November 24, 2008
Wang Jianzhong, a stock broker and market commentator, is facing an enormous fine for manipulating share prices.
The China Securities Regulatory Commission decided on Saturday to fine Wang 125 million yuan, and ordered him to forfeit the 125 million he made illegally. He’s also been barred for life from the securities market.
The forty year old started his career as a stock broker in 2001 when he founded Beijing Shoufang Investment Consulting Company. By 2003, Wang was regularly pontificating on stocks on the media. Wang gradually built his reputation through forecasts that were frequently vindicated by the market, despite the overall bearish climate at that time.
According to an article in the Yangtse Evening Post, Wang would buy a stock on Tuesday or Wednesday using his own capital, and then issue recommendations to client investors who paid him a commission. On the weekend, Wang would publish articles giving the same recommendations in newspapers. Using this method, Wang’s picks usually went up the next Monday.
The CSRC determined that Wang made 125 million yuan in profit through this method. The case has also been transferred to a prosecutor, and it’s likely that Wang will face criminal charges.
Also:
● Huang Guangyu, the second richest man in mainland China (according to Forbes) and founder of electrical appliance retailer GOME, was reportedly take away by the police. Rumors say he’s suspected of market manipulation in a case involving his brother’s company.
● The photo shows a landslide in Hechifeng County, Guangxi Autonomous Region, that toppled buildings and buried at least six people. The paper reports one confirmed death.
- Yangtse Evening Post (Chinese): Market commentator will be fined for market manipulation