As the regulators continue to crack down on illegal actions in the securities market, many cases have gradually surfaced. In June, the China Securities Regulatory Commission and the Fujian Securities Regulatory Bureau issued three "Administrative Punishment Decisions" for private equity "rat warehouses," with a fine of up to 700,000 yuan.
Analysts pointed out that the current supervision of the private "Rat" warehouse penalties have significantly increased the penalties, from the original punishment in accordance with administrative regulations to now according to the Fund Law to punish.
Three privately funded "rat warehouses" were investigated.
In June of this year, the Fujian Securities Regulatory Bureau conducted a focused crackdown on the “Rat Rat” of private equity, and issued two “Administrative Punishment Decisions” for private “Rat Rat”.
The "Administrative Punishment Decision" issued by the Fujian Securities Regulatory Bureau on June 15 showed that Yan Caiguang involved in the case was a "post-90s". In October 2016, he entered the private equity fund called Hong Teng Assets and started on November 26, 2016. He is the fund manager and trader of two private equity fund products, "Hong Teng No. 1" and "Hong Teng Wealth," responsible for investment decisions, order transactions, risk control, and information on relevant transactions.
However, not long after entering the service, Yan Caiguang began to buy stocks with funds he managed. From November 28, 2016 to April 25, 2017, Yan Caiguang operated the securities account opened by the securities business department of Jinye Quanan Road, Xingye Securities, before, at the same time, or later than “Hong Teng No. 1” and “Hong Teng”. "Fortune" bought six stocks such as the "Three-Five-Five-Nine-Five-Net", with a total transaction value of RMB 987,723,000 and a profit of RMB 482.68. Although Yan Caiguang earned only 482.68 yuan in the mouse warehouse, it also caused Yan Caiguang to pay a fine of 100,000 yuan.
Similarly, Fujian Securities Regulatory Bureau issued the "Administrative Punishment Decision" issued on June 11th. Fujian Zhiyuan Asset Management Co., Ltd. is the fund manager of two private equity funds, "Jian Die No.1" and "Jian Die II." A certain level is the investment manager of two funds, responsible for specific investment decisions and order transactions; Wan Xingyi is an employee of Zhiyuan Assets Company. Wang Mouping and Wan Xingyi will discuss "Jian Die 1" and "Xie Die II". No. "The trading decision of the securities account, Wan Xingyi has operated related stock transactions and has been informed of related transaction information. From September 19, 2016 to March 13, 2017, Wan Xingyi operations opened a security account in the securities business department of Sanyin Liedong Street of Industrial Securities and the securities sales department of Sanming Liedong Street of Haitong Securities, prior to or during the same period. Later, three stocks such as "Eastern Day Rising" were bought on "Jie Die No. 1" and "Jian Die II", and the total purchase amount was 479.15 million yuan.
In addition, the reporter of “Daily Economic News” noted that on June 5, the Securities Regulatory Commission issued the “Administrative Punishment Decision Statement” for Liu Xiaodong, Yang Wei, and Li Rubai, and Liu Xiaodong, the controlling shareholder of Shenzhen Vande Fund, was the current investment manager. Yang Wei and Shi RenFund transactionsThe three members of the club, Li Rubai, sang a drama of "Rat Rat". During the period from May 1, 2015 to May 31, 2016, the three individuals jointly operated the "Liu Xiaodong" account and performed the stock operation earlier, in sync with, or later than, the transactions in the Fande Fund Group account. "Liu Xiaodong" traded a total of 326 stocks in two securities accounts with a turnover of up to 902 million yuan. "Liu Xiaodong" shares 69.63% of the same number of trading transactions with the Fande Fund Account Group. However, the total loss of the three-person “rat store” behavior was as high as 2.037 million yuan.
Increased penalties under the fund law
It is worth noting that the regulator has also significantly increased the penalties for the private "Rat Rat" case. For example, the administrative penalty decision issued by the China Securities Regulatory Commission to Liu Xiaodong, Yang Wei, and Li Rubai shows that the above three behaviors violate Article 1 of Article 123 of the Fund Law. Twenty-third of the Interim Measures for the Supervision and Management of Private Equity Funds Article (5) of the relevant provisions of the article, constitutes the use of undisclosed information to trade illegal stocks, and its order to correct, a total fine of 1 million. Among them, Liu Xiaodong was fined 700,000 yuan, and Yang Wei and Li Rubai were fined 200,000 yuan and 100,000 yuan respectively.
"Daily Economic News" reporter noted that according to the "Fund Law" penalties for private equity "rat warehouse" have been widely concerned about by the market. The above-mentioned Wan Xingyi “Rat Rat” case and Yan Caiguang’s “Rat Rat” case have also been found to be in violation of the first paragraph of Article 123 of the Fund Law and Article 23(5) of the “Privacy Fund Management Measures”. According to regulations, the amount of fines for individual entities is 100,000 yuan. In the case of Shenzhen Hengjian Yuanzhi Hu Zhiping’s “Rat Rat” case and Beijing Himalayas asset Wu Gang’s “Rat Rat” case, which were announced in the middle of last year, the regulators punished the involved persons according to the “Privacy Fund Management Measures”, and the fines were all 30,000 yuan. yuan.
For this, industry insiders told the "Daily Economic News" reporter, according to the "Fund Law" punishment private equity "rat warehouse" behavior, undoubtedly make the private equity agency personnel "rat warehouse" illegal costs rose dramatically. The current supervisory level has severely cracked down on the "rat rator" behaviors of securities practitioners, acting as a proxy for wealth management and insider trading, and has played a certain role in purifying the market, and has also hit the market speculatively to a certain extent. Speculative psychology plays a deterrent role.