Citic Securities detailed disclosure of 19 irregularities in three years

Absrtact: In the recently released H-Share prospectus, Citic Securities disclosed 19 irregularities in the past three years, ranging from illegal employee participation in securities transactions to unauthorized extraction of client funds. Although Citic's active disclosure received market acclaim, but yesterday

In the recently released H-Share prospectus, Citic Securities disclosed 19 irregularities in the past three years, ranging from employee involvement in securities transactions to unauthorized withdrawals of client funds. Although Citic's unsolicited disclosure received praise from the market, media reports said yesterday that there was a "wonderful" insider trading case not disclosed in the 19 violations. It is said that Citic Securities before the computer department staff Liang Jinghui in 2006 in Citic Securities, through their own superb network technology, stealing 35 of the insider information of listed companies, can be called the real version of the "eavesdropping situation."

It is understood that, in 2006, Liang Jinghui use of his work in the Citic Securities computer Department of convenience, to the exchange staff to send a large number of hidden Trojan mail, once the other computer recruit, Liang Jinghui can remotely scan the computer file title, once the search to "performance advance", "substantial growth", "Profit distribution scheme" And so on, immediately encrypt the title and send it to Liang Jinghui storage space on an offshore website. Through specific software, Cai Tiancong, as an accomplice, receives and reads Liang Jinghui stolen encrypted information directly from the overseas websites, and uses the information insider trading to gain a very covert approach.

At the same time, from July 2006 to August, Liang Jinghui also took advantage of the position to enter the company's office system, many times from the computer server stolen CITIC Securities and other listed companies to discuss the reform, acquisition, reorganization, the overall listing and other internal reports, and through the above channels, transmitted to Cai Tiancong.

Liang Jinghui through the above means, before and after the total theft of 35 listed companies inside information. October 2007, Shanghai Pudong New Area People's court to make a verdict: Liang Jinghui guilty of leaking insider information, sentenced to 1 years imprisonment, a fine of 50,000 yuan, Cai Tiancong guilty of insider trading, sentenced to 6 months, a fine of 50,000 yuan.

Interestingly, although the film version of the "eavesdropping", insider traders hand is profiteering, but Liang Jinghui although the technology is brilliant, but the benefits are generally. For example, two people with the news of the big increase in earnings, the sale of Mo-hua, only 3.6% profit, in the 2006 bull is hardly worth mentioning.

"The heart of selling white powder, earning the money to sell cabbage, but also the loss of their own", yesterday Weibo many investors sigh insider trading looks very beautiful, in fact, not only difficult to realize the dream, but slippery to the abyss of crime. Like the tragic end of the movie "eavesdropping," the real-world version of "eavesdropping" gave investors the same warning.