Three People Fined Over 18.3 Million for Insider Trading Combined

This article is reprinted from Haixia Daobao

Striking again! Xiamen Securities Regulatory Bureau issues two consecutive fines

Three individuals involved in insider trading fined and confiscated over 18.3 million yuan in total

Daobao News (Reporter Wu Qiang) Targeting insider trading, Xiamen regulatory authorities have struck hard again! On March 20, the Xiamen Securities Regulatory Bureau officially released two administrative penalty decisions, imposing penalties on two insider trading violations involving three individuals, with a total fine and confiscation amount exceeding 18.3 million yuan. Among them, the case of Wang Sheng alone resulted in fines and confiscation exceeding 13.98 million yuan, setting a new record for insider trading penalties in Xiamen’s recent capital market.

Confiscated profit of 3.4957 million yuan

And fined 10.4872 million yuan

According to the administrative penalty decisions, both cases revolve around the same listed company’s controlling shareholder and actual controller change insider information. The penalty notices disclose that this insider information qualifies as a major event under the Securities Law of the People’s Republic of China, constituting insider information before it was publicly disclosed. The formation time of this information was no later than May 28, 2024, and it was only officially disclosed on November 4, 2024, with a sensitive period of over five months.

In Penalty Decision No. [2026]4, the individual Wang Sheng was heavily fined for executing insider trading alone. Investigations showed that Wang Sheng knew the relevant insider information and had contact with the insider during the sensitive period. Between August 12 and October 10, 2024, Wang Sheng bought a total of 1.5436 million shares of the related listed company, with a purchase amount of 2.5152 million yuan, ultimately earning a profit of 3.4957 million yuan from the trades.

The Xiamen Securities Regulatory Bureau pointed out that Wang Sheng’s trading behavior showed obvious anomalies—his initial purchase timing, fund transfer timing, and contact with insiders were highly synchronized; his trading was sensitive in timing, with strong buying intent, and he sold off shortly after the insider information was disclosed, without legitimate reasons or lawful information sources. Although Wang Sheng and his agent claimed “not knowing the insider information” and “no abnormal trading,” requesting no punishment, the Xiamen Securities Regulatory Bureau’s review did not accept these defenses. Based on relevant provisions of the Securities Law, the bureau decided to confiscate Wang Sheng’s illegal gains of 3.4957 million yuan and impose a fine of 10.4872 million yuan, totaling penalties of 13.9829 million yuan.

Leak of insider information

Fined 1.35 million yuan

The other Penalty Decision No. [2026]3 involves related illegal activities of leaking insider information and insider trading. The individuals involved, Sun Mingfei and Li Nailing, were held accountable respectively.

Investigations showed that Sun Mingfei, as an insider information holder, leaked the relevant insider information to Li Nailing. After learning of the information before August 22, 2024, Li Nailing immediately began trading. Between September 12 and November 1, 2024, Li Nailing bought a total of 675,000 shares of the related listed company, with a purchase amount of 1.5851 million yuan, earning a profit of 800,200 yuan. His trading behavior also exhibited anomalies such as sensitive timing, strong buying intent, and quick liquidation after the information was disclosed, with no legitimate reasons or lawful information sources.

Regarding their illegal activities, the Xiamen Securities Regulatory Bureau determined that Sun Mingfei violated relevant provisions of the Securities Law by leaking insider information, constituting insider trading; Li Nailing engaged in illegal acquisition and trading of insider information, constituting insider trading. Ultimately, the bureau decided to fine Sun Mingfei 1.35 million yuan, confiscate Li Nailing’s illegal gains of 800,200 yuan, and impose a fine of 2.1606 million yuan on Li Nailing, with total penalties of 2.9608 million yuan.

The Xiamen Securities Regulatory Bureau stated that the facts of the violations in both cases are fully supported by sufficient evidence, including relevant company explanations, announcements, securities and bank transaction records, interrogation transcripts, etc., forming a complete evidence chain. The bureau explicitly stated in the penalty decisions that the involved parties must transfer the fines and confiscations to the national treasury within 15 days of receiving the decision and file the payment; if they object to the penalties, they may apply for administrative reconsideration or file an administrative lawsuit within the legal timeframe. During reconsideration and litigation, the penalties will not be suspended.