The "post-90s" market makers manipulate the stock price to earn 20 million a month, and half of the team is fund practitioners

Bronco Finance

2024-07-09 20:07Posted on the official account of Shanxi Mustang Finance

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01 The investigation by the China Securities Regulatory Commission found that 8 people including Zheng Yongtian of Yiming Fund used 45 securities accounts from April to May 2022 to manipulate two stocks, Aishida and Dongyi Risheng, with a cumulative profit of 19.4571 million yuan.

02 The 8 members of the team are all "post-85s", 4 of which are "post-90s", and Zheng Yongtian is the team leader.

03 Due to this manipulation, Zheng Yongtian's team was confiscated of illegal gains and fined 19.4571 million yuan, with a cumulative fine of nearly 40 million yuan.

04 The China Securities Regulatory Commission said that it will maintain a high-pressure posture against stock price manipulation, maintain market order and protect the legitimate rights and interests of investors.

05 In addition, in the recent fines punished by the China Securities Regulatory Commission, there are many "young people", such as "post-90s" Wang Bin and "post-85s" Zhang Zhi.

The above content is generated by Tencent's hybrid model and is for reference only

It is urgent to clean up the securities market

Author | Zhang Kaijing

Editor丨Wu Lijuan

Source | Bronco Finance

A-share participants are tending to be younger, and the "post-00s" have quietly entered the market, while the "post-90s" have already been fined for "sitting in the bank".

Recently, the China Securities Regulatory Commission (CSRC) investigated and found that 8 people including Zheng Yongtian of Yiming Fund used 45 securities accounts from April to May 2022 to jointly or continuously trade Aishida (002403. SZ), Dongyi Risheng (002713. SZ) 2 stocks, with a cumulative profit of 19.4571 million yuan. This constitutes manipulation of the securities market.

All 8 people are "post-85s", and there are 4 "post-90s". In the end, all the illegal gains of the team were confiscated, and an additional penalty of 19.4571 million yuan was imposed, and a total of nearly 40 million yuan was confiscated.

At a young age, he has enough money to sit in the bank, and he has made a lot of profits by entering the market accurately, what is the origin of Zheng Yongtian's team?

In the evening, the review meeting conspired,

Nearly 20 million profit in 23 days

In September 2021, Zheng Yongtian, Zhu Yang, and Lin Jindie established Yiming Private Equity Fund as shareholders with a registered capital of 10 million yuan.

Backed by the main business of private equity investment, Yiming Fund has a close connection with the capital market, which also led Zheng Yongtian to have other ideas. Since 2021, Zheng Yongtian, Zhu Yang, and Lin Jindian have pulled together Pu Xiupeng, an employee of Yiming Fund, and Lin Zhengqing, Chen Zexin, Luo Jiancan, and Hang Qifei, who are not working in Yiming Fund, and 8 people have formed a "stock speculation team", using 45 securities accounts to trade stocks at the office location of Yiming Fund.

The team members have a clear division of labor, each of them is responsible for different directions, and Zheng Yongtian, Zhu Yang, and Lin Jindie make overall planning and decision-making.

Source: CSRC official website

Every night, the team will hold a review meeting, and after the members exchange opinions, Zheng Yongtian, Zhu Yang, and Lin Jindie will determine the trading range, take-profit level, and stop-loss level of the next day's individual stocks. The next day, the members followed the plan and exchanged updates in real time.

Perhaps it was the cooperation and smooth operation in the early stage that gave the team confidence. In April 2022, Zheng Yongtian's team began to invest heavily to concentrate capital advantages to manipulate the market. And the first target they chose was Aishida, a home appliance faucet.

During the period from April 26th to May 6th, the team first used 4 days to raise the stock price, spending a total of 81.9657 million yuan to buy stocks and sell 14.9175 million yuan, and frequently applied for buying at a price not lower than the selling price or the market price or the limit price, resulting in the price limit of Aishida's stock price for 4 consecutive days, and the stock price increase deviated from the corresponding sector composite index by 34.86%. After 2 days of "shipment", 3.8789 million yuan was bought and 77.681 million yuan was sold, and Aishida immediately fell for 2 consecutive days.

In the end, Zheng Yongtian's team bought 85.8446 million yuan and sold 92.5985 million yuan in 6 trading days without holding Aishida shares at the beginning, making a total profit of 6.6358 million yuan.

Immediately afterwards, the team set its sights on Dongyi Risheng, the "first share of home improvement". When Aishida had not yet been completely withdrawn, Zheng Yongtian and others started the "two-line operation" and repeated similar techniques in Dongyi Risheng.

The five trading days after May 5 were the period of opening positions, and the team bought a total of 87.8437 million yuan and sold 3.3237 million yuan. Dongyi Risheng has a daily limit for 4 consecutive days; On May 12th, the team continued to declare and buy in a big way, Dongyi Risheng opened the daily limit again, and the team made the first bid and transaction 6 minutes after the opening, selling 93.3679 million yuan in one fell swoop;From May 13th to May 18th, the team bought a total of 1.2844 million yuan and sold 20.351 million yuan, and Dongyi Risheng once fell for 3 consecutive days.

Source: Wind data

In the end, Zheng Yongtian's team bought 104 million yuan and sold 117 million yuan in 10 trading days, making a profit of 12.8213 million yuan.

Between the two in and two out, Zheng Yongtian's team only took 14 trading days to make a cumulative profit of 19.4571 million yuan.

The punishment of the China Securities Regulatory Commission is also mainly focused on Zheng Yongtian, who alone bears 18.2777 million yuan, Lin Jindie, Lin Zhengqing, Zhu Yang and others.

The team includes fund practitioners and free investors

The background of Zheng Yongtian's "post-90s" team is mysterious, and the CSRC has not elaborated on it, while the shareholding structure of Yiming Fund is also very simple and has not involved judicial disputes.

However, from the filing of the Asset Management Association of China, some clues can still be found.

Judging from the filing information, the management scale of Yiming Fund is 0-500 million yuan, which belongs to the smallest category of registered private placements.

Zhu Yang, one of the founding shareholders, worked as a counselor in the Department of International Economics and Trade of China Soft Software School of Guangzhou University for 4 years. Interestingly, after leaving Guangzhou University, Zhu Yang immediately became a risk control supervisor in the compliance and risk control department of Guangdong Chenxing Investment Management Co., Ltd., and since then he has formed an indissoluble bond with the capital market.

Only six months later, Zhu Yang became the head of the trading room of the investment management department of Guangdong Main Road Investment Private Equity Company. According to industrial and commercial data, the actual controller of Chenxing Investment and Trunk Road Investment is Fan Qingsong.

It may be that he shuttles between K-lines with huge sums of money every day, which stimulates Zhu Yang's interest in securities trading. In June 2018, Zhu Yang resigned again and began a three-year career as a freelance investor. In the AMAC filing, this experience is marked as "using its own funds to engage in securities investment". After that, Zhu Yang established Yiming Fund.

Source: Asset Management Association of China official website

Guo Hailong, the head of compliance and risk control of Yiming Fund, is not on the list of 8 people punished by the CSRC, but he has a lot of experience before joining Yiming Fund.

In 1990, Guo Hailong also worked in Guangzhou MSG Food Factory, and soon became the head of the sales department, and then worked as a sales engineer in Jibao Company for 12 years, and worked as a freelancer for another 3 years; In 2011, he intersected with the securities industry and became the marketing manager of the market department of Pacific Securities, and five years later became the risk control director of Shenzhen Qianhai Jingzhi Asset Management Company, and joined Yiming Fund in 2021.

On the whole, a total of 8 people in Yiming Fund Company have obtained fund qualifications, including Zhu Yang, Lin Jindie, Pu Xiupeng and Lin Zhengqing, who were named and punished by the Securities Regulatory Commission.

At present, Yiming Fund is still operating normally, but Zheng Yongtian has withdrawn from the shareholders. It has established a total of 20 private securities investment funds, of which 4 have been liquidated. In 2023, Yiming Fund will also appear as one of the top ten shareholders of Deen Seiko (300780.HK). SZ).

Not only that, Yiming Fund is also quite active in the circle. In November 2023, he just accepted the investigation of three teachers from the Investment Teaching and Research Department of Guangzhou University of Technology and Business; In March this year, Lin Jindie, as a representative of Yiming Fund, participated in the review of the "Looking for Future Fund Managers" University Simulated Investment League hosted by Guangzhou Institute of Technology and Business. The background of the jury includes many well-known securities institutions such as Dongguan Securities (A15130.SZ) and E Fund.

Thanks to the investment experience of the internal members of the team, Zheng Yongtian's team can see that they have done a lot of homework in terms of stock selection.

Both Aishida and Dongyi Risheng are small-cap stocks with a market value of less than 5 billion yuan, and the equity is highly controlled by the actual controller.

Source: Canned Gallery

Taking Aishida as an example, as of the first half of 2022, the founder Chen Helin and his wife, son, and daughter hold a total of 55.6% of Aishida's equity, the number of shareholders of the company is less than 20,000, and the daily daily turnover is around 10 million yuan to 20 million yuan, and the transaction is relatively deserted.

In addition, April-May 2022 also coincided with the low point of the stock prices of Aishida and Dongyi Risheng, with the former's stock price falling by more than 60% from the historical peak in 2015 (before the resumption); The latter's share price has fallen by nearly 80% from its historical peak in 2015 (before the weighting). Both companies traded sideways at the bottom for more than 1 year before trading.

Selecting key points and choosing opportunities to make a move allowed Zheng Yongtian's team to use a small amount of funds in a short period of time to obtain considerable benefits. However, every move in the capital market must be established within the framework of rules.

When will the regulator stop manipulating stock prices?

Bai Wenxi, vice chairman of the China Enterprise Capital Alliance, believes that Zheng Yongtian's team may have manipulated stock prices due to misunderstanding of market rules, underestimation of regulatory strength, or overconfidence in personal ability, believing that huge profits can be obtained by manipulating the market.

But this just steps on the high-voltage line of regulation. Bai Wenxi said that judging from the case information disclosed this year and the frequency of case filing, the CSRC's punishment for stock price manipulation shows a trend of strengthening supervision and cracking down.

On June 7, the China Securities Regulatory Commission (CSRC) issued the Basic Rules for the Discretion of Administrative Penalties (Draft for Comments), which is the first systematic administrative penalty standard in the capital market, and makes a detailed distinction between multiple sentencing gradients.

In 2023, the China Securities Regulatory Commission will make a total of 539 administrative penalty decisions, a year-on-year increase of 40%; In terms of market manipulation, the number of cases reached 25, of which 20 were handled by the China Securities Regulatory Commission; In terms of punishment, the amount of illegal gains confiscated is about 1.2 billion yuan, the amount of fines is about 2.1 billion yuan, and the total amount of fines and confiscations exceeds 3 billion yuan.

In addition, the China Securities Regulatory Commission has also built a "penetrating" clue screening system through all-round monitoring, big data collision and other technical means to improve the efficiency and accuracy of investigation and punishment. In Bai Wenxi's view, this shows that the CSRC is taking more effective measures to deal with market manipulation, aiming to maintain market order and protect the legitimate rights and interests of investors.

Source: Canned Gallery

It is worth noting that in a series of fines issued by the China Securities Regulatory Commission recently, there are many "young people".

In addition to Zheng Yongtian's team, the "post-90s" Wang Bin controlled the use of 87 securities accounts to trade Dianguang Technology (002730. SZ) stocks, made a profit of 90.275 million yuan, and was fined 270 million yuan;Zhang Zhi, a "post-85" generation, controlled 109 securities accounts and manipulated Huaying Agriculture (002321. SZ) stocks, with a profit of 133 million yuan, was fined 266 million yuan.

On the one hand, this reflects the dynamism of A-shares. According to a survey launched by Tencent Finance in 2022, investors aged 40-59 accounted for 46.33%, the most among all age groups. followed by investors aged 30-39, accounting for 43.27%; The proportion of investors aged 18-29 is also 7.75%, and the "post-00s" have entered the market. On the other hand, Shen Meng, director of Chanson Capital, believes that young people will be more radical in personality and more complex in terms of means because they have mastered more technology. This creates even greater challenges for regulatory investigations.

In addition, despite the increased punishment, there are still controversial voices in the outside world. Shen Meng said that although it seems that the penalty amount is about twice the profit, this penalty is still low compared to the losses caused by the relevant investors.

From these perspectives, market cleanup is still a long and arduous task.

What do you think of the phenomenon of "post-90s" market makers manipulating stock prices? Let's talk in the comment section!

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