Manipulating the hot topic of "computing power" to control the pace of information disclosure! Jiangyin Hengrun Heavy Industries (603985.SH) former chairman Cheng Lixin and others were fined 140 million for manipulating stock prices.

The China Securities Regulatory Commission (CSRC) disclosed an administrative penalty decision today, in which Jiangyin Hengrun Heavy Industries (603985.SH) former chairman Cheng Lixin, as well as Ding Jian and Zhang Yazhou conspired to manipulate the stock price of Jiangyin Hengrun Heavy Industries. They were fined over 140 million yuan by the CSRC and were also imposed with a ban from entering the securities market. According to the CSRC investigation, Cheng Lixin, the then second-largest shareholder and legal representative and chairman of Jiangyin Hengrun Heavy Industries, conspired with Ding Jian and Zhang Yazhou to manipulate the stock price in mid-June 2023. Through Ding Jian's introduction, Cheng Lixin and Zhang Yazhou met, and the three of them conspired to hype the "mining power" hot topic by controlling the content, timing, and rhythm of information generation and disclosure. In actual operation, Cheng Lixin held "Jiangyin Hengrun Heavy Industries" stock in the name of others. Cheng Lixin planned to sell the "Jiangyin Hengrun Heavy Industries" stock in 2023 and signed a "Trust Agreement" with Ruan on July 16, 2023, for the private placement product to take over 24,952,563 shares of "Jiangyin Hengrun Heavy Industries". Subsequently, from July 29 to November 8, 2023, Cheng Lixin, Ding Jian, Zhang Yazhou, and others manipulated the company to release four pieces of positive information, boosting the stock price of "Jiangyin Hengrun Heavy Industries". During the aforementioned period, the stock price of "Jiangyin Hengrun Heavy Industries" rose by 96.65%, while the Shanghai Composite Index fell by 6.86%, deviating by 103.51%, and the Wind Power Industry Index fell by 10.30%, deviating by 106.95%. The increase in the stock price of "Jiangyin Hengrun Heavy Industries" was significantly higher than that of the Shanghai Composite Index and the industry index during the same period. This penalty decision detailed the information release situation of Cheng Lixin, Ding Jian, and Zhang Yazhou: 1. Failure to truthfully and completely disclose the establishment of the mining power subsidiary company On July 29, 2023, Jiangyin Hengrun Heavy Industries issued an announcement to establish a subsidiary, Shanghai Run Liushi Technology Co., Ltd. (referred to as Shanghai Run Liushi). Following an investigation, apart from the joint venture operations contract, Cheng Lixin and Zhang Yazhou also signed an agreement, while Jiangyin Hengrun Heavy Industries did not fully and accurately disclose the agreement. 2. Failure to truthfully and accurately disclose the situation of the subsidiary's equity acquisition agreement On September 26, 2023, Jiangyin Hengrun Heavy Industries issued a... Buy at a low price to boost stocks and maintain its value. During this period, the account group made a profit of 20,523,277.70 yuan.The China Securities Regulatory Commission (CSRC) has determined that Three's engaged in market manipulation in violation of the Securities Law. Although the three individuals presented arguments against being punished, such as the absence of "collusion" and the authenticity of the computing power business, these arguments were not accepted. The CSRC has decided to order the three individuals to dispose of the illegally held securities in accordance with the law, confiscate illegal gains of 20,523,277.7 yuan from Ding Jian, and impose fines totaling 123,139,666.2 yuan, which are to be borne by Cheng Lixin, Ding Jian, and Zhang Yazhou respectively. Additionally, considering the seriousness of their illegal behavior, Cheng Lixin and Ding Jian are subject to an 8-year ban from the securities market, while Zhang Yazhou is subject to a 3-year ban. During the ban period, they are prohibited from engaging in securities business, securities services, or holding positions as directors, supervisors, or senior managers of the original issuer, either at the original organization or any other institution. Due to the serious impact of Cheng Lixin and Ding Jian's illegal behavior on securities trading order, the CSRC has imposed a 5-year ban on them from the securities market. During the ban period, except for the circumstances specified in Article 6, paragraph 1 of the Securities Market Ban Regulations, they are prohibited from directly or indirectly trading in all securities listed or listed on the exchange under a pseudonym or in the name of another person. This article is a reprint from "Cailianshe". Edited by GMTEight: Chen Xiaoyi.