On September 18, 2015, the China Securities Regulatory Commission Qingdao Donghai Hengxin Investment Management Co., Ltd. (hereinafter referred to as Donghai Hengxin) was suspected of manipulating 180ETF, Jin Jianyong was suspected of manipulating the stock price of "Guohai Securities", Zhang Chunding was suspected of manipulating the stock price of "China Satellite", and Yuan Hailin was suspected of manipulating "Suning Cloud Business", "Blu-ray Development" stock prices, and Ye Fei suspected of manipulating the prices of 5 stocks including "Xinwei Group", "Jinxi Axle", "Jianghuai Automobile", "Autosound" and "Zhongqingbao" The investigation and trial of 5 cases were completed.
Among the above-mentioned manipulation cases, Donghai Hengxin’s suspected manipulation of 180ETF was the first case of manipulation of ETF investigated and prosecuted by the China Securities Regulatory Commission, and Jin Jianyong’s suspected manipulation of the stock price of "Guohai Securities" was the first case of manipulation of securities markets by securities lending transactions investigated and prosecuted by the China Securities Regulatory Commission. The three cases were all cases that affected the price and trading volume of related stocks through short-term manipulation.
In the 5 cases of manipulation, Donghai Hengxin controlled the use of 12 accounts such as "Qianshi Capital-Donghai Hengxin Phase 1" to conduct 180ETF transactions between the accounts actually controlled by him from June 18 to July 30, 2015, affecting 180ETF Trading volume, I8OETF and the corresponding constituent stocks were reversed trading arbitrage within a day in disguised form, resulting in an illegal profit of RMB 184,291,170.59.
From June 1 to July 31, 2015, Jin Jianyong used the T+0 day rotation mechanism of securities lending transactions to concentrate its shareholding advantages and continuously traded "Guohai Securities" stocks, and at a time significantly higher than the market's simultaneous purchase of a stall Frequent commissions of sell orders caused short-term long-short-term power imbalances and strengthened the downward trend in the stock price of "Guohai Securities", with a profit of 441,911.05 yuan.
Zhang Chun is scheduled to influence the price and trading volume of the "China Satellite" stock from July 16th to 20th, 2015 through continuous intraday trading and trading between accounts under his control through concentrated funds. Profit 99,663,799.90 yuan.
From June 1st to July 31st, 2015, Yuan Hailin influenced the "Suning Cloud Business" and "Suning Cloud Business" and "Suning Cloud Business" through the use of capital advantages, shareholding advantages, continuous trading, transactions between accounts that he actually controls, false declarations, and reverse transactions. The prices of two stocks including Blu-ray Development were sold in the opposite direction, with a loss of 278,408,944.36 yuan.
From May 13th to June 30th, 2015, Ye Fei concentrated the capital advantage and continuously bought "Xinwei Group", "Jinxi Axle", "Jianghuai Automobile", "Automobile" and "Zhongqing" in the late trading stage. Five stocks such as "Bao" affected the price and trading volume of the relevant stocks, and then they were sold in the opposite direction with a profit of 6,637,915.13 yuan.
The aforementioned actions of Donghai Hengxin, Jin Jianyong, Zhang Chunding, Yuan Hailin, and Ye Fei violated the relevant provisions of Article 77 Paragraph 1 of the Securities Law and constituted manipulation of the securities market. Based on the facts, nature, circumstances, and degree of social harm of the parties, and in accordance with the provisions of Article 203 of the Securities Law, the China Securities Regulatory Commission intends to deal with Donghai Hengxin and its related responsible personnel, Jin Jianyong, Zhang Chunding, Yuan Hailin, and Ye Fei. The following administrative penalties: confiscation of Donghai Hengxin’s illegal income of 184,291,170.59 yuan, and impose a fine of 552,873,511.77 yuan, give a warning to the legal representative and general manager of Donghai Hengxin Shi, and impose a fine of 600,000 yuan, and give a warning to Donghai Hengxin’s deputy general manager Chen Jianguo, and A fine of 300,000 yuan was imposed; Jin Jianyong's illegal income of 441,911.05 yuan was confiscated, and a fine of 1,325,733.15 yuan was confiscated; Zhang Chunding's illegal income of 99,663,799.90 yuan was confiscated and a fine of 298,991,399.70 yuan was imposed; Yuan Hailin was ordered to deal with illegally held securities and a fine of 3 million yuan; Ye Fei's illegal income of RMB 6,637,915.13 was confiscated and a fine of RMB 19,913,745.39 was imposed.