mobilegameearncrypto| Insider trading confiscated a small target, and the source of the leak was IDG boss

Source: Securities industry experts

In "anything is possible" A-shareMobilegameearncryptoInsider trading may be commonplace and regulatory penalties are taken for granted. However, the newly disclosed regulatory letter shows that the source of the leak is the tycoon of the investment community.

It is strange to increase the limit in advance.

The supervision letter from the Jiangsu Securities Regulatory Bureau disclosed the violation of the insider trading by Wu Xuhang of Jiangsu Tongrun equipment Technology Co., Ltd. (referred to as: Tongrun equipment).

In other words, on September 17, 2022, Tongrun equipment Gu Moubin invited Lu and Guotai Junan Qin of Zhejiang Zhengtai Electric Appliance Co., Ltd. (hereinafter referred to as: Zhengtai Electric Co., Ltd.) to formally meet in Suzhou to discuss matters related to the transfer of control of Tongrun equipment. In the following two months, after many discussions and communication, the details were finalized.

On November 16, 2022, the share price of Tongrun equipment rose by the daily limit. The three parties provisionally decided to have an interview that night, and the acquisition memorandum was drafted and signed on the spot. The next day, Tongrun equipment issued a "suspension notice on planning the change of control of the company", and began to suspend trading on the same day. On November 22, Tongrun equipment issued a "suggestive announcement on planning major asset restructuring", further revealing that the transaction consists of two parts: control transfer and asset acquisition, and that control transfer and asset acquisition are prerequisites for each other.

From the time node, the suspension announcement has not yet been issued on November 16, 2022, three aspects of talk has not yet been held, and the stock price of Tongrun equipment has been "moved by the wind". If there is no information leakage, I am afraid no one will believe it.

So where on earth did the inside information come from? This question has been answered in this regulatory letter.

Strategic investment leads "leakage"

In the list of insider information reported by Tongrun equipment to the Shenzhen Stock Exchange, there is a name, Yu Mouhua.

Its public identity is Aiqi Investment Consulting (Shanghai) Co., Ltd. (referred to as: Aiqi Investment) investment partner. And Aiqi Investment is the strategic investor in the transfer of control of Tongrun equipment and major asset restructuring, and Zhengtai Electric Appliance jointly transferred part of the equity of Tongrun equipment. Yu Mouhua is also the leader of this project.

AndMobilegameearncryptoHe learned that this major merger and acquisition, there is also some "silk peeling cocoon" meaning.

On October 17, 2022, in order to carry out the full adjustment work, Yu Mouhua and his assistant Wang met with Lu and others in Zhengtai Power supply. Lu introduced some of the characteristics of the target listed company to be installed by Zhengtai Power, but did not disclose the specific name. After that, Yu Mouhua arranged for Wang Mou language to search the Internet for listed companies that met the above characteristics. Wang Mou language screening found that only Tongrun equipment met the conditions, and then locked the target.

On October 29th, 2022, Yu confirmed to Wang through Wechat the name of the listed company that Astronergy intends to install, and Wang sent a screenshot of the interface shown as "Tongrun equipment" from Oriental Fortune app to Yu.

As a result, the supervision concluded that Yu Mouhua belongs to the insider of the inside information stipulated in item 5 of Article 51 of the Securities Law, and his knowledge time is no later than October 29, 2022.

Crazy insider trading

After investigation, Wu Xuhang and Yu Mouhua have been in touch with each other since they met in 2016. During the sensitive period of inside information, Wu Xuhang and Yu Mouhua had contact on October 30, 2022.

The day after the two sides met, Wu Xuhang opened a new "Wu Mou Ming" account, together with the three stock accounts he had previously held, and made frequent actions. Sources of funding include large redemptions of bank wealth management, clearance of previously held shares, financing transactions from brokerages, and even borrowing from others. From October 31 to November 16, 2022, Wu Xuhang Control account Group unilaterally bought "Tongrun equipment", with a total transaction of 270.Mobilegameearncrypto.15 million shares, with a purchase transaction value of 23815447 yuan. All were sold after the inside information was made public, with a transaction value of 59156052 yuan.Mobilegameearncrypto.25 yuan, with a profit of 35271471.74 yuan after deducting taxes.

In half a month, the investment of 23.8154 million yuan has more than doubled, with a net profit of 35.2715 million yuan, which is simply the operation of the stock god. And who is "Yu Mouhua" who shows the way for him?

The background of the investment boss

Through industrial and commercial information, experts found that among the former partners of Aiqi Investment, there was a "Yu Xinhua". He was appointed Director and General Manager of Aiqi Investment in August 2019.

Experts learned through the official website that Aiqi Investment is owned by IDG. In the executive team section of the official website, Yu Xinhua is introduced as follows: joined IDG Capital in 2005 and participated in and led a number of investments in new energy and new materials.

After slightly flipping through the relevant announcements, experts found that the names of Aiqi Investment and Yu Xinhua appeared in the 2023 reports of at least two listed companies.

The first annual report of 688720.SH, which rang the bell not long ago, revealed that Yu Xinhua was born in 1974, served as vice president of IDG Capital Investment Consulting (Beijing) Co., Ltd. from 2006 to 2011, a partner of Aiqi Investment Consulting (Shanghai) Co., Ltd. since 2012, and has been a director of Essen since January 2023.

Huacan Optoelectronics (300323.SZ) Annual report revealed that Yu Xinhua served as a director and former chairman of the company from April 2016 to August 2023. The current chairman of the sixth board of supervisors of the company, Jiangsu Essen Semiconductor Materials Co., Ltd. (referred to as: Essen), Newnagy Holdings,Inc and other company directors.

Sure enough, he is the boss, and the connoisseur is amazing.

There is no penalty of one penalty or two.

Afterwards, through the announcement of listed companies, related personnel inquiry records, Wechat records, securities account information and trading streams and other evidence to prove, supervision and identification of insider trading.

On the other hand, Wu Xuhang "shouted out his grievances" and proposed to hold a hearing. In his plea, Wu Xuhang accused Yu Xinhua of "illegally obtaining insider information" and argued that he had not engaged in insider trading and asked for exemption or mitigation.

After review, the Jiangsu Securities Regulatory Bureau refused to accept Wu Xuhang's defense. On May 13, 2024, the punishment landed: 35.2715 million yuan of illegal income was confiscated and twice the fine was imposed, resulting in a total confiscation of 105.8144 million yuan, exceeding a small target.

In this case, whether Yu Xinhua was a "deliberate leak" or an "inadvertent mistake", the expert failed to know more details.