Two Six Executives Involved In "Rat" Fund Company Were Warned By The Securities Regulatory Commission

For the two the Great Wall companies, which were trapped in the "rat farm" whirlpool, and the the Great Wall fund, the incident seemed to have settled.

The Shenzhen Securities Regulatory Commission recently issued a notice to the fund companies in the area under the supervision of the two fund managers who were suspected of violating the sale and purchase of securities, and issued a warning letter, and requested an improved supervision and management decision on the imperfect internal control mechanism found in the on-site inspection in January 2010.

First industry notified on-site inspection

In August 2009, the Shenzhen Securities Regulatory Commission conducted a surprise inspection of the practice of fund managers of 14 fund companies in the area.

Inspection found that the fund manager of the the Great Wall fund company is strong, the Great Wall fund company fund manager Han Gang and Liu Hai are suspected of using non-public information to buy and sell stocks. The amount of suspected accounts is ranging from several hundred thousand yuan to several million yuan.

The bulletin shows that there are problems in the internal control of the two companies. In addition to the illegal behaviors of fund managers in buying and selling securities, the the Great Wall fund company has been found to have failed to manage the stock out of stock in accordance with the company's regulations. The Great Wall fund company has found that the list of related parties has not been maintained promptly, resulting in illegal buying of custodian shares, and the lack of specific standards for the prior monitoring of abnormal pactions. The fair trading control and analysis do not meet the requirements of laws and regulations, and the trading volume distribution is obviously tilted to the east of the stock market.

In this regard, the SFC takes the rectification measures to the two companies.

Among them, INVESCO the Great Wall fund company chairman Xu Ying and chairman of the Great Wall fund company Yang Guangyu were taken to supervise the conversation measures. The general manager of INVESCO the Great Wall fund company Liang Huadong, deputy general manager Cai Baomei and inspector general Liu Huanxi, and general manager of the general manager of the company, Han Hao and inspector general Peng Hongbo were taken to give warning letters. At the same time, the company and the relevant responsible persons were credited to the credit file.

The result of the manager's punishment was not announced.

With the acceptance and notification of on-site inspections by two fund companies, the handling of the "rat farm" incident at the company level has come to an end, and the company has not been subject to administrative penalties.

Both companies have left their fund managers, and no results have been released for personal handling.