At present, the illegal securities investment consulting business in the securities market has not been eliminated, and the phenomenon of "black mouth" in the stock market still occurs from time to time. Such illegal acts are mainly aimed at individual investors who lack securities knowledge and risk prevention awareness and are eager to invest in stocks for wealth. Investors should take precautions and remain vigilant.
1. From Wang Jianzhong's case to see the "black mouth" behavior pattern in the stock market
Beijing Shoufang is a securities investment consulting agency. Wang Jianzhong is the controlling shareholder, executive director and manager of the company. Wang Jianzhong used his and Wang Jianxiang and other 9 securities accounts to conduct securities transactions. From January 1, 2007 to May 29, 2008, Beijing first published a consultation report on many well-known media. During this period, Wang Jianzhong used the method of “buying in large quantities first, then publicly recommending stocks, and then selling stocks” to buy and sell “business and commerce”. 28 stocks and warrants such as "Banks" have accumulated a net profit of approximately 125 million yuan.
Let's take Wang Jianzhong's transaction of "ICBC" from January 9 to 10, 2007 as an example to analyze the pattern of his transaction behavior in detail.
The first step is to buy in large quantities. On January 9, 2007, Wang Jianzhong and his actual controlled account made a total of 6 purchase orders for "ICBC" between 14:44 and 14:51, and a total of purchase contracts were made on the same day. 4.34 million shares, with an average purchase price of 5.69 yuan.
The second step is public recommendation. After buying a large number of "ICBC" stocks, Beijing Premier recommends individual stocks on many well-known online media. The report states: "Based on the prediction of the monitoring results of the Premier Information Monitoring System, the next 5 years ICBC may continue to develop at a compound annual growth rate of 30%. If calculated based on China Life’s dynamic price-earnings ratio of nearly 95 times and static price-earnings ratio of nearly 200 times, in the bull market, ICBC’s mid-line position is more than 12 yuan. Reasonable." On January 9, 2007, "ICBC" only closed at 5.78 yuan.
The third step is to sell all. Under the influence of the recommended stocks, on January 10, 2007, "ICBC" opened at 5.99 yuan, and the opening price rose 3.6% from the previous day's closing. Wang Jianzhong’s account made 8 sales declarations from 9:49 to 9:57. On that day, Wang Jianzhong sold all the approximately 4.34 million shares of "ICBC" he had bought before, at an average selling price of 5.86 yuan. Buying at 5.69 yuan and selling at 5.86 yuan, a total of about 4.34 million shares, a price difference of nearly 0.17 yuan per share, yielded a lot of money.
It can be seen that Wang Jianzhong’s “black mouth on the stock market” uses the form of “buy before recommendation and sell after recommendation” to mislead investors to achieve the purpose of manipulating the securities market, thereby obtaining illegal income. The above actions of Wang Jianzhong and Beijing Premier violated the provisions of Article 77, Paragraph 1, Item 4 of the "Securities Law" and constituted an act of "manipulating the securities market". In accordance with Article 203 of the Securities Law, the China Securities Regulatory Commission confiscated approximately 125 million yuan of illegal income from Wang Jianzhong and imposed a fine of approximately 125 million yuan. At the same time, Beijing Premier’s securities investment consulting business qualifications were revoked.
2. Three essentials to prevent and respond to the "black mouth" of the stock market
First, establish a correct investment philosophy. Before entering the market, investors should learn and master the basic knowledge of the securities market, understand the characteristics of securities products, and rationally evaluate whether their risk tolerance is compatible with the risk level of the investment product. There is no always accurate forecast in the securities market. Investors should not blindly rely on securities consulting, but should think independently, make rational investment judgments, and establish correct securities investment concepts.
Second, master the necessary knowledge of laws and regulations to enhance risk prevention awareness. According to the "Securities Law", to engage in securities investment consulting business, you should obtain the corresponding business qualifications. Before accepting relevant securities consulting services, investors should log on to the website of the China Securities Regulatory Commission to inquire about the name, address and contact number of approved legal securities investment consulting institutions across the country to verify whether the institution is a legal securities investment consulting institution and can log on to China Securities The registered securities practitioners search column on the website of the industry association shall verify the name of the practitioner, the qualification of securities investment consulting business, the certificate number and the name of the practicing institution.
In addition, you should also understand the prohibition of sex by investment consulting agencies as required by law to prevent illegal use by securities investment consulting agencies. According to the "Securities Law", in business operations, investment consulting agencies are prohibited from engaging in insider trading and manipulating the securities market, and must not provide analysis, prediction or advice to customers or investors based on false information, inside information or market rumours, and must not The agent principal is not allowed to promise income in any form when engaging in securities investment. Investors should immediately be vigilant when recommending stocks in certain radio, television or website platforms with terms such as "daily limit", "leading dark horse", "surge in bull stocks" and "short-term profit at least X%".
Third, actively safeguard their own legal rights. If an investor discovers that a securities investment consulting institution and its investment consultants have the above-mentioned illegal acts, they may lodge a complaint or report to the securities regulatory authority where the institution is located. If other illegal acts are found by consulting agencies or employees, they should promptly report to relevant departments (such as public security, industry and commerce, etc.).
For complaints involving their own rights and interests, investors should use real-name written complaints to explain the basic process of the matter, the name of the complained object, the specific party, the name of the complainant, contact information, and specific complaint requirements, and the complainant should be provided at the same time All evidence or other relevant information that the interests have been infringed. In this way, on the one hand, it can save investigation and evidence collection time, reduce the difficulty of investigation and collection of evidence, and avoid the loss of some key evidence; on the other hand, it is also convenient for relevant departments to quickly accept and investigate in a timely manner, and effectively protect the rights and interests of investors.
Source: Shanghai Securities News September 08, 2009