Panda fireworks scandal over insider trading

A penalty letter from the SFC, opened the Panda Fireworks (600599) 5 years ago, a insider trading case, and Panda fireworks has just been the Hunan Securities Regulatory Bureau on the three responsibilities and the issue of funds ordered rectification.　　Market participants said the issue of panda fireworks from capital operations to corporate governance has reached an alarming level. It goes back to 2005, when Guangzhou climbed (now the Galaxy Investment) to the total cost of about 150 million yuan to obtain Liuyang fireworks (now panda Fireworks) 52.39% of the equity, become its controlling shareholder.　　After this, Guangzhou climbed and Zhao Weiping (Guangzhou climbed up to the legal representative, the current Chairman of the Panda fireworks) many times using the consistent Action Account to Liuyang fireworks stock trading. Then, January 20, 2006, the Wanzai County People's Court of Jiangxi province at that time to Liuyang Fireworks National Unit for auction, Guangzhou climbed, Kindi and Wu Niuhua bid successfully. And after investigation, the above Kindi, Wu Niuhua hold the Liuyang fireworks stocks are controlled by Guangzhou, but the Guangzhou climbed up at that time did not disclose the Guangzhou climbed and Zhao Weiping, Kindi, Wu Niuhua between the consistent action relationship.　　And after the Liuyang Finance Bureau and Guangzhou climbed Tatsu signed the agreement on the transfer of shares, Guangzhou climbed still did not disclose the Guangzhou climbed and Zhao Weiping, Kindi, Wu Niuhua between the concerted action relationship. Not only that, Zhao Weiping has also been exposed to the illegal sale of listed companies in the stock behavior. According to verify, July 1, 2006, in Guangzhou climbed Dachenggong into the listed company, Zhao Weiping elected as Liuyang fireworks director.　　Zhao Weiping then bought Liuyang fireworks stock, and in 6 months sold 872,500 shares. The SFC to Guangzhou climbed Tatsu and Zhao Weiping to punish, ordered Canton to make corrections at the same time, to its warning, and fined 300,000 yuan.　　In addition, in view of the Zhao Weiping, Guangzhou climbed up to the legal representative, was directly responsible for the above matters, and because of the illegal sale of shares, the two individual violations of his personal warning, and fined 150,000 yuan. In fact, it is the second time that panda fireworks have been penalized by the authorities. In July this year, Hunan Securities and Supervision Bureau issued a rectification book, a small number of companies to accounting statement items, large to hundreds of billions of dollars to the lack of money, down to the staff pay accounting confusion, to the Chairman of the Board of directors frequently absent from the general meeting of the various issues. Analysts also said that if major shareholders continue to bully the rights of shareholders, the good company will also be destroyed in his own hands.