CSRC: Natural person Wang Zheng manipulated related stock trading prices through tactics including price pushing, false declarations, and sealing daily limits; imposed penalties and confiscations totaling 38 million yuan.

Gelonghui, March 13 — The CSRC’s Administrative Penalty Decision Letter shows that an investigation was initiated into the illegal activities of the individual Wang Zheng in manipulating the securities market. The investigation found the following violations: from August 17 to November 4, 2022, the individual controlled and used seven securities accounts to influence the trading prices of related stocks through pump-and-dump tactics, false declarations, and hitting the limit-up, resulting in illegal gains totaling 12,876,432.07 yuan. The CSRC believes that the above actions by the individual violate the provisions of Article 55, Paragraph 1, Items 1, 4, and 8 of the Securities Law, constituting market manipulation as described in Article 192 of the Securities Law.

1. The evidence in the case mutually corroborates that the accounts involved were controlled and used by the individual.
2. The individual’s actions violate the provisions of Article 55 of the Securities Law, and punishing such behavior aligns with CSRC enforcement practices. The individual created a false impression of market activity by raising stock prices to attract other investors, then engaged in reverse trading to profit, demonstrating intentional market manipulation.
3. Considering the facts, nature, circumstances, and market harm of the case, the penalty is appropriate.

In summary, the individual’s defense opinions are not accepted.

Based on the facts, nature, circumstances, and social harm of the illegal activities, and in accordance with Article 192 of the Securities Law, the CSRC has decided to confiscate Wang Zheng’s illegal gains of 12,876,432.07 yuan and impose a fine of 25,752,864.14 yuan.