agency to manipulate the company's stock price increased, and 10 actual controllers were investigated throughout the year. The manipulation methods further show the characteristics of gangs and compounds. Judging from the amount involved in the case, a total of 22 market manipulation cases in the whole year had a transaction amount of more than 1 billion yuan, with an average profit of about 200 million yuan, which seriously damaged the interests of investors. Securities Regulatory Commission spokesperson Gao Li said in February this year.

In the past two months, the regulator has repeatedly stated that it will crack down on market manipulation and other violations of laws and regulations in a strict and severe manner.

In mid-April, Chen Jie, deputy director of the Inspection Bureau of the China Securities Regulatory Commission, said that the CSRC will continue to strengthen the supervision of the whole chain of listed companies, adhere to scientific supervision, classification supervision, professional supervision and continuous supervision, and urge listed companies and major shareholders to strictly abide by the four bottom lines, that is, not to disclose false information, not to engage in insider trading, not to manipulate stock prices, not to harm the interests of listed companies, etc., to consolidate the main responsibilities of listed companies, improve the level of corporate governance, effectively resolve risks, and improve the quality of listed companies.

At the end of May, Li Chao, vice chairman of the China Securities Regulatory Commission, said that he would thoroughly implement the new securities law and the amendments to the Criminal Law, continue to improve the foundation of the rule of law in the capital market, and crack down on vicious violations of laws and regulations such as fraudulent issuance, financial fraud, and market manipulation in the name of market value management, so that those who do bad things pay a heavy price.