"Clear rules and recognize risks" case - company executives were severely punished for insider trading

Insider trading refers to the behavior of an insider of securities trading insider information or a person who illegally obtains inside information, buying and selling related securities before the inside information is made public, or leaking the information, or recommending others to buy or sell related securities.

Wang Moumou is the deputy general manager of Shanghai Zhixiang Information Technology Development Co., Ltd. (hereinafter referred to as Shanghai Zhixiang Company). In March 2014, senior officials of Zhuhai Century Dingli Communication Technology Co., Ltd. (hereinafter referred to as Century Dingli Company) and Shanghai Zhixiang Company began multiple rounds of consultations and exchanges on mergers and acquisitions and reorganization matters, and finally reached a consensus. On May 30 of the same year, Century Dingli's shares were suspended from trading. Century Dingli Company subsequently issued an announcement on a major asset restructuring, and on July 29 of the same year, announced an announcement on the acquisition of 100% of the equity of Shanghai Zhixiang Company. On July 30 of the same year, Century Dingli stock resumed trading. The defendant Wang Moumou, as a senior manager of Shanghai Zhixiang Company, did not directly participate in the relevant mergers, acquisitions and reorganization matters, but at the end of April of the same year, he learned inside information such as the possible acquisition of Shanghai Zhixiang Company by Century Dingli Company at work. On May 2, 2014, during a meeting with his brother-in-law and defendant Peng Qiang, the defendant Wang Moumou talked about the situation of some listed companies in the communications industry, including Century Dingli Company, and on the evening of the 28th of the same month, he asked Peng Qiang Make a call from home. After the securities market opened on the 29th of the same month, Sun Moumou, at the request of her husband Peng Qiang, sold all the original stocks in the stock accounts under their names, and then bought more than 200,000 shares of "Century Dingli" stock in full, with a transaction amount of A total of more than 3.61 million yuan.

Wang Moumou, as the deputy general manager of Shanghai Zhixiang Company, is an insider of securities trading insider information. During the sensitive period of insider information on the merger and reorganization of Shanghai Zhixiang Company and Century Dingli Company, Wang Moumou told the defendants Xiang Moumou and Peng Qiang of the inside information obtained at work, causing Xiang Moumou and Peng Qiang to engage in "Century Dingli Company" "The transaction volume of securities transactions was more than 4.68 million yuan, and the profit amount was more than 520,000 yuan. His behavior constituted the crime of leaking inside information. The Shanghai No. 1 Intermediate People's Court, in accordance with the provisions of the "Criminal Law of the People's Republic of China" and the "Interpretations of the Supreme People's Court and the Supreme People's Procuratorate on Several Issues Concerning the Specific Application of Laws in Criminal Cases of Insider Trading and Leaking Insider Information", charged the crime of leaking inside information. The defendant Wang Moumou was sentenced to 3 years in prison and fined RMB 520,000; the illegal gains were recovered and the shortfall was ordered to be refunded. Wang Moumou was dissatisfied and appealed. The Shanghai Higher People's Court ruled in accordance with the law to reject the appeal and uphold the original judgment.

 Insider trading is not only a securities violation stipulated in the Securities Law, but also a criminal act stipulated in the Criminal Law. Mergers, acquisitions and reorganizations are a "high-incidence area" for insider trading. People who know inside information intend to make profits, ignore the express provisions of the law, and end up behind bars. In addition, in addition to insiders of inside information, people who illegally obtain inside information by defrauding, extorting, eavesdropping, inducing, spying or using private transactions may also constitute insider trading and bear corresponding legal liabilities.