Beijing No. 1 Intermediate Court accepted the filing of the case and held a hearing on April 3, 2014.

The Beijing No. 1 Intermediate People’s Court announced on its official Weibo on the evening of December 23 that it would publicly pronounce the verdict of Yang Jianbo against China Securities at 9:30 a.m. on December 26 at the Xizhong Court. The Supervision and Management Committee’s administrative penalty decisions and market entry ban decisions. On the morning of December 26, 2014, the No. 1 Intermediate People’s Court of Beijing publicly pronounced its verdict on Yang Jianbo’s decision on administrative penalty and market ban decision against the China Securities Regulatory Commission.

After trial, the court held that Everbright Securities’ wrong order transactions that morning had a significant impact on the prices of the CSI 300 Index, 180 ETF, 50 ETF and stock index futures. The defendant, the China Securities Regulatory Commission, accordingly determined the wrong order transaction information. It is inside information and complies with legal requirements.

The court held that the hedging transaction of Everbright Securities that afternoon was a unilateral hedging transaction involving selling in the securities market and shorting in the futures market at the same time when it established a huge long position due to wrong orders. It takes advantage of the unilateral impact that insider information may have on the market. Therefore, the court did not support the claim that the hedging transaction of Everbright Securities held by Yang Jianbo that afternoon was based on the established investment plan and instructions of market-neutral investment and did not make use of inside information.

Accordingly, the court ruled to reject Yang Jianbo’s request for the China Securities Regulatory Commission to revoke the administrative penalty decision and ban decision against him. Regarding the judgment, Yang Jianbo stated in court that he would appeal.