Related News
Former exec pays for stock misdeeds
By Chen Li |
February 25, 2011, Friday
|
Print Edition
Print Edition
A former vice president of Sealand Securities Co will be barred from the stock markets for five years because of his involvement in an insider-trading case, China's securities regulator has ruled, according to a newspaper report.
Zhang Xiaojian, who was also fined 600,000 yuan (US$91,324) early this year, will be banned from the stock markets till 2016 and he will not be allowed to hold a senior position in a listed firm during the period, the China Securities Regulatory Commission said.
The CSRC said profits he made from the illegal insider trading will be seized but it didn't reveal the amount.
Zhang, 41, was said to have secretly used his brother's trading account to buy a total of 526,100 shares of Guilin Jiqi Pharmaceutical before the drug maker unveiled its reorganization plan with Sealand in December, 2006.
Zhang had been leading his company's plan to seek a back door listing via Jiqi in November and was privy to the plan details, the Oriental Morning Post reported yesterday.
He bought the shares on November 14 and November 22 in his office.
The investigation into Zhang was cited as the main reason why Sealand failed to get listed for five years.
Jiqi has not traded since November 22, 2006.
In September the CSRC revoked licenses of two fund managers of Shenzhen-based Invesco Great Wall Fund Management Co for "rat trading" and also fined them a combined 2.5 million yuan.
Rat trading refers to a licensed trader exploiting a client's instructions to place similar orders ahead of the client's orders for himself and his nominees.
Zhang Xiaojian, who was also fined 600,000 yuan (US$91,324) early this year, will be banned from the stock markets till 2016 and he will not be allowed to hold a senior position in a listed firm during the period, the China Securities Regulatory Commission said.
The CSRC said profits he made from the illegal insider trading will be seized but it didn't reveal the amount.
Zhang, 41, was said to have secretly used his brother's trading account to buy a total of 526,100 shares of Guilin Jiqi Pharmaceutical before the drug maker unveiled its reorganization plan with Sealand in December, 2006.
Zhang had been leading his company's plan to seek a back door listing via Jiqi in November and was privy to the plan details, the Oriental Morning Post reported yesterday.
He bought the shares on November 14 and November 22 in his office.
The investigation into Zhang was cited as the main reason why Sealand failed to get listed for five years.
Jiqi has not traded since November 22, 2006.
In September the CSRC revoked licenses of two fund managers of Shenzhen-based Invesco Great Wall Fund Management Co for "rat trading" and also fined them a combined 2.5 million yuan.
Rat trading refers to a licensed trader exploiting a client's instructions to place similar orders ahead of the client's orders for himself and his nominees.
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