(Yicai Global) Jan. 15 -- China’s securities regulator fined the private equity investment firm Kunwu Jiuding Investment Holdings CNY100 million (USD15.45 million) and confiscated CNY500 million illegal gains after its indirectly controlling shareholder used others’ accounts in securities transactions, the company announced yesterday.

The Beijing-based firm also known as JD Capital was fined CNY600 million for using other people’s accounts in securities transactions, per its announcement. The China Securities Regulatory Commission issued a warning to Wu Gang, chairman of the firm’s controller Jiuding Group, and fined him CNY100,000 (USD15,445).

The CSRC also warned Jiuding Group and hit it with a CNY600,000 penalty for illegal information disclosure, slapped Wu with a CNY300,000 sanction and fined five directors and senior executives CNY50,000 to CNY100,000 each.

Jiuding Investment’s stock [SHA:600053] closed 0.7 percent down at CNY18.81 at noon today after hitting the 10 percent price ceiling at CNY18.68 (USD2.89) yesterday.

Qian Guorong and four other investors subscribed for Jiuding Group’s 410 million stocks in the National Equities Exchange and Quotations and publicly traded them in June and August 2014, per the announcement. Jiuding Investment controlled the transactions of their accounts and earned CNY500 million from August 2014 to May 2015. The CSRC launched its probe into Jiuding Group in March 2018.

Jiuding Investment was the country’s first listed private equity investment institution. It went public via a backdoor listing in May 2015. Jiuding Group [430719.OC] is a finance holding conglomerate listed on the NEEQ. Jiuding Group also owns the internet-based peer-to-peer finance platform Jiuxin Investment, securities firm Jiuzhou Securities, public fund Jiutai Fund, and other financial and investment companies.

Of those the CSRC fined, Jiuding Investment’s founder Huang Xiaojie was an assistant to the dean of the Graduate School of the People’s Bank of China, while its other founder Wu worked in the No. 1 Inspection Division and No. 1 Risk Office of the CSRC’s Department of Institution Supervision.

Editor: Ben Armour, Xiao Yi