Game company boss engaged in insider trading, cast 18 million net profit 18 million, securities regulatory bureau: fine 72 million

2022-05-12 0 By

Recently, Hainan securities regulatory Bureau disclosed a decision of over 70 million yuan of administrative punishment.As an insider of mingchen Health’s (27.980,1.69, 6.43%) acquisition of Hainan Huduo and Hangzhou Leiyan equity matters, the party concerned, Chen Xisheng, borrowed other people’s accounts to buy mingchen Health before the disclosure of insider information, and the transaction amount reached 18.1101 million yuan. After the disclosure of insider information, all the stocks were sold.The transaction amount was 36,340,400 yuan, with a total profit of 18.181,200 yuan and a profit of nearly 100%.In the face of punishment, Chen sheng put forward six aspects of the defense, which the Hainan Securities regulatory Bureau believes that the statement of defense is not established.In the end, Hainan securities regulatory Bureau decided to Chen sheng “not a fine of three” total of 72,724,900 yuan.Mingchen health acquisition related equity matters on March 11, Hainan Securities regulatory Bureau disclosed the administrative penalty decision for Chen.And this matter originated from the famous minister health acquisition of Hainan Huado, Hangzhou Leiyan equity matters.It is reported that in 2019, Mingchen Health began to expand the acquisition target to animation and game projects.On May 24, 2020, Mingchen Health chairman Chen Mou fa and others and Guangfa Securities (17.430, -0.07, -0.40%) Yang Mou Jian met and talked in Shanghai, Chen Mou fa hopes Yang Mou Jian to help find a suitable acquisition target, help Mingchen health business transformation.At the end of May 2020, Yang Mou Jian met With Chen Mou Sheng, chairman of Guangzhou Ice Bird Network Technology Co., LTD., and proposed that a listed company has acquisition demand, and Chen Mou Sheng to understand whether its game company is willing to sell.Chen said there was no demand to sell temporarily.According to the official website, Ice Bird games operates four games, including “Legend of Violence”, “Fairy And Demon”, “Fairy Gate” and “Siege of three Kingdoms”, with a monthly turnover of more than 90 million yuan.In early June 2020, Chen Sheng contacted Yang Mou Jian to introduce the business situation of Hainan Huaduo and Hangzhou Leiyan.Subsequently, Yang mou jian introduced the situation of the two companies to the famous minister health management, the famous minister health management expressed willingness to visit the two companies.On June 11, 2020, the famous health management team went to Guangzhou to inspect Hainan Huaduo and Hangzhou Leiyan.In hangzhou Leiyan conference room with Chen Sheng, Yang Mou Jian, Hainan Huaduo General manager Meng, Hangzhou Leiyan general manager Zheng Mou Wei talks.On June 28, 2020, Yang Mou Jian, Chen Mou Sheng, Meng mou and Zheng Mou Wei went to Shantou Mingchen health headquarters and mingchen health management for talks.Mingchen health further clarified the acquisition intention, basically determined the cash acquisition of Hainan Hua much, Hangzhou Leiyan principle and step by step to pay the way of trade.On July 14, 2020, the two parties formed a preliminary acquisition plan and agreement.The second round of talks was held on 25 July 2020.On August 7, 2020, Mingchen Health signed a transaction agreement with Hainan Huado and Hangzhou Leiyan. On the same day, Mingchen Health held a meeting of the board of Directors and the Board of Supervisors to review and approve the acquisition of 100% equity of Hainan Huado and Hangzhou Leiyan.On August 10, 2020, Mingchen Health officially released the announcement on the acquisition of 100% equity of Hainan Huado Network Technology Co., LTD., and 100% equity of Hangzhou Leiyan Network Technology Co., LTD.Hainan Securities Regulatory Bureau said that Mingchen Health acquisition of Hainan Huaduo, Hangzhou Leiyan equity matters belong to the “Securities Law” provisions of the company’s major investment behavior, constitute the “Securities Law” provisions of the inside information.The inside information was formed no later than June 28, 2020, and was made public on August 10, 2020. Chen was promoted to be an insider of the inside information.After investigation, Chen Mou Sheng actually controlled and used “Xie Mou Hong” Huaxin Securities account and “Liu Mou Rong” Ping an securities account to trade “mingchen Health” stock in the sensitive period of inside information.The two accounts bought 930,100 shares of mingchen Health from August 4 to 7, 2020, with a transaction amount of 18.110,100 yuan. After the disclosure of insider information, all the shares were sold with a transaction amount of 36.340,400 yuan, with a total profit of 18.181,200 yuan.For the upcoming punishment, Chen sheng put forward six arguments, but the Hainan Securities regulatory Bureau that its arguments are not established.The reporter noted that one of Chen’s arguments is that it is not sufficient to be an insider in the case.He said that he was the person who introduced the acquired company to the listed company, did not work for either side of the transaction, only completed the matchmaking work of both sides of the transaction, and did not fall under the securities Law of the People’s Republic of China.Securities regulatory bureau of hainan response, according to the survey, XXL litres recommended to advocate health acquisition targets, and participate in the acquisition of the two sides negotiated planning phase of the talks twice, in the business directly involved in this case the formation process of inside information, be together health in the trading process memorandum, confirmed and signed by the XXL liters.Existing evidence is enough to prove that Chen mou Sheng belongs to the “Securities Law” provisions of insider information.Finally, Hainan Securities Regulatory Bureau decided to confiscate Chen’s illegal income of 18.1812 million yuan, and imposed a fine of 54.5437 million yuan, a total of 72.749 million yuan.It is worth mentioning that in mingchen health acquisition of Hainan Hua much, Hangzhou Leiyan equity matters, in addition to the foregoing, but also the breeding of a number of insider trading cases.In February this year, Hainan Securities regulatory Bureau also on Wang Mou Rong, Li Mou such as administrative penalties, the former a total of 5.8823 million yuan, the latter a total of 76.400 million yuan.That brings the total forfeiture from the three insider trading cases to nearly 80 million yuan.Original headline: CEO of gaming company engaged in insider trading, netted $18 million by investing $18 million, but was fined $72 million