On the evening of May 26, Kingfa Technology announced that it had received a notice from the actual controller and chairman Yuan Zhimin. Due to suspected insider trading and leakage of inside information in 2016, Yuan Zhimin was investigated by the Economic Crime Investigation Bureau of Shenzhen Public Security Bureau. Shenzhen Public Security Bureau The “Decision on Release on Bail Pending Trial” was issued to him, and the time limit for releasing him on bail pending further investigation began on May 25. At present, Yuan Zhimin is performing his duties in the company normally. As of the close of May 27, Kingfa Technology has fallen by 7.15% that day, and the closing price is 8.31 yuan per share. In addition, in 2021, Kingfa’s stock price once reached a maximum of 32.2 yuan per share, and the company’s stock price fell by more than 70% in just one year. It is worth mentioning that the insider trading case of Yuan Zhimin and others was also included in the 20 typical illegal cases in the 2019 CSRC audit by the China Securities Regulatory Commission. The CSRC stated that the case shows that the major shareholders and actual controllers of listed companies should participate in corporate governance in accordance with the law, promote the company to focus on its main business, and stay away from illegal red lines such as insider trading. According to the Administrative Penalty Decision issued by the China Securities Regulatory Commission in 2019, Yuan Zhimin and Wang Zongming were closely related and had communication links during the sensitive period of insider information.
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