On July 27, 2018, the Intermediate People's Court of Xiamen City, Fujian Province held a public hearing of the first instance of the case of Chen Shulong, former member of the Standing Committee of the Anhui Provincial Committee of the Communist Party of China and former Deputy Governor of the Provincial People's Government, for accepting bribes, abusing power, insider trading, and leaking inside information.

The People's Procuratorate of Xiamen City, Fujian Province prosecuted and charged: From 1994 to 2016, the defendant Chen Shulong used his positions as the director of the Anhui Provincial National Debt Service Center, the general manager of Anhui Provincial Trust and Investment Company, the deputy mayor of Hefei, the mayor of Wuhu, the secretary of the Wuhu Municipal Party Committee,During his tenure as a member of the Standing Committee of the Anhui Provincial Committee of the Communist Party of China, Secretary-General, and Executive Vice-Governor, he took advantage of his position to help others in enterprise development, project development, financing, loans, investment, and job promotion, directly or through his wife Wang Chuanhong,The younger brother Chen Shutang and others accepted property from others, totaling more than 275.8 million yuan.

From 2009 to December 2011, when the defendant Chen Shulong served as the secretary of the Wuhu Municipal Committee of the Communist Party of China, in the process of introducing and constructing related projects, he violated the organization's discussion and decision-making procedures and decided to give relevant enterprises equipment subsidies without authorization, resulting in a total financial loss of RMB 2.124 billionYuan; violated the notice of the General Office of the State Council on regulating the management of income and expenditures for the transfer of state-owned land use rights in violation of the Land Administration Law of the People's Republic of China, and decided to return the land transfer fees to relevant enterprises without authorization, resulting in a total loss of financial funds of 792.275 million yuan.The above caused national economic losses totaling RMB 2,916,275,000.

From 2009 to 2015, the defendant Chen Shulong, as an insider of the relevant stocks, bought the above-mentioned stocks during the sensitive period of the inside information.As a result, others bought the above-mentioned stocks, and the cumulative transaction amount totaled RMB 32,058,285, and the total illegal profit was RMB 30,311,731.

During the trial, the public prosecution agency presented relevant evidence, Chen Shulong and his defenders cross-examined evidence, the prosecution and the defense fully expressed their opinions under the auspices of the court, and Chen Shulong also made a final statement, pleading guilty and repenting in court.More than 60 people from Fujian Province and Xiamen Municipal People's Congress, CPPCC members, journalists and people from all walks of life attended the trial.

After the trial, the court announced an adjournment, and sentencing at an optional date.

A number of listed companies were involved

The above-mentioned public first-instance judgment shows that the defendant Sun Ping, male, born in April 1957, Han nationality, with a bachelor's degree, was formerly the director of the Liaison Office of Wuhu Municipal Government in Beijing.He was criminally detained by the Wuhu Municipal People's Procuratorate on May 9, 2017 on suspicion of accepting bribes, and was arrested by the Wuhu Municipal Public Security Bureau on May 26 of the same year with the approval of the Anhui Provincial People's Procuratorate.

After the trial, it was found that: during his tenure as the director of the Liaison Office in Beijing, the defendant, Sun Ping, took advantage of his position to provide assistance to related companies in the process of public offering and listing of shares and non-public offering of shares, and illegally accepted Yaxia Motors 17 times.Co., Ltd. (referred to as Yaxia Automobile) General Manager Zhou Mou, Chairman of Wuhu Runrui Investment Management Co., Ltd. (referred to as Runrui Company) Hu Mou, Director of Sanan Optoelectronics Co., Ltd.Rongsanqi Interactive Entertainment Network Technology Co., Ltd. (referred to as Sanqi Interactive Entertainment) Chairman Wu 1 and other 4 people sent property worth about 5,195,688 yuan in total, of which the acceptance of Wu 1 and 5 million yuan was an attempted crime, and the restThe total value of RMB 195,688 is completed.

The Paper noted that three of the above four companies involved in the case are A-share listed companies, namely Yaxia Automobile, Sanan Optoelectronics and Sanqi Mutual Entertainment.

Public information and reports show that Zhou is Zhou Hui, general manager of Yaxia Automobile, Hu is Hu Qiang, chairman of Runrui Company, Kan is Kan Hongzhu, director of Sanan Optoelectronics, and Wu Xushun, former chairman of Sanqi Mutual Entertainment..In addition, Runrui Company was established under the leadership of Hu Qiang, and it is mainly engaged in the operation of buying and selling stocks in the secondary securities market.Runrui Company holds the stocks of many listed companies such as Fangda Carbon in the secondary market.

Sun Ping's stolen goods mainly include shopping cards, Ipad tablet computers, cash and Longines watches.

The above-mentioned public first-instance judgment also shows that Sun Ping received a shopping card worth 42,000 yuan and an Ipad tablet computer worth 3,688 yuan in total from Zhou Hui, the general manager of Yaxia Automobile.Among them, the shopping card was used by Sun Ping for personal consumption, and the Ipad was thrown away by Sun Ping after it was worn out.

Zhou Hui’s testimony stated that Sun Ping contacted the relevant leaders of the China Securities Regulatory Commission during the listing process of Yaxia Automobile and helped to carry out a lot of communication and coordination;The help provided, on the other hand, is because Sun Ping is the director of the Liaison Office in Beijing, and I hope to continue to get his help in the future.

In addition, Hu Qiang, chairman of Runrui Company, and Kan Hongzhu, director of Sanan Optoelectronics, also gave Sun Ping a 40,000 yuan shopping card and a 20,000 yuan shopping card respectively.

Wu Xushun, the richest man in Anhui and former chairman of Sanqi Mutual Entertainment, gave Sun Ping a 60,000 yuan shopping card, 20,000 yuan in cash and a Longines watch worth about 10,000 yuan.

The shadow of the fallen deputy governor

Beijing Youth Daily previously reported that Sun Ping's investigation had a lot to do with the fall of Chen Shulong, the former executive vice governor of Anhui Province. After Chen Shulong was investigated by the discipline inspection department, Sun Ping lost contact for several months.Hu Qiang, the chairman of Runrui Company, is also Chen Shulong's die-hard fan, and also lost contact for several months.

The Paper reporter noticed that Chen Shulong also appeared in many places in Sun Ping's first-instance verdict.

The above-mentioned public first-instance judgment shows that Hu Qiang, chairman of Runrui Company, stated in his testimony that in the second half of 2009, Guangdong Dehao Runda Electric Co., Ltd. (referred to as Dehao Runda Company) invested in Wuhu to establish Wuhu Dehao RundaOptoelectronics Technology Co., Ltd., project funds are raised through non-public offering of stocks.Chen Shulong believed that there were no professionals in Wuhu who understood non-public offerings, and it was also the first time for Dehao Runda to issue shares in a non-public manner. He had been engaged in this field when he was in a securities company and was relatively proficient, so Chen Shulong arranged for him to helpBDO Runda conducted a non-public offering.

Not only that, the court also produced a testimony of Chen Shulong.

According to Chen Shulong’s testimony, at the beginning of 2009, he arranged for Hu Qiang and others to attract investment from Dehao Runda Company to Wuhu and established Wuhu Dehao Runda Photoelectric Technology Company.Applying for a non-public offering of shares, he arranged for Hu Qiang to assist Dehao Runda in this non-public offering of shares.

Chen Shulong’s testimony also shows that at the beginning of 2010, he went to Beijing to attend the Two Sessions, called Hu Qiang and the chairman of Dehao Runda Company to Beijing, and took them to visit the heads of relevant departments of the China Securities Regulatory Commission. At that time, Sun Ping also received the whole process., helped to contact the China Securities Regulatory Commission, and arranged for them and relevant personnel of the China Securities Regulatory Commission to have dinner in the cafeteria of the Liaison Office in Beijing.

According to the public resume, from April 2006 to October 2011, Chen Shulong successively served as deputy secretary of Wuhu Municipal Party Committee, acting mayor, deputy secretary of Wuhu Municipal Party Committee, mayor, and secretary of Wuhu Municipal Party Committee.

In addition, the shadow of Chen Shulong also appeared during the non-public offering of shares of Sanan Optoelectronics, Yaxia Automobile and Sanqi Mutual Entertainment in 2010.

Chen Shulong testified that in 2010, Wuhu City attracted investment from Sanan Optoelectronics to Wuhu and established Anhui Sanan Optoelectronics Co., Ltd. in Wuhu. The project construction funds were raised through non-public issuance of shares..In May 2010, he took Sanan Optoelectronics Chairman Lin Moucheng and Kan Hongzhu to Beijing to report the non-public offering of shares to the relevant department heads of the China Securities Regulatory Commission.In September of that year, the China Securities Regulatory Commission approved Sanan Optoelectronics' application for a non-public offering of shares.

In another testimony, Chen Shulong confirmed that in 2009, Shun Rong Company began to operate and go public. In 2010, Yaxia Automobile also submitted a listing application to the China Securities Regulatory Commission, but the progress of the approval of the China Securities Regulatory Commission was relatively slow.

According to industrial and commercial data, the full name of Shunrong Company is Wuhu Shunrong Auto Parts Co., Ltd.In January 2015, Wuhu Shunrong Auto Parts Co., Ltd. changed its name to Wuhu Shunrong 37 Interactive Entertainment Co., Ltd., and then changed its name again to Wuhu Shunrong 37 Interactive Entertainment Network Technology Co., Ltd.

Around September and October 2010, when I went to Beijing on a business trip, I asked the Listing Office to notify the person in charge of Shun Rong Company and Yaxia Automobile to go to Beijing together. Sun Ping received the whole process.They had dinner with the CSRC staff at the Xiaonanguo Hotel in Financial Street, and then brought the heads of the two companies to the CSRC to meet with the heads of relevant departments, and communicated on related matters, hoping to speed up the approval process.Chen Shulong said in his testimony.

Chen Shulong’s testimony also stated that in 2011, the China Securities Regulatory Commission successively approved the listing applications of Shunrong Company and Yaxia Automobile.In the second half of 2013, Shunrong Company began to operate and merge Shanghai Sanqiwan Network Technology Co., Ltd. for asset restructuring, and reported the restructuring plan to the China Securities Regulatory Commission.In April 2014, the China Securities Regulatory Commission rejected the restructuring plan of Shunrong Company. For this reason, Shunrong Company invited him to communicate with relevant personnel of the China Securities Regulatory Commission. After many efforts, the China Securities Regulatory Commission approved Shunrong Company’s secondReported restructuring plan.

5 million attempted bribery

Sun Ping's biggest bribe was an attempted bribe of 5 million yuan.Sun Ping has interests in the family of Wu Xushun, the richest man in Anhui, and the listed company Shunrong Sanqi (later renamed Sanqi Mutual Entertainment) controlled by it.After the Shun Rong Panax Notoginseng meeting, Wu Xushun had promised to give Sun Ping 5 million yuan for his retirement, but due to the incident, it was not fulfilled.

The above-mentioned public first-instance judgment shows that in the second half of 2013, Shunrong Company planned to acquire the equity of Shanghai Sanqiwan Network Technology Co., Ltd. for asset restructuring, and submitted the restructuring plan to the China Securities Regulatory Commission for approval.In March 2014, the China Securities Regulatory Commission did not approve the restructuring plan.Sun Ping took Wu Xushun to the China Securities Regulatory Commission to consult and communicate with relevant personnel, and strive to submit the new restructuring plan to the meeting for approval for the second time.In May 2014, the China Securities Regulatory Commission conditionally passed the restructuring plan, but it has not issued an approval for a long time.

Because the reorganization agreement between Shunrong Company and Shanghai Sanqiwan Network Technology Co., Ltd. expires at the end of the year, if the approval from the China Securities Regulatory Commission is overdue, the reorganization will fail, and Shunrong Company will suffer heavy losses. Wu Xushun approached Sun Ping for this, please contact Sun PingSenior leaders of the Securities Regulatory Commission.Sun Ping contacted Jia Moumou, secretary of the chairman of the China Securities Regulatory Commission, and asked him to care about the progress of the approval and pass on relevant information.In November 2014, the China Securities Regulatory Commission issued an approval for the reorganization. Shunrong Company was successfully reorganized for the first time. After the successful reorganization of Shunrong Company, the company’s stock rose sharply, and the market value increased by tens of billions. Wu Xushun’s personal shareholding market value also increasedHundreds of millions of dollars.

In March 2015, in order to thank Sun Ping for his help in the listing of Shunrong Company and the process of asset reorganization, Wu Xushun and Sun Ping agreed that Wu Xushun would use the 100,000 non-public issuance of fixed increase shares held by him at a rate of 10.06 yuan per share.The issue price was transferred to Sun Ping. Sun Ping only had to pay a transfer fee of 1 million yuan. The stock was held under the name of Wu Xushun. After three years, the stock was lifted and transferred to Sun Ping. The market value of the stock at that time had reached more than 50 yuan per share.Later, because Sun Ping could not raise 1 million yuan, and thought that Wu Xushun didn't care when the transfer fee was paid, although Wu Xushun urged him to go through the transfer procedures many times, Sun Ping always delayed the payment of the transfer fee and handling the transfer procedures.

In September 2016, Sun Ping heard that Chen Shulong was being investigated, and worried that Wu Xushun would be found out about the transfer of 100,000 shares, so he asked Wu Xushun to meet at Yueyuanfang Hotel in Wuhu, and said that Wu Xushun had transferred 100,000 sharesno more.At that time, Wu Xushun replied that it would be fine not to transfer the 100,000 shares.Afterwards, Wu Xushun proposed that the stocks could be listed and traded after the ban was lifted in 2018, and Sun Ping also retired. At that time, he would send 5 million yuan in cash to Sun Ping for retirement, and Sun Ping agreed to Wu Xushun's proposal.

In October 2016, Sun Ping asked Wu Xushun to meet at Wuhu Yinhu Luzu Road. Wu Xushun once again proposed to Sun Ping to give Sun Ping 5 million yuan in cash for retirement after the stock ban was lifted. Sun Ping agreed to Wu Xushun's proposal again.

On November 8, 2016, the Supervision Department of the Central Commission for Discipline Inspection announced that Chen Shulong, vice governor of Anhui Province, was suspected of serious violations of discipline and was under investigation by the organization.

The above-mentioned public first-instance judgment also shows that at the end of 2016 and the beginning of 2017, Wu Xushun and Sun Ping were successively investigated by the Commission for Discipline Inspection, and Wu Xushun’s promise to give Sun Ping 5 million yuan after the stock ban was lifted failed to be fulfilled.

In addition, the court also found out: On January 13, 2017, the defendant Sun Ping went to the Wuhu Municipal Commission for Discipline Inspection after being notified, and truthfully confessed his crimes.After the incident, Sun Ping's relatives helped him withdraw the stolen money in cash totaling 275,000 yuan.During the investigation period, the Wuhu People's Procuratorate seized the defendant Sun Ping's Huawei EVA-AL10 mobile phone according to the law. The mobile phone stored Sun Ping's asset restructuring for Shunrong Company, and coordinated and urged the relevant staff of the China Securities Regulatory Commission to compile and issue short messages., the content has been extracted by the procuratorate as electronic data and an extraction record has been made.

The court of first instance held that the defendant Sun Ping accepted Wu Xushun’s criminal form of 5 million yuan. In the facts of the crime, the defendant Sun Ping had used his position to seek benefits for Wu Xushun, and Wu Xushun and the defendant Sun Ping made an agreement afterwards., the specific amount, method and time of the money agreed upon for the second time should be deemed to have started to commit a crime, and the failure to succeed due to reasons other than the will of the Commission for Discipline Inspection is an attempted crime, and the punishment can be lightened or mitigated in comparison with an accomplished crime.

On February 24, 2018, the People's Court of Jiujiang District, Wuhu City, Anhui Province made the first-instance judgment. The defendant, Sun Ping, was guilty of accepting bribes and was sentenced to three years and six months in prison and a fine of RMB 200,000; the stolen money was RMB 195,688.be confiscated; a Huawei brand mobile phone seized by the procuratorate according to law shall be returned.