China's CSRC Fines Two in Insider Trading Case, Seizes 15.58 Million Yuan in Illegal Gains

China's securities regulator said on August 28 that it had opened an administrative penalty case against Wu Lingyue and Luo Zheng over insider trading, according to Jiemian News. The regulator said a related company announced a major asset restructuring on September 29, 2024, and that the deal constituted insider information under China's Securities Law. The insider information was formed on March 29, 2024 and became public on September 29, 2024. During the sensitive period, the two jointly controlled and used the securities account under Luo Zheng's name to buy shares in the related company, then sold all of them after the information was disclosed. The regulator said their trades and fund transfers closely matched contact times with a person who knew the insider information, and that the trading pattern was clearly abnormal and lacked a legitimate reason or source of information. It said the illegal gains totaled 15,577,694.08 yuan. China's CSRC ordered the confiscation of those gains and imposed a 46,733,082.24 yuan fine, bringing the total penalty to 62,310,776.32 yuan, with Wu responsible for 60,615,923.2 yuan and Luo for 1,694,853.12 yuan.