First instance of the insider dealing case of Chong Hing property is suspended

July 26, the Xiamen Intermediate People's Court sentenced a corporate insider trading case, the defendant unit Shanghai Archosaur Landscape Development Co., Ltd. (hereinafter referred to as Shanghai Archosaur) guilty of insider trading crime, sentenced to a fine of more than 19.15 million yuan, and recover its illegal income of more than 19.15 million yuan; the defendant Chen guilty of insider trading and sentenced to two years　　, suspended for two years. Chen use it as Chong Hing Real Estate (600193.　　SH, formerly known as Xiamen Ocean, Chong Hing Science and Technology) Chairman and the actual control of the identity of the people, starting from March 2007, in the leading Chong Hing property in the direction of targeted additional injection of assets into the matter has not yet been public, using personal control of the Shanghai Archosaur Capital Trading Chong Hing Real estate stock, book "This is the first case of insider trading in a legal entity that has been adjudicated by the judiciary since October 1, 1997."　　"People in the legal profession say. However, Chen to the first instance, the court appealed, second trial will be in early October to sentence. "The likelihood of the revision is low, because the sentencing of Chen is already very light."　　"People close to the Justice Department say. "Such a substantiated insider trading case is the result of such a trial, only to show that the cost of insider trading in China is too low."　　"A person in the securities industry said.　　Chen, a 50-Year-old Chen, was born in Fuzhou, Fujian Province, graduated from Xiamen University, the Japanese department, earlier engaged in foreign trade industry, when young in Shenzhen to open a mushroom factory, and people in the Xiamen partnership with the Japanese Baked eel export. May 1999, Chong Hing Property (Xiamen Ocean for short) as Xiamen first listed private enterprises, officially in the SSE listed, the main business is roast eel processing, 1998 net profit of 26.27 million yuan.　　At the beginning of the listing, Chen not directly in Chong Hing real estate holding shares, but through the Shanghai Archosaur Indirect control of listed companies. Shanghai Ancestral Dragon was founded in July 2001, the shareholders were Chen Herbing, respectively, 70% and 30% of their holdings. Shanghai Archosaur, respectively, holding Xiamen Baihui Hing Investment Co., Ltd. and Xiamen Bo NA Technology Co., Ltd. 90% Equity, the latter two respectively holding Chong Hing Real estate 16.41% and 16.3% equity.　　In other words, Shanghai Archosaur is the main platform for Chen to manipulate listed companies.　　Chen has been an eight-member of the National Youth Association, Young entrepreneurs, Fujian province, the executive director of the Youth Chamber of Commerce, Xiamen Kaiyuan Chamber of Commerce Vice President and other posts, won the second National Youth Science and Technology Entrepreneurship Gold, Fujian outstanding Young entrepreneurs, Fujian province, the top ten outstanding young entrepreneurs and other titles.　　In 1999, one of the investment bankers listed for Chuang Hing Home was a "celebrity", Shei, who worked for Xiamen Securities, and Shei and his ex-wife had fled to New Zealand as a result of a suspected insider trading case against another publicly traded company.　　Chong Hing Property market after the listing, the stock price rose steadily, but the company's performance declined year by 2003, the loss of 1.8 million yuan, after the annual net profit maintained at about 10 million yuan. From 2001 onwards, Chong Hing property stripping the formerThe bleak view of the roast eel export business, to the real estate industry transformation. 2006 from Shanghai Archosaur to buy Hunan Qidong Shenlong Mining Co., Ltd. 52% of the equity, after the acquisition of the mine in July 2009 the remaining 48% of the equity.　　However, the project has not yet been able to bring benefits to listed companies. June 13, 2008, Chong Hing Real Estate disclosed that the actual control of the listed companies transferred to the Chen son Chen hands. Chen, 24 years old, studied architecture at the University of Texas from May 2004 to May 2009 and is now a U.S. citizen.　　Chen himself also has an "American Green card", and the father of Chen is now living in the United States. In the "2009 Hurun List", Chen to 1 billion yuan to become the list of the youngest rich.　　From the timetable of the father-son shift, Chen is "the line of fire."　　According to a number of people who have contacted Chen, Chen seems quite frankly honest, after the incident also actively cooperate with the parties to investigate, but in the court on the spot.　　The premature reorganization of 2007, Chong Hing property through the sale of a real estate company, a substantial increase in the thickness of profits to 110 million yuan. April 17, 2007, Chen with the company's senior executives and the international securities personnel to meet, plans to control the Shanghai Zhen Lung Real Estate company related assets into Chong Hing home.　　During the period from April 29 to May 7, the two sides decided to inject assets after conducting a mapping and preliminary assessment of refinancing and asset injection. As a result of the previous three trading days rose more than 20%, May 9, the company issued a notice of the stock price differential, the stock suspension for one day.　　Since then, Chuang Hing Home Property Bulletin said that the controlling shareholder and the actual controller said that the plan will be held assets into the company, but the relevant plans have not been finalized, the company's shares continue to suspend business.　　May 10, 11th, Chen with the China-Europe securities related project head to the CSRC listed department to do the pre-communication report, the Securities and Futures Commission listed department informed that the injected assets must be clear property rights, and demand its self-examination trading Chong Hing Real Estate stock situation.　　May 24, Chong Hing Real estate again issued a notice, after the argument, injected assets to implement the conditions are not yet available, is decided to cancel the relevant asset injection scheme, the company shares a license. During this period, the price of innovative property prices began from less than 5 yuan, to May the maximum of more than 18 yuan.　　September 10, 2010, closed at 15.75 Yuan. The SFC issued a letter of identification, Chong Hing real Estate control person Chen the assets held by the listed companies, will have a significant impact on the company's share price, under the "Securities law" in the insider information, the price sensitive period of April 17, 2007 to May 9, Chen for insider information Legal insider.　　And the SFC confirmed that Chen single-handedly to make the company asset injection, single-handedly also use this insider information in the two market to buy Chong Hing technology stocks. The truth of insider trading according to the Shanghai Stock Exchange market supervision, Shanghai and Fuzhou have a large number of linked accounts in this sensitive period to participate in transactions, including Everbright Securities ShanghaiZhangyang Sales Department and Hunan Treasury securities Fuzhou Wusi Road Sales department in April 23 to focus on buying Chong Hing home.　　Security inspectors in the access to these accounts to open the data found that these accounts hanging in the same fund account, the depositary are Beijing Hundred Technology Co., Ltd. and Xiamen edge of Property Management Ltd. According to industry and commerce information, Xiamen Edge Property Management Co., Ltd. was established in 1997, the legal representative is Chen, after a change of three legal representatives, but before May 29, 2007, Chen has been its controlling shareholder, before the transfer to three natural persons.　　Securities inspectors in the in-depth investigation of the sales department found that the company in a number of sales department opened the funds account under the hundreds of shareholder account agent information, Chen is the sole agent.　　Another account company Beijing Hundred Technology Co., Ltd., founded in January 2000, the legal representative is Bing Wei, is also Chen in Shanghai Archosaur one of the partners. Inspectors found that the two companies and Shanghai Archosaur There is a large amount of money between the exchange.　　From February 2007 onwards, Chen successively will Shanghai Archosaur, Shanghai Zhen Dragon more than 50 million yuan funds successively into these two companies in Hunan Treasury securities Fuzhou Wusi Road Sales Department of the stock account. From April 17, 2007 to May 9, Chen and his wife used the above account to buy and sell a large number of Chong Hing Real estate stock, buy a total of more than 4.8 million shares, the actual payment of more than 60.03 million yuan, the sale of more than 1.41 million shares, the actual recovery of more than 23.33 million yuan, to May 9,　　The three stock accounts and 3.39 million stocks were not sold, calculated on the May 8 closing price, the cumulative book profit of 19.15 million yuan. In the Commission's administrative inspection and the public security organs investigation and forensics stage, Chen very cooperate, also admitted that they committed crimes, and said that these funds are their own high interest borrowing.　　But on the day of the trial, Shanghai Archosaur argued that Chen Yu, who was born in early 2007 to enter a securities account to buy and sell stocks, does not have insider information as stipulated in the Securities Act. Chen questioned the CSRC's "sensitive period of insider trading".　　In his view, the asset injection plan had been proposed by 2007, but no progress had been made. The Xiamen Intermediate People's Court did not fully accept Chen's defense opinion.　　The verdict found that asset injection was not groundless and could have a significant impact on the price of securities trading, and was not understood by all investors in the securities market and the public at large, which was insider information. However, the first instance of the court approved the case is a unit of crime, Chen Department for the interests of the Unit to carry out the relevant criminal acts, so Chen lighter punishment and apply probation.