CSRC FINES TRADER 1.17B YUAN
Punished over domestic trades and for manipulating stocks through Shanghai-HK link
CHINESE regulators seem to have run out of patience with Tang Hanbo.
The China Securities Regulatory Commission (CSRC) on Friday ordered Tang to pay a total of 1.17 billion yuan (RM753 million) in two cases of stock market manipulation, one of which was the first to involve trading through the stock connect between the mainland and Hong Kong.
Tang, 43, has been punished for illegal trading at least twice before. But it appears his previous penalties from the CSRC, which include 39 million yuan in 2014 and 15 million yuan in 2015, weren’t enough to deter his bad behaviour.
On Friday, Tang, a Chinese national based in the city of Shenzhen, was ordered to pay 251 million yuan for allegedly using the link between the Shanghai and Hong Kong exchanges to manipulate a Shanghai-listed stock, Zhejiang China Commodities City Group Co. He was also hit with 925 million yuan in fines and disgorgement over domestic trades carried out from December 2014 to April 2015.
“It seems to be the record fine imposed by CSRC on individuals by amount so far,” said Eric Liu, a partner at Zhao Sheng Law Firm in Shanghai.
The penalties imposed on Tang are smaller than the 3.47 billion yuan the CSRC plans to impose on Xian Yan, a former controller at Guangxi Future Technology Co. The regulator would penalise Xian for suspected violations on information disclosure and stock manipulation, spokesman Zhang Xiaojun said at a briefing on February 24. The penalties haven’t been officially announced by the CSRC.
In the Hong Kong-related penalties, Tang was fined 209 million yuan over trading in Zhejiang China and told to give up illicit gains of 42 million yuan.
Fellow trader Wang Tao, who couldn’t be reached for comment, was given a 600,000 yuan fine over the transactions.
Both traders have the right to appeal.
In the other case against Tang, the CSRC claimed that he and four of his relatives manipulated mainland stocks using seven domestic accounts.
The regulator issued a penalty against the five accused individuals totalling 990 million yuan.
In December, Tang filed a judicial review in the Hong Kong High Court to rule that the Securities and Futures Commission’s (SFC) seizure of trading data from his home was unlawful. The SFC had share the information seized with mainland officials.
The CSRC said in the stock connect case Tang and Wang allegedly engaged in practices that included spoofing, manipulating opening and closing prices, and self-trading.
From February 4 to April 26, 2016, their trading accounted for more than 10 per cent of the stock’s daily volume.
In 10 days during that period, their activity was more than 20 per cent of the market in the shares.