The Ren case brings three warnings, from the first generation of shareholders to being fined a lifetime ban on trading | stocks | case
Control 201 stock accounts and manipulate 16 stocks. Recently, Ren, who has been floating and sinking A-shares for more than 30 years, was investigated and tried by the China Securities Regulatory Commission for manipulating the securities market. He decided to confiscate his illegal gains of 74.1394 million yuan, impose a fine of 222 million yuan, and take lifelong measures to ban entry into the securities market.
From the first generation of shareholders to being fined a lifetime ban, the Ren case brings three warning points.
Firstly, the increasingly standardized A-share market does not allow stock price manipulators to operate smoothly. Due to the covert and diverse methods of manipulating the market, especially those who manipulate the market under the guise of market value management, it is highly confusing and difficult to detect for a while, resulting in some institutions and individuals relying on it for a long time. With the continuous upgrading of regulatory skills by regulatory authorities, these "stock price manipulation techniques" are gradually emerging. In this case, although the defendant argued that Ren's bulk trading of certain stocks was normal, through meticulous investigation, it was ultimately difficult to escape the scrutiny of regulatory oversight, revealing the essence of illegal manipulation and troublemaking behavior.
Secondly, under zero tolerance, any stock price manipulation that disrupts market order will inevitably come at a heavy cost. One important reason why market manipulation is repeatedly punished and banned is driven by interests. Cases where flipping a stock can achieve small goals have been common in the past, while the old securities law punished market manipulation behavior relatively lightly, making it a drop in the bucket compared to lucrative profits. It is important to be aware that the new Securities Law has significantly increased the severity of penalties, and regulatory authorities have repeatedly pointed out that market manipulation will be dealt with strictly, severely, and quickly. Nowadays, the frequent punishment of billions of yuan has become the norm, and this case adopts "triple punishment, lifetime ban, and criminal responsibility", setting up a warning sign for the market, warning those speculators who are eager to act and waiting for opportunities: sunny trading is the right way, and dark box operators will be punished to the point of "flesh pain".
Finally, even if there is an investment loss, as long as it is determined that there is manipulation, it is difficult to evade accountability. Manipulating stock prices is not necessarily a matter of profit, but also carries investment risks. Not to mention losing money, the legal responsibility that should be paid will not be completely cancelled. Taking this as a lesson, investment tycoons should focus their financial and energy on improving their stock selection abilities and value investing, rather than digging for loopholes and going astray. Otherwise, they may end up with a net loss of both personal and financial resources.
The harm of harming the interests of the majority, exchanging unjust gains for the few, and manipulating the market is self-evident. Disrupting the "three public" principles of the market, concealing the true supply and demand relationship of the market, distorting the allocation function of market resources, especially some high leverage manipulative behaviors, which may even trigger systemic financial risks, cannot be ignored. Recently, the Chairman of the China Securities Regulatory Commission, Yi Huiman, emphasized that "we will resolutely crack down on illegal and irregular activities such as insider trading and market manipulation, and effectively maintain a healthy and healthy market order and ecology." This once again sends a firm signal to launch a heavy attack on market manipulation.
Regulatory policies continue to strengthen, and investors should also enhance their self-protection awareness, stay away from all speculative and speculative activities, and must not "assist the tyrant". Faced with stocks that suddenly rise without fundamental support, one should be more vigilant and skeptical: is there something fishy? Can it be hype? Do not blindly follow the trend and chase after the rise; For insider information spread by so-called market makers and main forces, it is even more important to be vigilant and carefully discern, and never let oneself become a victim of insider information.
Only when regulatory authorities adhere to strict supervision, zero tolerance and no relaxation, and investors adhere to value investment and long-term investment without wavering, can we clean up the pollution, rectify the source, and create a standardized, transparent, open, dynamic, and resilient capital market.
Source/Economic Daily, original title "Stock price manipulation and insider trading must be punished"
