(Yicai Global) March 13 -- The China Securities Regulatory Commission and the Securities and Futures Commission of Hong Kong have busted the country's first cross-border market manipulation case via the Shanghai-Hong Kong Stock Connect, imposing the maximum administrative penalties.
The case involves the cross-border manipulation of Zhejiang China Commodities City Group Co. (ZCCC) [SHA:600415] by Tang Hanbo, the CSRC said on March 10.
In the case, Tang and Wang Tao, his trader, manipulated ZCCC stock, which is reserved for northbound trading under the Shanghai-Hong Kong Stock Connect. They pushed up intraday trading share prices and bought shares at low prices after selling them off. The transactions were made through three Hong Kong accounts and one mainland account and reaped illicit gains of more than CNY41.88 million (USD6.1 million), the CSRC said.
Tang has also been involved in other market manipulation cases. Tang and his traders including Yuan Hailin, Yuan Chao and Tang Yuanqi had manipulated Hithink RoyalFlush Information Network Co. [SHE:300033] and GCI Science & Technology Co. [SHE:002544], the CSRC said.
Tang Hanbo and Tang Yuanzi also manipulated New Hope Liuhe Co. [SHE:000876] and Hunan Boyun New Materials Co. [SHE:002297]. Tang Yuanzi was also involved in the manipulation of GF Securities Co. [SHE:000776]. Illicit profits in these cases totaled CNY250 million (USD36 million).
The CSRC, in imposing the maximum administrative penalties fined the offenders a total of more than CNY1.2 billion (USD174 million).
Both the CSRC and the SFC will work more closely in future in strict accordance with Hong Kong and mainland China laws to crack down on illegal and irregular cross-border activities to safeguard the stable operation of their capital markets, the CSRC said.