On November 6, according to the Finance News Agency (reported by Gao Yanyun), a securities merger and acquisition case with a transaction value exceeding 10 billion yuan has led to two insider trading cases.

On November 3, the China Securities Regulatory Commission (CSRC) Shanghai office disclosed two fines. Due to insider trading during the reorganization of Guolian Securities, Mr. Gu and Mr. Li were confiscated of their illegal gains of RMB 67,800 and

In total, the two individuals have been fined 1.1217 million yuan. Gu made a profit of 67,800 yuan but was fined 500,000 yuan, which is approximately 7.4 times the amount of profit. Similarly, Li made a profit of 53,900 yuan but was also fined 500,00

The investigation of this case coincides with the release of the 'Regulations on the Reward Work of Whistleblowers for Securities and Futures Violations' (Draft for Comments) by the China Securities Regulatory Commission. On one side is a significant

The fine is 7 to 9 times the profit

Gu and Li work at two different counterparty firms related to the significant asset reorganization of Guolian Securities respectively. The former is an employee of a (Group) company while the latter is an employee of a private equity fund. Both of th

During the sensitive period of insider information, Gu controlled the securities account of Shen and bought a total of 38,200 shares of Guolian Securities from April 17th to April 23rd in 2024, with a purchase amount of 399,700 yuan. All shares were

During the sensitive period of insider information, Li controlled the securities accounts of Xu and Feng Huahua to purchase a total of 35,500 shares of Guolian Securities from April 15th to April 25th, 2024, with a purchase amount of 372,100 yuan. As

Both of them were fined 500,000 yuan, which is 7 to 10 times the amount of their profits. According to Article 191 of the Securities Law, if insiders of securities trading or those who have illegally obtained insider information engage in insider tra

Market observers pointed out that the centralized investigation of these two insider trading cases once again highlighted the regulatory authorities' 'zero tolerance' attitude towards insider trading in the capital market. Insider trading, in essence

A Securities Merger and Acquisition Case Involving Nearly Ten Billion

Looking back at history, the merger and acquisition case of International Union + People's livelihood is an important event in the securities industry with a huge overall transaction scale.

On March 15th, 2023, Guolian Securities announced that its controlling shareholder, Guolian Group, had acquired a 3.03 billion share stake in Minsheng Securities from Fanhai Holdings, accounting for 34.71 billion shares, or 30.3% of Minsheng Securiti

On May 15th, 2024, Guolian Securities announced its resumption of trading with the plan to issue A shares to purchase 100% of the shares of Minsheng Securities (later adjusted to 99.26%). It also raised up to 2 billion yuan (inclusive) in supporting

The formation and disclosure process of insider information related to this reorganization is described in detail in the penalty notice announcement.

On March 14th, 2024, Guolian Securities held the launch meeting of the project of purchasing assets through issuance of shares and arranged related work through discussions.

From March 20 to 22, 2024, Guolian Securities sent emails to the former shareholders of Minsheng Securities, informing them of its plan to conduct an asset reorganization related to Minsheng Securities. The email required strict confidentiality on th

From March 28th, 2024 to April 22nd, 2024, Guolian Securities continued to promote the transaction. The intermediary institution sent relevant transaction documents to the designated email of each transaction party.

After the market closes on April 25, 2024, Guolian Securities released an announcement on the suspension of trading to plan a significant asset reorganization, stating that it is planning to acquire the control of Minsheng Securities through the issu

The acquisition of the control of Minsheng Securities by the issuance of shares of the International Securities Exchange and the raising of supporting funds is a significant event under the Securities Law, which is considered insider information befo

CSRC Promotes the "Whistleblower" System

Regulators have maintained a strong regulatory stance against illegal activities such as insider trading.

On October 27, Wu Qing, Chairman of the China Securities Regulatory Commission, said at the 2025 Financial Street Forum Annual Meeting that we should strengthen "zero tolerance" law enforcement and deterrence, crack down on various illegal activities

On the same day, the China Securities Regulatory Commission (CSRC) announced the 'Opinions on Strengthening the Protection of Small and Medium Investors in the Capital Market', and will strictly deal with various market irregularities that are detrim

On September 30th, the China Securities Regulatory Commission (CSRC) and the Ministry of Finance jointly issued the Regulations on the Rewards for Whistleblowers in Securities and Futures Violations (Draft for Comments). The threshold for rewardable

According to market views, increasing the reward amount for reporting can effectively motivate insiders to make reports. Previously, the low reward amount resulted in insufficient enthusiasm for reporting. In some insider trading cases, there is a si