The Yi 'an Science and Technology Case has finally come to light. The China Securities Regulatory Commission recently decided to punish four Guangdong investment consulting companies that jointly manipulated the stock price of Yi 'an Technology: confiscate the illegal income and impose a total fine of 898 million yuan, and sell the remaining 77, shares within three months, with the profits confiscated.
these four companies are: Guangdong xinsheng investment consultant co., ltd., Guangdong zhongbai investment consultant co., ltd., Guangdong baiyuan investment consultant co., ltd. and Guangdong jinyi investment consultant co., ltd.
according to the investigation, since October 5, 1998, the above four companies have concentrated their funds and used 627 individual stock accounts and 3 corporate stock accounts to buy a large number of shares of "Shenjinxing" (later renamed as "Yi 'an Technology"). The number of positions increased from 53, shares on October 5, 1998, accounting for 1.52% of the outstanding shares, to 3.1 million shares on January 12, 2, accounting for 85% of the outstanding shares. At the same time, through the different stock accounts under its control, it also conducts self-buying and self-selling without transferring ownership, affecting the trading price and trading volume of securities, and jointly manipulating the stock price of "Yi 'an Technology". As of February 5, 21, 627 individual stock accounts and 3 legal person stock accounts controlled by the above four companies realized a profit of 449 million yuan and a stock balance of 77, shares.
the behaviors of these four companies violated the provisions of Articles 71 and 74 of the Securities Law and constituted the behaviors described in Articles 184 and 19 of the Securities Law. According to the provisions of Articles 184 and 19 of the Securities Law, the China Securities Regulatory Commission decided to confiscate the illegal income of the above four companies for 449 million yuan and impose a fine of 449 million yuan; Four companies were ordered to sell the remaining 77, shares under the supervision of the Exchange within three months from the date of receiving the punishment decision, and their personal stock accounts opened in violation of regulations were cancelled, and their profits were confiscated. The four companies shall remit the fines and confiscations to the bank where the China Securities Regulatory Commission opens an account within 15 days from the date of receiving the penalty decision, which will directly turn them over to the state treasury, and send a copy of the payment voucher to the Executive Supervision Office of the Inspection Bureau of China Securities Regulatory Commission for future reference.
if the above four companies are not satisfied with this punishment decision, they may file an administrative reconsideration with the China Securities Regulatory Commission within 6 days from the date of receiving the punishment decision; You can also bring an administrative lawsuit directly to the people's court with jurisdiction within 3 months from the date of receiving the punishment decision. During the period of reconsideration and litigation, the above decision shall not be suspended.
what does the yi' an science and technology case show? There are serious institutional defects in the stock market
Since October 5, 1998, the four bookmakers who manipulated the stock price of Yi 'an Technology have used centralized funds, self-buying and self-selling to influence and control the stock price for more than two years, speculating a stock with a few dollars to the highest price of 126 yuan, and the book profit of the bookmakers once reached more than 2 billion yuan. After the stock market plummeted to a minimum of 2 yuan, the majority of Chinese companies. The case of Yi 'an Science and Technology once again shows that there are serious institutional defects in China stock market, and the supervision of the securities market needs to be improved and innovated.
One of the revelations: a real-time market monitoring system should be established independently of the exchange.
Although the Shanghai and Shenzhen Stock Exchanges have been able to monitor the stock price movements in real time technically, why do they turn a blind eye to illegal activities such as insider trading and market manipulation like Yi 'an Technology? Why not suspend trading for investigation or give investors a risk warning? It may be difficult to find a satisfactory answer for investors, but these questions at least show that the monitoring system subordinate to the exchange is inefficient and unfair.
The urgent task is to reform the system of the Exchange, change its status as a de facto subordinate to the CSRC into a market-oriented independent operation, set up a market monitoring system independent of the Exchange and subordinate to the CSRC or the Securities Industry Association, and employ professionals such as lawyers, accountants, analysts and computer engineers to conduct real-time monitoring, and take timely risk prevention and warning measures.
The second revelation: Strictly restrict the behaviors of securities operating institutions and their traders
All kinds of insider trading and market manipulation behaviors are inseparable from the close cooperation of securities operating institutions and their traders. Although the division of labor is different, they are * * * conspiring to defraud and sharing the stolen goods. Bankers use their personal ID cards to open accounts, open positions and divide positions, buy and sell, and transfer illegal income, which is impossible without the cooperation of securities institutions. Therefore, in addition to legislating to force securities operating institutions and their traders to bear joint and several liabilities, the regulatory authorities should also strengthen the internal control mechanism of securities operating institutions and revoke their business licenses for illegal securities trading business departments.
revelation 3: dynamic supervision of information disclosure of listed companies
the existing supervision mechanism is satisfied with static supervision of information disclosure of listed companies, that is, the information disclosed by listed companies for the first time or the first time is audited and confirmed, while the inconsistent information released by listed companies on the same event that is misleading, fraudulent and maliciously affects the stock price has not been effectively tracked and randomly supervised. These malicious fraud and misleading behaviors have intensified in the securities market in recent years and have become a typical immoral behavior. The so-called "cooperation with Tsinghua University", "development of electric vehicles, nanotechnology" and other false information spread by Yi 'an Technology to cooperate with the bookmakers' hype have deceived many investors. Investors hate the childish deception in this kind of market, but the regulatory authorities are still indifferent, and at most they condemn it with a few words from the exchange.
Enlightenment 4: We should implement the "sunshine law" on the relationship between the major shareholders, management and bankers of listed companies.
Most insider trading and market manipulation behaviors are related to the major shareholders and management of listed companies, and some are even concocted by the major shareholders or management. Therefore, it is necessary to make their relationship with the bookmakers public and make necessary restrictions. For example, the major shareholders of listed companies are required to disclose the amount of funds, account opening institutions and shareholdings that they directly or indirectly enter the stock market in a timely manner, limit the number of shares of listed companies that they buy and sell through intermediary companies such as consulting, and limit the trading interval; If the relatives, subordinates or actually controlled persons of the chairman, directors and other senior executives of a listed company directly or indirectly buy or sell a certain amount of shares of the listed company in the name of individuals or companies in the secondary market, the chairman and others have the obligation of public disclosure.
Enlightenment 5: Deal a fatal blow to the bookmakers who illegally manipulate the market
We should form such a * * * knowledge: China securities market is supported by 6 million investors, not by a few bookmakers and large institutions; It is ordinary investors who fatten the banker, not the banker who feeds the investor. Therefore, standardizing the securities market and severely cracking down on Heizhuang may have an impact on the stock price in the short term, but in the medium and long term, it will protect more innocent investors from losses caused by fraud, and objectively restore the stock price to a reasonable price and squeeze out the bubble created by the bookmakers. Under this blow, ordinary investors will suffer losses, but the losses of bookmakers will be even heavier, because their financing costs are higher, the capital chain is more fragile and the accumulated financial risks are greater. On the other hand, by cultivating qualified institutional investors, standardizing Public Offering of Fund, starting private equity funds, and opening qualified securities consulting institutions to accept entrusted wealth management and buy and sell stocks on behalf of clients, a large number of "good villages" that are strictly regulated have become the main force of the trading market.
Revelation 6: Take the establishment of interest compensation mechanism as the top priority of investor protection
The protection of existing regulatory mechanisms for investors mostly stays at the level of policy declaration, and is mainly satisfied with providing relevant information to investors, and then making more abstract systematic and unsystematic risk education and tips to investors. These regulatory measures are necessary, but they are far from enough. One of the important criteria for judging the efficiency of supervision should be that investors can get compensation in law and fact when they suffer losses in fraudulent acts such as insider trading, market manipulation and misleading information. Regulators should satisfy or support the interests of investors through case handling. Whether it is the legislative purpose of the securities law or the regulatory purpose of the CSRC, it is to protect the interests of investors. If the regulators are only satisfied with the administrative punishment of the offenders and hand over the money defrauded by the offenders from investors to the state treasury, then obviously, the regulators have not fulfilled their statutory duties of protecting investors. In addition, when investors claim the right of civil claim according to law, the regulator can only support the investor's claim in a clear-cut manner in accordance with the provisions of the Civil Procedure Law, and its policy declaration to protect the interests of investors can be transformed into concrete actions, thus winning the trust of investors. It should be noted that regulators essentially represent the interests of investors, not or should not represent the interests of large institutions, listed companies and intermediaries.
Revelation 7: Any regulatory body exercising "public power" and its responsible person should not make subjective and tendentious comments on the stock market.
When the share price of Yi 'an Technology broke through the threshold of 1 yuan, the responsible person of the relevant institution praised the China 1-yuan stock on the grounds of supporting the technology stock, which objectively "cooperated" with the manipulation of the banker and misled investors at the policy level. Facts have proved many times that it is ok for regulatory agencies to care about the stock market, but they must never guide the stock market, otherwise, once the losses of investors are caused, the regulatory agencies will be hard to blame.
CSRC Reveals Insider of "Yi 'an Technology" Case
The China Securities Regulatory Commission made a decision today to impose heavy penalties on Guangdong Xinsheng Investment Consulting Co., Ltd., Guangdong Zhongbai Investment Consulting Co., Ltd., Guangdong Baiyuan Investment Consulting Co., Ltd. and Guangdong Jinyi Investment Consulting Co., Ltd., which jointly operated the shares of "Yi 'an Technology" in violation of regulations, with fines of nearly 9 million yuan. At the same time, the China Securities Regulatory Commission also disclosed in detail the whole story of the "Yi 'an Technology" stock manipulation event, which means that the myth of the first "Yi 'an Technology" stock with a share price exceeding 1 yuan in China's securities market is shattered.
The stock of "Yi 'an Technology" once rose from 5.6 yuan in August 1998 to 126.31 yuan in February last year, with an increase of 21.5 times, which was praised as the myth of China stock market by the majority of investors.
"Yi 'an Technology" was formerly Shenzhen Jinxing Industrial Co., Ltd., and it was listed and traded in Shenzhen Stock Exchange on May 7, 1992. In March, 1999, Guangdong private enterprise Yi 'an Group acquired more than a quarter of the shares of Shenjinxing held by Shenzhen Trading Holding Company and became the largest shareholder of Shenjinxing. In August of the same year, Shen Jinxing announced its name change to Guangdong Yian Technology Co., Ltd., and the stock of "Shen Jinxing" was officially renamed as "Yian Technology". From October 25, 1999 to February 17, 2, the share price of Yi 'an Technology rose nonstop from 26 yuan in just 7 trading days. By February 15, 2, the share price of Yi 'an Technology broke through the 1-yuan mark, becoming the first stock with a market price exceeding 1 yuan since the split of Shanghai and Shenzhen stocks, which caused a great shock to the market.
as far as the insider information disclosed by China Securities Regulatory Commission is concerned, the soaring stock of "Yi 'an Technology" is purely a banker's manipulation. Since October 5, 1998, these four companies in Guangdong have concentrated their funds and used 627 individual stock accounts and 3 corporate stock accounts to buy a large number of shares of "Shenjinxing" (later renamed as "Yi 'an Technology"). The number of positions held increased from 53, shares on October 5, 1998, accounting for 1.52% of the outstanding shares, to 3.1 million shares on January 12 last year, accounting for 85% of the outstanding shares. At the same time, through the different stock accounts under its control, it takes itself as the trading object and carries out self-buying and self-selling without transferring ownership.
these behaviors coincide with the soaring stock price of "Yian Technology". These four companies conduct almost cost-free trading through the stock accounts they control, which affects the trading price and volume of securities, and jointly manipulates the stock price of "Yi 'an Technology" to make huge profits. As of February 5 this year, the above four companies achieved a profit of 449 million yuan by controlling their stock accounts, with a stock balance of 77, shares.
The stock crash of "Yi 'an Technology" began in mid-January this year. In view of all kinds of abnormal behaviors of "Yi 'an Technology" stock, China Securities Regulatory Commission announced on January 1th this year that it was investigating the case of suspected manipulation of "Yi 'an Technology" stock, and had focused on monitoring the main accounts holding Yi 'an Technology stock. Affected by this news, on the same day, Yi 'an Technology's stock opened at a daily limit of 42.66 yuan, and it was sealed on the daily limit, and the transaction was extremely shrinking. " Yi 'an Technology "shares have fallen successively since then.
article 71 of the securities law of the people's Republic of China stipulates: "it is forbidden for anyone to obtain illegitimate interests or pass on risks by the following means: (1) manipulating the trading price of securities by concentrating capital advantage, shareholding advantage or using information advantage to jointly or continuously buy and sell; (2) Collusion with others, trading securities with each other at a pre-agreed time, price and manner, or buying and selling securities that are not held by each other, which affects the price or volume of securities trading; (3) buying and selling by oneself without transferring ownership, which affects the trading price or volume of securities; (4) manipulating the price of securities trading by other means. "； Article 74 stipulates: "In securities trading, legal persons are prohibited from opening accounts in the name of individuals and buying and selling securities. "。
As far as the facts announced by the China Securities Regulatory Commission today are concerned, there is no doubt that these four companies have engaged in illegal operations. The four companies that hyped "Yi 'an Technology" flagrantly violated the Company Law and the Securities Law, and unscrupulously manipulated their stock prices to make huge profits.
stock price manipulation belongs to securities market fraud. China Securities Regulatory Commission investigated and dealt with the "Yi 'an Technology" stock incident and cracked down on malicious market manipulation by institutions according to law, which is a powerful measure to regulate the securities market. With the implementation of a series of measures, such as the delisting of PT Narcissus and the approval system for stock issuance, it shows that the China Securities Regulatory Commission has made standardizing the market and protecting the interests of investors as its work focus. At the same time, it also shows that the current securities market in China has entered a new historical stage. Strengthening the crackdown on securities crimes, protecting the interests of investors and promoting the standardized development of China's securities market will become the theme of China's securities market.