Han Gang

Han Gang

Han Gang, a former Great Wall Fund Manager, was sentenced to one year's imprisonment on May 22, 2011, confiscating his illegal income and imposing a fine of 310000 yuan for illegal trading with undisclosed information during his tenure, which caused shock in the fund industry.

Profile of people

Since January 6, 2009, when Han Gang was the manager of Great Wall Jiufu securities investment fund, he used his authority to jointly operate the securities account opened by his relatives with others. He bought and sold the same stocks several times before or at the same time with Jiufu fund managed by Han Gang, making an illegal profit of more than 277000 yuan.

Related penalties

In May 2011, Shenzhen Futian District People's court made a public judgment on the case of fund manager Han Gang's suspected use of undisclosed information for trading, sentenced him to one year's imprisonment, confiscated his illegal income and fined 310000 yuan. This case has become the first one in China where fund practitioners have been investigated for criminal responsibility for illegal trading by using unpublished information. Han Gang was transferred to the public security organ for criminal responsibility, which is also the first case in China's securities market where he was transferred to the public security organ for criminal responsibility for the crime of using undisclosed information to trade in violation of the criminal law.

Industry analysis

Analysts said that the current Chinese fund managers as a whole are young and have not long working experience, so fund companies are responsible for such a thing. Fund management companies need to strengthen internal control, improve self-discipline, and prevent illegal behaviors such as "rat trading" from the source. "Han Gang applies the fourth paragraph of Article 180 of the criminal law: the crime of trading with unpublished information." Hu Ting, a lawyer from Guangdong Dena law firm, pointed out that the article stipulates that employees of financial institutions who use undisclosed information other than insider information obtained by their position to engage in trading activities related to the information in violation of the regulations, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also, or shall only, be fined not less than one time but not more than five times the illegal income If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of not less than five years but not more than 10 years and shall also be fined not less than one time but not more than five times the illegal gains. "as the first case in which a fund manager was sentenced for engaging in relevant trading activities in violation of regulations, its warning and educational significance can not be ignored." Hu Ting said. Although Han Gang is the first fund manager to be punished for using undisclosed information, he is not the first fund manager to engage in such illegal transactions.

Warning function

Zhang Yundong, director of Shenzhen Securities Regulatory Bureau, believes that it is understandable that this group brings market risks to fund holders due to lack of market experience. However, if it damages the interests of fund holders due to its own moral problems and destroys market order and market culture, it can never be forgiven. Analysts say that it is a stubborn disease for employees of asset management institutions to make profits by trading stocks with unpublished information, but to a certain extent, they can try their best to avoid their moral hazard through strict system design, continuous supervision and strict internal control system of fund companies. After years of development, overseas mature markets have gradually established a set of crackdown systems on insider trading, such as monitoring, investigation and conviction. Analysts believe that with the promulgation of the Seventh Amendment to the criminal law, the penalty for making profits by trading unpublished information has become more severe.