Half of Chinese listed companies could manipulate their stock prices: fund manager
A prominent Chinese equity fund manager has revealed details of a listed company manipulating its stock price and said half of China’s listed companies were involved in similar violations. On May 16, the Chinese regime announced that it was investigating the matter.
“In recent years, violators have used stock ownership, capital, information and technological advantages to conspire and manipulate the stock market,” the China Securities Regulatory Commission (CSRC) said in its May 16 announcement and its commitment to maintaining order in the capital market.
China has more than 4,000 companies listed on the Shenzhen Stock Exchange and the Shanghai Stock Exchange – the only two stock exchanges in mainland China – according to CSRC, China’s securities regulator.
ZOY Stock Investigation
ZOY Home Furnishing, a listed company based in Zhejiang, is under investigation by the CSRC. The economic disputes between ZOY and Ye Fei, the famous Chinese equity fund manager, have exposed the covert manipulation of stock prices.
Ye entered the securities industry in 1994, won the national CCTV competition organized by the China Stock Market Civil Master Competition in 2007, and managed more than 50 private equity funds in 2016, the media reported. State China Economy.
These are the audio recordings, documents and recordings of text conversations that Ye disclosed to state media Hongxing Capital News and Securities Daily, the investigation by those media in China and the public record of the stakeholder list of ZOY, who revealed the secret deal between ZOY and Ye, which was formed in March.
ZOY wanted public equity funds to buy its shares (valued at $ 4.67 million) on the Shanghai Stock Exchange, which would raise its stock price, and hired brokers to do just that.
Pu Feidi, a broker from Beijing, hired Liu Peng from Qingdao to make the deal with Ye by paying him 6.5% of the stock’s value as compensation. Six percent of the share’s value was to go into the personal accounts of the public equity fund managers who arranged the purchase, and Ye would get the remaining 0.5 percent.
Ye then subcontracted the transaction to Guan Xuan, a director at Hengtai Securities. Guan did not arrange Hengtai to buy the shares, but subcontracted the deal to managers of public equity funds Minsheng Securities and Tianfeng Securities.
On March 31, Minsheng Securities purchased $ 2.33 million of ZOY shares. However, Tianfeng Securities did not buy any because the ZOY share price fell to 10% and the exchange stopped all trading in ZOY shares on that day.
Therefore, Pu refused to pay Ye on April 1. You then grabbed Pu’s identity card and bank cards in Shenzhen City where they met. On the evening of April 1, Ye and Pu went to a police station where Ye returned the ID card and bank cards, and Pu signed a paper promising to pay Ye.
You harassed Pu to pay him, but you got nothing. On May 14, Ye asked ZOY to pay him by posting a note on the Chinese social media platform Weibo where Ye has over a million subscribers.
Broker Chen Qingbo quickly contacted Ye to ask him to delete the related messages and to promise him that he would ask ZOY to pay him.
However, Chen did not resolve Ye’s problem, and ZOY took legal action against Ye for libel. Out of anger, Ye spoke to the media and released some of the evidence he gathered.
After the CSRC announced it would investigate ZOY, all related organizations broke their silence and denied being involved in the case.
Broker Liu Peng said he won nothing in the deal and only built the connection between Pu and Ye. Pu declined to comment. Guan quit his job and remained silent. Chen claimed he was not part of the deal, and in fact, he helped resolve the issue.
No more crimes
The CSRC said in a May 16 announcement that the commission had investigated 65 similar cases since 2020.
You posted on Weibo on May 14: “You [police] may hold five tenths (sic) of the chairmen and their secretaries of listed companies. I can guarantee they are not innocent. “
You’ve posted in the last few days that he has several hundred gigabytes of data, listing the crimes of various companies. He said he might exhibit some in the future.
Chinese media The Paper reported on May 18 that the so-called management of market value in the Chinese securities industry includes many illegal manipulations, which control stock prices and corner the investments of minority shareholders.