(Yicai) March 13 -- The chairman and controller of Layn Natural Ingredients has been barred from trading on China’s stock and bond markets for the next five years for colluding with others to manipulate the stock price of the Chinese maker of artificial sweeteners and natural flavors.

Qin Benjun, who is also director and general manager of Layn, has been banned from the country’s securities market for the next five years, during which time he cannot serve as a director, supervisor or senior manager of any listed firm, the company said, citing a letter sent to Qin from the China Securities Regulatory Commission.

The penalty is aimed at Qin himself and will not greatly affect the Guilin-based firm’s daily business, Layn said. No decision has been made yet as to who will replace Qin once the ban comes into force.

Qin, who owns 36.6 percent of the company, spent CNY120 million (USD16.7 million) subscribing to four private funds in 2021 that were managed by his friend Wang Yang, the CSRC said in its report, citing the results of an investigation that started in May last year.

Wang then used 28 securities accounts to speculate on Layn’s stocks from April to November 2021. Due to the large amount of capital available, Wang was able to affect the stock’s price and transaction volume, which constitutes market manipulation, the report said.

Wang has also been barred from stock and bond trading for the next five years. Both men have each been fined CNY2.1 million (USD292 million) and their illegals gains of CNY1.4 million (USD194,800) have been confiscated, the report said.

Layn’s share price [SHE:002166] dipped 0.2 percent to CNY7.04 (USD0.99) as of two p.m. today, giving it a market capitalization of CNY5.2 billion (USD723.4 million).

Editor: Kim Taylor