Financial News
Written by: Zhang Weilun
2020-09-14 19:43
Last update date: 2020-09-14 19:43
In response to the prosecution filed by the Securities Regulatory Commission earlier, the Eastern Magistrates' Court ruled that Ke Wenhua was guilty of false trading in Hengfu Holdings (0643).
Ke Wenhua admitted holding and was fined 30,000 yuan and was ordered to pay the investigation fees of the Securities Regulatory Commission.
An investigation by the China Securities Regulatory Commission found that Ke Wenhua began hoarding Hengfu shares in May 2011, and that most of his holdings in Hengfu were bought at a price ranging from 0.48 to 1.3 yuan on or before September 2011.
On September 4, 2012, Ke Wenhua traded Hengfu shares through six securities accounts controlled by him. This move pushed Hengfu's share price to 0.6 yuan, which was 50% higher than the closing price of 0.4 yuan the day before.
On the same day, Ke Wenhua generated a trading volume of 58.6 million Hengfu shares, equivalent to 3,000 times the average daily trading volume of the past 10 trading days.
As a result, Ke Wenhua artificially pushed up Hengfu's stock price through false transactions and sold his holdings, thereby reducing his total trading losses by RMB 887,200.
Securities Regulatory Commission
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