Suspected of manipulating the securities market, the actual controller of Jiahua Energy may face double penalties

On October 15, 2020, Jiahua Energy issued an announcement stating that the company had received a notice from the actual controller, Guan Jianzhong, that he had received a "Decision on Bail pending trial" issued by the Public Security Bureau of Jinhua City, Zhejiang Province for suspected manipulation of the securities market.

75em;">Or face double penalties

75em;">Or face double penalties

75em;">Or face double penalties

75em;">Or face double penalties

75em;">Or face double penalties

Or will face double penalties.

The China Securities Regulatory Commission found that the actual controller of Jiahua Energy, Guan Jianzhong, was previously exposed by the China Securities Regulatory Commission for his involvement in insider trading.

On July 30, the China Securities Regulatory Commission website updated an administrative penalty decision in the evening, and the China Securities Regulatory Commission imposed penalties on the insider trading of Jiahua Energy's stocks by Yin Zhangwei, then Supervisor of Meifu Petrochemical.
During the reorganization and acquisition of Meifu Petrochemical by Jiahua Energy in 2017, Guan Jianzhong, then chairman of Jiahua Energy, had intensive contact with Yin Zhangwei and was the other party in the case.

This administrative penalty decision shows that on October 26, 2017, Jiahua Energy issued the "Material Suspension Announcement", disclosing major events planned by the company.
On December 26, 2017, Jiahua Energy released the "Material Asset Restructuring Continued Suspension Announcement", disclosing that the company intends to acquire 100% equity of Meifu Petrochemical in cash.
Meifu Petrochemical’s actual controller is the company’s actual controller Guan Jianzhong.
The transaction constitutes Related transactions.
At the same time, Guan Jianzhong is also an insider.

On October 26, 2017, Jiahua Energy issued the "Announcement on Major Events Suspension", disclosing major events planned by the company.
On December 26 of the same year, Jiahua Energy disclosed that it planned to acquire 100% equity of Meifu Petrochemical in cash, and the transaction constituted a connected transaction.
On January 25, 2018, Jiahua Energy released a restructuring plan, disclosing the specific plan to acquire 100% equity of Meifu Petrochemical, and the initial price of the transaction was 2.
69 billion yuan.
However, the transaction was terminated in April 2018.

The China Securities Regulatory Commission found that Yin Zhangwei, then Supervisor of Meifu Petrochemical, and Guan Jianzhong were old friends for many years and had a close relationship.
The two often contacted and contacted each other through meetings, telephone calls, and WeChat voice calls.
The insider information of the case was disclosed many times before the disclosure of the inside information.
contact.
From September to October 2017, the two people made multiple voice calls via WeChat, and the calls occurred during the above-mentioned sensitive period of insider information, which was highly consistent with the timing of Yin Zhangwei's transaction of "Jiahua Energy".
Although Yin Zhangwei has always bought "Jiahua Energy", the transaction volume during the sensitive period has increased significantly compared with the transaction volume on other trading days.

Based on this, the China Securities Regulatory Commission believed that Yin Zhangwei’s behavior constituted insider trading, and decided to order Yin Zhangwei to deal with illegally held securities in accordance with the law, and to confiscate any illegal proceeds; and impose a fine of 300,000 yuan on Yin Zhangwei.

At present, market manipulation may face double penalties of administrative responsibility and criminal responsibility.

Attorney Li further pointed out that according to Article 192 of the new Securities Law, anyone who violates Article 55 of this law and manipulates the securities market shall be ordered to deal with the securities illegally held in accordance with the law, the illegal income shall be confiscated, and the illegal income shall be doubled.
A fine of not more than ten times; if there is no illegal income or the illegal income is less than one million yuan, a fine of one million yuan to ten million yuan shall be imposed.
If a unit manipulates the securities market, it shall also give a warning to the directly responsible person in charge and other directly responsible persons, and impose a fine of not less than 500,000 yuan but not more than 5 million yuan.

In addition, according to Article 182 of the Criminal Law, if the circumstances of manipulating the securities and futures markets are serious, they shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention, together with a fine or only; if the circumstances are particularly serious, they shall be sentenced to not less than five years but not more than ten years.
Imprisonment and fines.

Public information shows that Zhejiang Jiahua Energy Chemical Co.
, Ltd.
was formerly known as Zhejiang Jiahua Industrial Park Investment and Development Co.
, Ltd.
, which was established on January 20, 2003.
On May 11, 2011, the company as a whole was changed to "Zhejiang Jiahua Energy Chemical Co.
, Ltd.
".
At present, the company has a registered capital of RMB 1432730543 and is controlled by Zhejiang Jiahua Group Co.
, Ltd.
The company was listed on the Shanghai Stock Exchange in September 2014.
Mainly engaged in the manufacture and sale of fatty alcohols (acids), steam, sulfonated medicines, and chlor-alkali, sulfuric acid and other products.
The subsidiaries are engaged in port terminal loading and unloading, warehousing business, new energy power generation business, and hydrogen energy and hydrogenation equipment technology development and technology Service etc.