A stockholder controls 71 accounts and makes 223 million illegal profits

　　Controlling 71 securities accounts and manipulating 4 stocks, one shareholder was fined 446 million yuan.

　　On December 9, the Red Star Capital Bureau learned from the official website of the China Securities Regulatory Commission that the China Securities Regulatory Commission recently announced an administrative penalty decision. Shareholder Pan Rizhong manipulated 4 stocks by controlling 71 securities accounts, which violated the relevant provisions of the Securities Law and constituted The act of "manipulating the securities market".

A total of 223 million yuan of illegal income was confiscated, and a fine of the same amount was imposed, with a total fine of 446 million yuan.

　　According to the China Securities Regulatory Commission, Pan Rizhong was born in 1970 and lives in Laiyang City, Shandong Province.

From 2018 to 2019, Pan Rizhong borrowed some securities accounts by himself, and borrowed some securities accounts through Dong and Wang, and controlled and used 71 securities accounts such as "Dai Moufang".

　　Pan Rizhong's stocks include "Tiantie Co., Ltd." (300587.SZ), "Jiaao Environmental Protection" (603822.SH), "Dingjie Software" (300378.SZ), and "Rip Bio" (300119.SZ).

The Red Star Capital Bureau learned that for each stock, Pan Rizhong used more than 30 accounts, and at most one stock used 49 accounts.

　　Establish warehouses and then ship them to manipulate Tiantie shares to make a profit of 37.45 million yuan

　　The China Securities Regulatory Commission also reported in detail the time and passage of Pan Rizhong's manipulation of the four stocks.

　　The first stock is "Tiantie Co., Ltd.", which is mainly engaged in the research and development, production and sales of rubber products for railway engineering.

As of December 9, 2021, Tiantie shares reported 20.14 yuan per share, with a total market value of 12.648 billion yuan.

　　During the 43 trading days from December 2018 to March 2019, Pan Rizhong controlled the use of 31 accounts and used various methods to influence the trading price and volume of "Tiantie", with a profit of 37.45 million yuan.

　　How did Pan Rizhong manipulate the stock price of Tiantie shares?

According to the Whereabouts Penalty of the China Securities Regulatory Commission, the first 41 trading days were the stage of opening up positions.

　　The account group controlled by Pan Rizhong bought 9.638 million shares, with a purchase transaction value of 206,091,400 yuan, sold 697,000 shares, and a sale transaction value of 15.512,300 yuan.

On 16 trading days, the account group holds "Tiantie shares" accounting for more than 5% of the total circulating share capital.

　　The Red Star Capital Bureau found that during this period, the share price of "Tiantie" rose from 15.84 yuan per share to 27.71 yuan per share, an increase of 74.94%.

During the same period, the GEM Composite Index rose by 12.60%, a deviation of 62.34 percentage points.

　　After that, Pan Rizhong took 5 trading days to ship.

During the period, the proportion of the account group holding "Tiantie shares" in the total circulating share capital decreased from 20.91% to 0.

The "Tiantie shares" share price also fell from 27.71 yuan/share to 23.46 yuan/share, a decrease of 15.34%.

Over the same period, the GEM Composite Index has risen by 7.66%, a deviation of 23 percentage points.

　　The China Securities Regulatory Commission believes that Pan Rizhong's concentrated capital and shareholding advantages have continuously bought and sold "Tiantie shares" with obvious intentions of manipulation, which caused a significant deviation between the stock price of "Tiantie shares" and the broader market index.

　　In addition, the investigation found that in the 4 trading days, the account group controlled by Pan Rizhong still had reverse behavior.

On January 31, 2019 alone, the account group inverted volume accounted for the highest market auction volume of 12.14%.

　　Manipulating three stocks in 5 months

　　Maximum of 49 accounts for one stock

　　The second stock that Pan Rizhong manipulates is called "Jiaao Environmental Protection", which is a large-scale enterprise specializing in the production of environmentally friendly plasticizers in Zhejiang Province.

The total market value of Jiaao Environmental Protection is relatively small. As of yesterday's close, it was only 3.085 billion yuan, at 42.05 yuan per share.

From January 14th to February 15th, 2019, Pan Rizhong controlled the use of 32 accounts and used various methods to influence the transaction price and volume of "Jiaao Environmental Protection", resulting in a profit of 33.644 million yuan.

　　The China Securities Regulatory Commission said in a notice that Pan Rizhong concentrated his capital advantage and shareholding advantage in continuous trading and traded between accounts he actually controlled.

　　During the 17 trading days of the opening and lifting phase, the share price of "Jiaao Environmental Protection" rose from 23.27 yuan per share to 35.37 yuan per share, an increase of 52%.

During the shipment phase, the share price of "Jiaao Environmental Protection" fell from RMB 35.37 per share to RMB 31.30 per share, a decrease of 11.51%.

　　Dingjie Software, a company that specializes in business management software, is also one of the stocks manipulated by Pan Rizhong, and it is also one of the most profitable stocks.

From March 14th to April 15th, 2019, Pan Rizhong controlled the use of 42 accounts, concentrated capital advantages and shareholding advantages for continuous trading, which affected the transaction price and transaction volume of "Dingjie Software" and made a profit of 132 million yuan.

　　From April 1st to May 22nd, 2019, the last stock manipulated by Pan Rizhong was Ruipu Biology in the veterinary biological products industry, using as many as 49 accounts to manipulate it and earning 19.37 million yuan.

　　The person claimed to be poorly educated

　　China Securities Regulatory Commission: fined 446 million yuan

　　The Securities Regulatory Commission believes that Pan Rizhong’s actions violated the provisions of the first and third paragraphs of Article 77 of the 2005 Securities Law, and constituted the provisions of Article 203 of the 2005 Securities Law. Manipulation of the securities market" behavior.

　　During the hearing process, Pan Rizhong and his agent pointed out that Pan Rizhong is not well-educated, does not understand securities trading rules and relevant laws and regulations, and is not clear about the trading methods of the stocks involved in the case.

Therefore, Pan Rizhong has no intention to manipulate the securities market.

　　However, the China Securities Regulatory Commission found after review that the party concerned, Pan Rizhong, had the subjective intent to manipulate the market, and that Pan Rizhong and his agents’ ignorance of laws and regulations and unclear nature of the transaction did not constitute a reason for exemption.

And there is no situation in which administrative punishments should be lightened or mitigated as stipulated in the Administrative Punishment Law.

Therefore, in accordance with the facts, nature, circumstances and degree of social harm of the parties’ illegal acts, and in accordance with the provisions of Article 203 of the Securities Law of 2005, it was decided to confiscate a total of 223 million yuan of illegal income and impose a fine of the same amount on Pan Rizhong. 446 million yuan was fined and confiscated.

　　Chengdu Commercial Daily-Red Star News reporter Yu Yaoqiang Yaxian