CSRC Fines Chinese Investor USD8 Million for Manipulating Stocks at 15 Firms

CSRC Fines Chinese Investor USD8 Million for Manipulating Stocks at 15 Firms

Chen Juan

Date: Thu, 12/07/2017 - 13:53 / source:Yicai
CSRC Fines Chinese Investor USD8 Million for Manipulating Stocks at 15 Firms
CSRC Fines Chinese Investor USD8 Million for Manipulating Stocks at 15 Firms

(Yicai Global) Dec. 6 -- China’s top securities regulator has fined a private investor CNY54.33 million (USD8.2 million) after he tried to manipulate share prices at 15 listed companies.

Liao Guopei, 42, lives in the wealthy southern city of Foshan in Guangdong province. He used 28 securities trading accounts under his control to rig share prices between 2014 and 2016 and earn CNY18.8 million in profit, which the China Securities Regulatory Commission (CSRC) will confiscate, it said in a penalty notice.

The document detailed how Liao manipulated the share price at Sinosteel Anhui Tianyuan Technology Co. [SHE:002057] over two consecutive days starting Oct. 21, 2015, skyrocketing it 10.03 percent and hitting limit up, despite the Shenzhen Component Index falling 5.87 percent that day. When investors flocked to buy the stock the next day, the fraudster sold off his shares to profit CNY8.15 million. He used the same technique at the other companies, making the occasional loss but for the most part raking cash in.

The CSRC also published Liao’s defense. He claimed he invested in the stocks because he was optimistic about their value, and had no intention to influence prices -- he believed this was evidenced in the losses he made. As he cooperated with the investigation and ceased to make such transactions during the probe, he requested the regulator mitigate penalties.

The regulator said the facts clearly show he manipulated the share prices but considered his cooperation with the case and eased up on the penalties.

Below is a list of the stocks Liao manipulated and how much he profited or lost on them, per CSRC data.

Sinosteel Anhui Tianyuan Technology Co. [SHE:002057]

Profit: CNY8,150,200

Xiamen Anne Co. [SHE:002235]

Profit: CNY93,852.45

Myhome Real Estate Development Group Co. [SHE:000667]

Profit: CNY 374,430.84

Sichuan Sunny Seal Co. [SHE:300470]

Profit: CNY18,409.23

Shanghai Dragon Net Technology Co. [SHE:300245]

Profit: CNY4,204,000.69

Jiangnan Mould and Plastic Technology Co. [SHE:000700]

Profit: CNY2,699,211.75

Xinjiang Ba Yi Iron & Steel Co. [SHA:600581]

Loss: CNY177,390.55

Yaxia Automobile Corp. [SHE:002607]

Profit: CNY287,499.86

Changsha Tongcheng Holdings Co. [SHE:000419]

Profit: CNY178,350.05

Zhejiang Rifa Precision Machinery Co. [SHE:002520]

Loss: CNY31,029.53

Chongqing Jianfeng Chemical Co. [SHE:000950]

Profit: CNY 1,252,781.13

Guangxi Guitang Group Co. [SHE:000833]

Profit: CNY277,273.68

Hengdian Group DMEGC Magnetics Co. [SHE:000833]

Loss: CNY6,331,935.62

Jinzi Ham Co. [SHE:002515]

Profit: CNY5,726,740.28

CECEP Solar Energy Co. [SHE:000591]

Profit: CNY2,114,153.22

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Keywords: Liao Guopei, China Security Regulatory Commission, Stock Manipulation