The company earned 1 billion in the stock market for two months and was fined 5.6 billion.

CCTV News: Recently, CCTV reporters, together with the Inspection Bureau of the China Securities Regulatory Commission, successfully investigated and dealt with a huge stock manipulation case after months of unannounced visits.

After investigation, Beibadao Group and its actual controller used 1 billion yuan of funds to manipulate the stock prices of several sub-new shares in a short period of two months, and made a profit of 1 billion yuan. The CSRC intends to impose a fine of 5.67 billion yuan on the enterprise and its actual controller, and the case has become the largest stock market manipulation case investigated by the CSRC.

Company involved

Company involved

From February to May, 2017, Beibadao Group and its actual controllers set up and controlled a trading team with a clear division of labor, raised billions of yuan through a number of fund intermediaries, used 301 securities accounts, and used abnormal trading techniques such as frequent reverse transactions, intraday price hikes, and rapid daily limit closures to speculate on multiple sub-new shares, which was suspected of manipulating the market.

Inspectors of CSRC:After our preliminary investigation, we found that the related accounts involved were actually manipulated and controlled by a Beibadao Group, a private logistics group in Xiamen, whose main business is railway transportation.

Small-cap stocks with "ferocious" tactics have experienced ups and downs.

In February 2017, the sub-new shares of several banks led by "Jiangyin Bank" and "Zhangjiagang Bank" were collectively speculated, which caused great concern in the market.

A stock that has been manipulated for speculation.

A stock that has been manipulated for speculation.

Inspectors of CSRC:Take the behavior of Zhangjiagang as an example. It started to be listed on January 24th, and then we, the main manipulator, started to manipulate it in early February, that is, it just went on the market for a few days, using their capital advantages and shareholding advantages to earn chips in the hands of retail investors, and then after their chips reached a certain level, they attracted the follow-up funds in the market, and then they suddenly removed their chips, so that they could easily make quick money.

Second, raise huge sums of money to fund the one-stop service of the company

In the investigation, the inspectors of the CSRC also found that the principal of Beibadao Group’s one billion yuan was not their own, and they all found the so-called — — Fund-raising company.

Inspectors of CSRC:Mainly use some underground fund-raising intermediaries in Jiangsu and Zhejiang provinces to contact the fund-raiser. The fund-raiser will give these accounts and his own money to these fund-raising intermediaries, and then the fund-raising intermediaries will give them to the Beibadao Group, and then the Beibadao Group will use these accounts to manipulate the market. These fund-raisers here will get 10% of the fixed annualized income, and then the fund-raising intermediaries will generally get about 1% of the intermediary service fee, and the remaining excess income will be.

There are many accounts involved in the "busy" trading.

During the investigation, the inspectors of the CSRC saw rows of tables and chairs and some computers that had not been evacuated before in a villa of more than 1,000 square meters. It is reported that this is the private trading hall of Beiba Road. At the busiest time, at least 100 computers and more than 10 traders were engaged in illegal trading, and each trader controlled two or three stock accounts.

Inspectors of CSRC:In two months’ time, we just went to more than ten provinces and cities to visit the owners of these nominal accounts involved to determine whether they are using this account themselves or giving it to others.

Although the sources of funds are all over the world, the illegal funds earned by manipulating the stock market eventually fell into the private accounts of more than 10 financial personnel of Beibadao Group.

The CSRC interviewed the suspect for violent resistance to the law.

company personnel

Employees of the company involved violently resisted the law.

After basically grasping the criminal facts of Beibadao, the inspectors of the CSRC arrived at Beibadao Company, but the relevant personnel of the case refused to talk.

There is a conflict between the inspector of CSRC and the object of investigation.

The two ladies in the camera, one is the company treasurer and the other claims to be the legal representative. When the inspectors of the CSRC obtained the company’s financial information, they actually tore up the documents and even threw them out of the window.

Fined a fine of 5.67 billion yuan from the CSRC.

Inspectors of CSRC:The most typical harm of this case is that it has affected the fairness and justice of this market and caused great fluctuations in the market. I will plan to impose a top penalty on its Beibadao Group. So far, it is the case with the highest amount of administrative penalty imposed by the CSRC.