China Securities Regulatory Commission (CSRC) has announced sanctions on six individuals for insider trading of Ningbo Marine shares prior to a major restructuring of the company.
According to the announcement, three senior officials from Ningbo Marine’s parent Zhejiang Energy Group and affiliate Ningbo Beilun Shipping, colluded with their relatives to buy in large amount of Ningbo Marine shares after getting insider information of the restructuring deal in 2017 in an attempt to gain profit, however, all of them suffered losses from the illegal investment due to the bad performance of Ningbo Marine shares.
CSRC has fined the six people for RMB410k ($58,000) in total.
Ningbo Marine initiated a major restructuring to acquire all the shipping assets of its parent Zhejiang Energy Group in early 2018 and completed the lengthy restructuring in January this year.
The company currently owns a fleet of 36 vessels comprising 26 bulkers and 10 feeder boxships.