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Share buyers charge pair over price manipulation
By Lydia Chen |
April 14, 2011, Thursday
|
Online Edition
Online Edition
A Beijing court has accepted the appeals from 18 individual stock investors to demand about 1.36 million yuan (US$210,000) in total compensation from two former shareholders of CNNC Hua Yuan Titanium Dioxide Co for alleged stock price manipulation.
The Beijing No. 2 Intermediate People's Court will handle the country's first civil compensation case over stock price manipulation against Cheng Wenshui and Liu Yanze, whose company used to be the second biggest shareholder of Hua Yuan, a firm that is listed in Shenzhen.
The case is seen as a follow-up punishment on Cheng and Liu, who were barred from stock trading and fined 5 million yuan by the China Securities Regulatory Commission in April 2009.
The two used six company accounts to trade shares of Hua Yuan on September 10, 2008 to drive its price from 7.39 yuan per share to 8.26 yuan.
The stock saw a plunge by the 10 percent daily cap the next day when the two started to sell shares for quick profits. Shares of Hua Yuan continued to plunge 10 percent on the third day due to their manipulation, according to a statement issued by the commission in 2009.
The two gained more than 5.8 million in profit after three trading days, the statement said.
The Beijing No. 2 Intermediate People's Court will handle the country's first civil compensation case over stock price manipulation against Cheng Wenshui and Liu Yanze, whose company used to be the second biggest shareholder of Hua Yuan, a firm that is listed in Shenzhen.
The case is seen as a follow-up punishment on Cheng and Liu, who were barred from stock trading and fined 5 million yuan by the China Securities Regulatory Commission in April 2009.
The two used six company accounts to trade shares of Hua Yuan on September 10, 2008 to drive its price from 7.39 yuan per share to 8.26 yuan.
The stock saw a plunge by the 10 percent daily cap the next day when the two started to sell shares for quick profits. Shares of Hua Yuan continued to plunge 10 percent on the third day due to their manipulation, according to a statement issued by the commission in 2009.
The two gained more than 5.8 million in profit after three trading days, the statement said.
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