Zhongchang Marine involved in insider trading, senior official fined

Shanghai: Shanghai-listed Zhongchang Marine has been found guilty of insider trading activity in a restructuring deal in 2014 and a senior official from the company’s parent group has been fined, according to an announcement made by Guangdong Securities Regulatory Commission.

Cai Xiaohua, general manager of Zhongchang Marine’s controlling shareholder Shanghai San Sheng Hong Ye Group, has been found trading stock of Zhongchang Marine illegally after learning relevant sensitiveinformation of a potential restructuring deal, which was planned by Zhongchang Marine in May 2014, and terminated in August.

Cai has been fined for RMB30,000 ($4,845) for the illegal activity.

Zhongchang Marine has estimated that it would suffer losses in two consecutive years and the stock of the company will also face a trading limit according to the local listing rules.