BEIJING, Aug. 12 (Xinhua) -- The Chinese securities watchdog has announced punishments for a market manipulation case.
Que Wenbin, the controlling shareholder of pharmaceutical firm Hengkang Medical Group Co., Ltd., conspired with an asset management company to drive up Hengkang shares and reduce his holdings at high prices, the China Securities Regulatory Commission (CSRC) said in a statement.
The CSRC found Que took advantage of his position to manipulate Hengkang's information disclosure by controlling the timing of good news, exaggerating its R&D capacity and hiding unfavorable messages, which misled investors and affected the prices.
Apart from the illegal gains confiscated, Que was fined another 3 million yuan (more than 400,000 U.S. dollars).
Que's accomplice, Xie Fenghua of Diecai Asset Management (Shanghai) Co., Ltd. received a lifetime ban in the equity market and was fined 600,000 yuan. Diecai had to forfeit 48.58 million yuan of gains and received a penalty of 97.16 million yuan.
In another case, the CSRC punished individuals involved in insider trading related to Ningbo Orient Wires & Cables Co., Ltd.
The CSRC has been toughening supervision and punishment of illegal market activities this year. In the first half of 2017, the CSRC has given out fines totaling 6.36 billion yuan, up 149 percent year on year.