Caixin
Jan 07, 2021 08:09 PM
FINANCE

Real Estate Boss Fined $6.5 Million for Insider Trading Linked to Ant Group

What’s new: A real estate boss has had his illegal gains confiscated and an additional fine of 42.3 million yuan ($6.5 million) imposed for insider trading related to fintech giant Ant Group Co. Ltd., according to an announcement (link in Chinese) by China’s securities regulator.

In 2018, Ma Minghai, a major shareholder of a real estate developer based in the eastern province of Shandong, learned of Ant Group’s planned investment in Shenzhen-listed IT system provider Newcapec Electronics Co. Ltd. from Newcapec Chairman Yang Weiguo, and purchased shares of the company before the information was made public. Illegal gains from the deal amounted to 21.6 million yuan, the announcement said.

Ma and Yang were classmates at an executive master of business administration program, better known as EMBA, at China’s prestigious Tsinghua University.

What’s the background: China’s financial regulators have pledged to crack down on market irregularities such as insider trading and market manipulation for years.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

Related: Top Financial Committee Locks In on Trading Risks, Financial Fraud

Contact reporter Luo Meihan (meihanluo@caixin.com) and editor Heather Mowbray (heathermowbray@caixin.com)

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