Tianshan Textile Insider Trading Scandal Now &Nbsp; Hongyuan Securities Is Suspected Of Internal Cover.

　　 Katie investment executives involved in insider trading Tianshan textile In the process of restructuring, we have created one miracle after another. However, a notice issued by the SFC opened the iceberg corner of insider trading. The final conclusion of insider trading has not yet been reached, but Hongyuan securities, an independent financial adviser, has played an awkward role in the stock price rise. since Recombination The third party, however, has a difficult relationship with the reorganizing party. The final result of Tianshan textile restructuring is still unknown, but doubts need to be answered by all parties.

Once regarded as " Monster stock "Tianshan textile (000813.SZ) has been overshadowed by its reorganization or exposure due to insider trading cases.

"Tianshan textile restructuring party Katie investment is indeed our shareholders, but it is not the two shareholder." In October 22nd, Hongyuan securities (000562.SZ) deputy director of the office told reporters. But the reason for issuing a questionable financial report of Tianshan textile has not been answered to reporters.

Prior to September 17th, a China Securities Regulatory Commission reported that during the major asset restructuring of Tianshan textile in 2009, Yao Rongjiang and Cao Ge, the reorganizing party executives, were suspected of insider trading and disclosure of insider information. At present, the SFC has transferred the case to the public security organ for criminal responsibility.

It is not known whether the reorganization will be affected by insider trading. But if Tianshan textile is identified as insider trading, then the independent financial adviser, Hongyuan securities, in its restructuring process, will probably not be able to stand alone.

"Inappropriate financial reporting"

A notice issued by the SFC has made the "monster stock" Tianshan textile show its true shape. As a restructured independent financial adviser, Hongyuan securities seems to be unable to escape responsibility.

In June 18th, the independent financial advisor released by Hongyuan Securities said: "in the six months before the Tianshan textile suspension, that is, between January 22, 2009 and July 23rd, Tianshan textile and its shareholders unit, Katie investment and its affiliates and intermediary agencies have no trading in Tianshan textile stock."

However, there is a situation in which the directors, supervisors, senior managers or their immediate family members of the affiliated transactions have traded Tianshan textile stocks during the verification period.

Among them, Katie, deputy general manager and asset management manager of the investment, Cao Ge, whose two spouses and mothers bought 5000 shares in June 1, 2009, sold 5000 shares in July 13th of that year.

In July 21, 2009, Cao Ge's mother bought 15000 shares again. When Hongyuan securities released the report, the 15000 shares still held.

The financial report said that according to the relevant instructions issued by Katie investment, including Cao Ge and others, when buying and selling behavior occurred, I did not know any information about the purchase.

But the SFC said in an announcement that the administrative investigation found that in July 2009, Tianshan textile planning assets reorganization, Yao Rongjiang and Cao Gejun were insider information insiders.

"Generally speaking, there may be a one or two week discussion period before the suspension is restructured. But in July 21st, the immediate family members of the restructuring side were still buying shares, which was too close to the suspension. A senior industry sponsor who declined to be named commented, "therefore, it is not appropriate for Hongyuan securities to issue financial advisory reports at this time."

The person said that as a general financial adviser in the reorganization, the company will put forward various precautions in advance to avoid insider trading problems.

"Issuing such a report does not exclude Hongyuan securities from rushing to the top, because if they do not themselves, they may give others opportunities." The source said.

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In this regard, our reporter sent an outline to Hongyuan securities. But to the deadline, Hongyuan securities sources said that the matter is still in the process of leadership approval.

"Clues" in annual reports

For the reason why Hongyuan securities issued this report, we can get a glimpse of one or two from its relationship with Katie, the reorganizing Party of Tianshan textile.

Public information shows that in 2006, Katie investment once joined Hongyuan securities, a major shareholder of China construction investment, to invest 2 billion 600 million yuan in Hongyuan securities. Among them, Katie investment injection 200 million, injection price of 3.05 yuan per share. As a result, Hongyuan securities acquired 65 million 570 thousand shares of restricted stock and became the second largest shareholder.

According to the 2009 annual report of Hongyuan securities, until June 9, 2009, Katie's investment in Hongyuan securities was completely lifted. But at that time, Katie investment was no longer among the top ten shareholders of Hongyuan securities.

But in October 20th, Hongyuan securities Deputy Director of the office of an anonymous woman said Katie investment remains Hongyuan securities shareholders.

According to the report of Hongyuan securities in the half year of 2010, the company received a letter from shareholders Katie. In March 9, 2010, the SFC sent inspection teams to Katie to invest in the investigation of the insider trading of Yao Rongjiang, a former director of Hongyuan securities.

Yao Rongjiang, as general manager of Katie, general manager of Hongyuan securities company, also resigned as director of Hongyuan securities in April 1st of this year.

That is to say, Hongyuan securities, an independent financial advisor of Tianshan textile, is not the same as Katie, who is the reorganizing Party of Tianshan textile. Katie is a shareholder of Hongyuan securities, and Yao Rongjiang is also a director of Hongyuan securities.

"Although the interests of independent financial advisers and reorganizations have not been clearly stipulated in the industry regulations, the SFC will certainly be concerned about this. In addition, the reorganizing party executives as directors of independent financial advisers do indeed doubt their independence. The sponsors said.

Yao Rongjiang, who was suspected of insider trading, was investigated by the securities and Futures Commission. "Before the suspension of Tianshan textile shares in July 23rd, Yao Rong River leaked the restructuring information to Wang. The latter concentrated on buying more than 100 shares of Tianshan textile stock through its multiple securities accounts."

At the same time, "Cao Ge leaked the restructuring information to Chen, who used his and his relatives' accounts to buy Tianshan textile stocks in large quantities."

Public information shows that Yao Rongjiang had previously served as deputy general manager, general manager, director and acting chairman of [9.24 -0.65%] in hops. Another news revealed that in July 2004, Aikelamu Aishayoufu, chairman of hops, was mysteriously missing. Yao Rongjiang, vice chairman of the board, was warned and fined by the CSRC because the information disclosure was not timely.

The future of restructuring is uncertain.

With the exposure of insider trading case, the trend of Tianshan textile share price seems to have been followed. In fact, until June 30, 2009, the opening price of Tianshan textile was still around 4 yuan per share. After opening in July 2nd this year, the price of Tianshan textile rose to a frenzied level. Among them, in September 1st this year reached the highest price of 17.68 yuan per share. In October 22nd, Tianshan Textile News closed at 14.60 yuan.

The securities and Futures Commission announced that the public security organs had filed a case investigation, and the people's Procuratorate has authorized the arrest of suspects such as Yao Rongjiang, Cao Ge and Wang, who are suspected of insider trading and disclosing insider information.

"Tianshan textile restructuring is affected by the certainty, but suspected insider trading may be just an individual act, and will not affect the restructuring." The sponsor, who does not want to be named, told this reporter.

The sponsor said, in addition, the nature of the reorganization of the two enterprises may decide the next step of the reorganization.

"If Katie's investment in the assets of listed companies is not high enough, the future of Tianshan textile restructuring is hard to say." The source said.

According to our reporter, Tianshan textile's largest shareholder is the Xinjiang Uygur Autonomous Region state owned assets investment and Management Co., Ltd. The reorganization is planned by itself.

Katie invested in the western region as a "capital Predator". It was established in May 2006, which is mainly engaged in asset management, securities investment, project investment and consulting. Its sole shareholder is Xinjiang Rural Credit Union.

　　 Zhang Yuanzhong told our reporter: "during the investigation, we should not promote restructuring. Tianshan textile should issue a notice. In addition, if insider trading involves only individuals, it may only punish relevant persons involved. Restructuring has normal procedures and should not be affected. "