Linqiong fined 500,000 yuan for insider trading of Aotek stock.

The recent administrative regulatory decision issued by the Sichuan Securities Regulatory Bureau targets He Linqiong for engaging in violations of the law. The decision document outlines two main violations committed by He Linqiong, focusing on the formation and disclosure process of insider information and He Linqiong’s trading of “Aotefeng” stock during the insider information sensitive period.

In the first violation, it is noted that the controlling shareholder and actual controller of Aotefeng were planning to transfer shares to Changjiang No. 1 Industrial Investment, resulting in the company’s actual controller changing to the Hubei Provincial State-owned Assets Supervision and Administration Commission. This constituted a material event under the Securities Law and qualified as insider information before public disclosure. The sensitive period for this insider information was identified as March 7, 2024, to March 31, 2024. Zhou Guo, who served as a director and executive vice general manager of Aotefeng, had access to this confidential information no later than March 17, 2024.

The second violation involved He Linqiong’s trading of “Aotefeng” stock during the insider information sensitive period. He Linqiong and Zhou Guo are spouses, and He Linqiong and He Wei are aunt-nephew relations. It is highlighted that the securities account of “He Wei” was opened on June 21, 2017, at the East Street Securities Branch of Huaxi Securities Co., Ltd. in Pidu District, Chengdu. During the insider information sensitive period, He Linqiong utilized the “He Wei” securities account to purchase 153,000 shares of “Aotefeng,” resulting in a total transaction amount of 458,465 yuan. Subsequently, all shares were sold after the insider information was disclosed, generating profits of 124,529.75 yuan. These actions by He Linqiong were deemed as insider trading, leading to the confiscation of illegal gains amounting to 124,529.75 yuan and imposition of a fine of 500,000 yuan by the Sichuan Securities Regulatory Bureau.

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