In 2020, the first case of “rat warehouse” came, the fund manager for love crazy go astray, finally “the East window”.
Wu Wenzhe, a former manager of a public fund, was pursuing a woman who was nearly 50 years old and 10 years older than himself. He even took advantage of his position to disclose undisclosed information of stock trading to the other party, and illegally traded more than 43 million yuan through the account of the other party’s mother. Under multiple operations, the account lost 1,571,900 yuan.
In the end, Wu Wenzhe and Hou Yujie were both sentenced to one year in prison and fined 50,000 yuan for trading with undisclosed information.
What kind of desperate woman makes this promising fund manager cross the legal border?
According to the judgment, the defendant Wu Wenzhe, male, born in 1979, now 41 years old, Jianhu County, Jiangsu Province, graduate culture, former department of Z company research manager.
Another defendant Hou Yujie, female, born in 1969, now 51 years old, from Yanji City, Jilin Province, college education, unemployed.
On January 9, 2019, the couple, who are 10 years apart, were detained on suspicion of trading with undisclosed information and arrested on February 3, 2019.
Yes, she was 10 years older than he was.
The Shanghai No.1 Intermediate People’s Court found that from January 9, 2015 to January 15, 2017, Wu Wenzhe served as the fund manager of “Growth Pioneer Fund” and “Excellent Manufacturing Fund” of Shanghai Investment Morgan Fund Co., LTD.
During his tenure, in order to maintain and develop the romantic relationship with Hou Yujie, Wu Wenzhe used the undisclosed information of the stocks traded by the above fund obtained from his work to help Hou Yujie use the securities account of Hou’s mother surnamed Wang to buy or sell 52 same stocks before, during or after the above fund managed by Wu Wenzhe, with the transaction amount of 43,777,300 yuan.
The total loss was 1,571,900 yuan.
On January 9, 2019, Wu Wenzhe and Hou Yujie both denied the crime after receiving a phone call from the public security authorities. They did not confess until the procuratorate issued a firm statement.
They were criminally detained on January 9, 2019 and arrested on February 3, 2019.
It is reported that Hou Yujie testified in court that Wu Wenzhe offered to help solve a lot of stock losses in October and November 2015, and Wu Wenzhe would tell him his analysis opinions on the stock.
According to Wu Wenzhe’s statement: During the period of serving as the fund of Shanghai Investment Morgan, the Growth Pioneer fund was decided by him to place orders and had the right to place orders. He could see the position of the fund in real time.
After the intention to pursue to play together Hou Yujie, in the process of communication, talked about his analysis of the stock market plate and the market.
At trial, Wu admitted to operating Hou’s stock account.
What was more embarrassing was that although Wu Wenzhe was a fund manager, the amount of insider trading was large, more than 40 million yuan, but Wu Wenzhe’s help did not help Hou Yujie, but made Hou Yujie lose 1,571,900 yuan.
A key piece of information is that Mr. Wu was a rookie fund manager just managing money when he helped his girlfriend with the insider information operation.
Although Wu Wenzhe entered the fund industry in June 2004, he has been working as a researcher for 10 years. There is a big gap between the theoretical work of a researcher and the actual work of a fund manager. From the beginning of 2015 to the beginning of 2017, the two funds under his management all suffered substantial losses, with the highest one losing more than 34%.
Under such circumstances, instructing his girlfriend to do stock manipulation, the result can be imagined.
Insider trading is not profitable, but it is not immune from punishment.
The court held that the defendant Wu Wenzhe, as an employee of the fund management company, helped the defendant Hou Yujie engage in stock trading activities related to the information by using the undisclosed trading information facilitated by his position. The circumstances were serious, and his behavior constituted the crime of trading with undisclosed information.
Insider trading has been the focus of the regulatory authorities for a long time to crack down on illegal activities, but still people continue to take risks.
However, as the A-share market has matured, the concept of value investing has begun to guide investors.
The so-called insider began to fail gradually in the A-share market, and the events of insider information trading leading to losses occurred frequently in recent years.
In 2019, the CSRC issued 70 fines related to insider trading, of which 44 were for losses.
Visible, inside information is still a lot of people.
“Insider information trading is more in the early stage of the A-share market”, A fund manager in Shenzhen once believed that the concept of the early A-share market was not mature, the concept and theme are the source of investment profits, so to inquire about the information has become A tool to make money.
The A-share market is now benefiting from regulatory policy, and if it is not related to earnings, the impact of news on prices is diminishing.
Under such background changes, even the bosses and insiders of A-share listed companies who have front-line insider information may not be able to profit from insider information.
The chairman of Chunxing Seiko is one of them.
In August 2018, A-share listed company Chunxing Seiko announced that Sun Jiexiao, the company’s actual controlling person, was suspected of insider trading of Chunxing Seiko, and was fined 250,000 RMB and banned from the securities market for 10 years by China Securities Regulatory Commission.
According to the results of the investigation disclosed by the CSRC, Sun Jiexiao bought nearly 300 million yuan worth of shares of Chunxing Seiko through personal and trust accounts before the company’s major asset restructuring.
Embarrassingly, after some operation, Sun Jiexiao controlled the above accounts a total loss of nearly 30 million yuan.
In January 2020, the Beijing Bureau of the China Securities Regulatory Commission announced a penalty decision for insider trading.
Zhang Jianrui, assistant to the general manager of strategic investment department of A-share listed Gravitation Media, told her husband Du Xingqian inside information about the company’s upcoming acquisition of Zhuhai Vision Media Co., LTD. Du Xingqian used inside information to buy Gravitation Media shares during the acquisition, and not only lost 37,400 yuan, but also the couple was fined 300,000 yuan.
Chairmen of listed companies obviously have more inside information, but there are plenty of bosses who have been reaped by the A-share market.
It also makes it easier for fund managers who don’t know much about listed companies to lose money trading on inside information.
For example, in a case exposed early last year, Shi Xiantao, the former fund manager of a fund company in Shenzhen, traded 105 stocks before or at the same time with the public fund account under his management, with a convergence transaction amount of 320 million yuan and a loss of 3.764 million yuan.
The Shenzhen Intermediate People’s Court sentenced him to three years in prison, suspended for four years, and fined him 500,000 yuan.
