TCL Technology "Oolong Finger": One Sell One Buy One Earn 140,000
Li Dongsheng sold 5 million shares by mistake and bought them back. After apologizing overnight, the stock price rose by more than 5%; the lawyer said it was subjectively non-malicious to reduce holdings or deal lightly
"Oolong Finger" reappears.
On the evening of September 1, TCL Technology issued an announcement stating that the company had received the "Apologetic Statement on Misoperation of TCL Technology Stocks" by the company's major shareholder Mr. Li Dongsheng, and Li Dongsheng sold 5 million shares of TCL Technology shares by mistake.
On September 2, TCL Chairman Li Dongsheng posted a message on Weibo to respond again to the "Oolong Finger" incident in stock trading the day before, admitting that his operation was a violation of regulations and was willing to take corresponding responsibilities.
However, TCL Technology's stock price has not been greatly affected by the "Oolong Index".
As of the close of September 2nd, TCL Technology's share price was reported at 7.56 yuan, up 5.59%.
Oolong refers to the whole story: one sell and one buy earn 145,000 yuan
TCL Technology explained in detail the Oolong Finger incident in its September 1 announcement.
At 1:03 pm on September 1, the trading service personnel entrusted by Li Dongsheng misoperation due to a mistake in entering the securities code, sold 5 million shares of TCL Technology stocks, with a turnover of 35,909,800 yuan; the trading service personnel at 2:48 pm on the same day The above 5 million shares of the company’s shares were bought back, with a turnover of 35,764,700 yuan.
Li Dongsheng made a profit of 145,000 yuan in a sell-and-buy transaction within two hours.
For a time, whether Li Dongsheng cashed out became the focus of controversy.
Li Dongsheng said in the statement: “As the company’s largest shareholder, founder and chairman, I have increased my holdings of the company’s shares many times. I am full of confidence in the company’s business development and continue to be optimistic about the company’s long-term value. Owned by the company, the transaction taxes and fees incurred shall be borne by me, and I shall accept the legal responsibility for misoperation. At the same time, in order to prevent similar situations from recurring, I have withdrawn the account management right and managed by myself."
The announcement showed that the above-mentioned trading actions objectively violated the "Securities Law", "Shenzhen Stock Exchange Listing Rules" and other regulations on short-term trading.
After the company's verification, the short-term transaction did not involve trading company stocks due to the knowledge of insider information, nor did it use short-term trading to seek benefits.
On September 2nd, Li Dongsheng published Weibo and explained again. He stated that after learning about the misoperation, "I immediately asked the secretary of the board to consult with lawyers, intermediaries and regulatory agencies, and learned that this operation was illegal. Yes, but if you buy it back immediately, it will constitute another violation. How to deal with it should be decided by me. I decided to buy back 500 in the market from the perspective of restoring the truth of the matter, safeguarding the interests of the company and shareholders, and maintaining the principle of integrity of executives. Ten thousand shares, restore the status quo before the transaction, and are willing to bear corresponding responsibilities."
Oolong refers to why it violated the regulations: the reduction of holdings was not disclosed in advance
Li Dongsheng stated on Weibo that he asked the secretary of the board to consult with lawyers, intermediaries and regulatory agencies, and learned that this operation was illegal.
It is understood that Li Dongsheng violated Article 8 of the "Provisions on Shareholding Reduction of Shareholders of Listed Companies, Directors, Supervisors, and Senior Executives". Major shareholders and directors, supervisors, and senior executives of listed companies plan to reduce their shareholding through centralized bidding transactions on the stock exchange. The share reduction plan shall be reported to the stock exchange 15 trading days before the first sale and the share reduction plan shall be disclosed by the stock exchange for the record.
The regulations show that the content of the reduction plan for major shareholders, directors, supervisors, and senior executives of listed companies should include, but are not limited to: the number of shares to be reduced, sources, time intervals, methods, price ranges, and reasons for the reduction.
The time interval for the reduction of holdings shall comply with the regulations of the stock exchange.
TCL technology announcement shows that as of the evening of September 1, the number of shares held by Li Dongsheng has not changed.
Li Dongsheng and his concerted actors hold a total of 1.158 billion shares of the company, accounting for 8.56% of the company's total share capital, and are the company's largest shareholder.
What are the consequences of illegal shareholding reduction?
Article 13 of the regulations shows that if the directors, supervisors, and senior executives fail to reduce their shareholding in accordance with these regulations and the rules of the stock exchange, the stock exchange shall take regulatory measures such as written warnings and disciplinary measures such as notification of criticism and public condemnation, depending on the circumstances; , The stock exchange should prohibit the relevant securities account from reducing shares within 6 months or 12 months through disposal measures that restrict trading.
Li Dongsheng said that if he bought back the stock immediately, it would constitute another violation. Why?
Article 47 of the "Securities Law" stipulates that directors, supervisors, senior managers of listed companies, and shareholders holding more than 5% of the shares of the listed company shall take the company’s shares six months after the purchase. If it is sold within six months after the sale, or purchased again within six months after the sale, the proceeds from this shall belong to the company, and the company’s board of directors shall recover the proceeds.
In addition, Article 11 of the "Administrative Rules on the Shares of the Company’s Shares Held by Directors, Supervisors and Senior Management Personnel of Listed Companies and Their Changes" states that changes in the company’s shares held by directors, supervisors and senior management personnel of listed companies shall be based on this fact. Within 2 trading days from the date of trading, it shall be reported to the listed company and the listed company shall make an announcement on the stock exchange website.
Lawyer analysis: subjectively non-maliciously reduce holdings or deal lightly
What are the in-depth considerations behind Li Dongsheng's selling and buying?
In response, Yin Chuanzhi, a partner in the financial and securities department of Zhejiang Haihao Law Firm, told reporters, “After learning that he sold 5 million shares by mistake, Li Dongsheng faced two choices, one is to maintain the status quo, the other is Another illegal operation to buy back the stocks, these two operations convey completely different messages to the market."
Yin Chuanzhi said that the directors and supervisors of listed companies need to disclose in advance before they reduce their shareholdings. The misoperation of selling shares violated the regulations once. If the stocks are bought back at this time, short-term trading will be involved, and the regulations will be violated for the second time.
He further analyzed that the reason why Li Dongsheng took the risk of violating the regulations had to buy the stocks back, or because if he simply sold the stocks and stopped operating, there would be many speculations in the market that Dong Jian Gao had no confidence in listed companies. Or maliciously reduce holdings, and if the stock is bought back, Li Dongsheng is just a misoperation, and there is no malicious intention to reduce holdings subjectively.
Regarding penalties, Yin Chuanzhi said that the supervision will investigate the matter. If it is found that Li Dongsheng did not subjectively and maliciously reduce holdings, but was just a misoperation, there is a chance that he will be dealt with lightly.
Beijing News Shell Finance reporter Lin Zi