Business
20:27, 22-Oct-2017
Insider trading punished by China securities watchdog
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Three people were named in a China Securities Regulatory Commission (CSRC) statement for taking advantage of knowledge of a series of acquisitions by Shenzhen-listed Hengkang Medical Group Co., Ltd. The illegal earnings have been confiscated and huge fines have been imposed on these individuals.
Liu Yuejun, the actual controller of a hospital in southwest China's Sichuan Province, bought shares in Hengkang Medical via other peoples' stock accounts before the hospital sold its treatment center to Hengkang Medical. He has to forfeit 34 million yuan (more than 5 million US dollars) and face a fine of around 100 million yuan.
Likewise, Wang Guoxiang and Xue Bingyuan, who profited from the insider information of Hengkang Medical's acquisitions, also face confiscation of their illegal gains and fines.
In the first eight months, the CSRC has strengthened supervision partly by handing out more fines, nearly half of which were for insider trading. Those fines now total nearly 7 billion yuan, up 141 percent year on year.
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Source(s): Xinhua News Agency