At the time of the incident, there was still a loss with a trading volume of billions of yuan. The deputy director of a securities company in Shanghai used insider information to speculate in stocks of the Shanghai People's Procuratorate | Crime | Information
Recently, the Shanghai People's Procuratorate released the "2022 Shanghai Financial Prosecution White Paper", along with typical cases of financial crimes handled by procuratorial organs in recent years. This includes the first securities crime case handled by a supervisory authority in Shanghai.
From May 2015 to December 2019, Liu, while serving as the Deputy Director of Equity Investment Department at a certain Shanghai Securities Asset Management Co., Ltd., used his position in managing a certain collective asset management plan to obtain undisclosed information. Through the securities accounts of others he actually controlled, he issued instructions to trade stocks three times within two years before, during, or slightly later than the aforementioned collective asset management plan, converging to buy or sell more than 400 identical stocks, with a cumulative trading amount of hundreds of millions of yuan. As of the incident, Liu was in a loss making state.
According to Article 31 of the Implementation Regulations of the Supervision Law of the People's Republic of China, the supervisory authorities shall investigate other crimes involving public officials in the exercise of public power in accordance with the law, including the crime of breaking trust and damaging the interests of listed companies, the crime of using undisclosed information for trading, and the crime of luring investors to buy and sell securities and futures contracts. After arriving at the case, Liu pleaded guilty and pleaded guilty to punishment.
After the case was transferred to the Second Branch of the Shanghai People's Procuratorate for review and prosecution, the prosecutor in charge believed that securities crimes are typical statutory offenses, and only acts that violate pre-existing administrative regulations can be subject to criminal punishment. However, current laws do not limit that such crimes must be subject to administrative recognition or punishment before criminal punishment can be imposed. Liu's behavior has violated the preceding administrative regulations such as the Securities Investment Fund Law of the People's Republic of China and the Measures for the Administration of Private Asset Management Business of Securities and Futures Operating Institutions, and has met the standards for criminal prosecution. He should be held criminally responsible in accordance with the law.
After being prosecuted by the Second Branch of the Shanghai People's Procuratorate, last year, the court sentenced Liu to one year in prison, suspended for two years, and fined him 200000 yuan for the crime of using non-public information for trading.