Tianshan Textile Insider Trading Rumors Have Been Constant?

Following the market's doubts about its restructuring party Katie investment company (hereinafter referred to as Katie investment) Deputy General Manager Cao Ge's mother, Cong Lihua and others, after being suspected of insider trading, another insider told reporters that Katie investment company deputy general manager Cao Gehe Katie investment director and general manager Yao Rongjiang also involved.

Those people are right.

Related stock movements

Changjiang Securities 11.50+0.474.26% hops 7.92+0.283.66% Hongyuan securities 15.38+0.442.95% Tianshan shares 20.35+0.391.95% Tianshan textile 12.13-0.11-0.90% reporter said that Cao Ge and Yao Rongjiang through manipulation of other accounts, before the stock suspension by borrowing from other people's accounts rushed into the Tianshan shares, the current two people have been suspended.

The reporter called Katie to invest, and the staff said, "the total sum of Yao is not in the company."

When the reporter asked Yao Zonghe whether Cao Zong was out or not, the staff were very vigilant. "I don't know, I want to find them to contact the mobile phone directly," he said.

In July 20th, the reporter once again called Katie to invest in the company. After knowing the reporter's intentions, the company staff said: "Yao Zonghe Cao is not in the company at present, and can not tell the details."

And Tianshan textile secretaries office telephone has been in the state of no answer.

As of the deadline, reporters also failed to be confirmed from the regulatory authorities.

In July 20th,

Prior to the evening of July 14th, the company issued a notice of suspension, due to the sharp rise in July 13th and July 14th, the two consecutive trading day closing price rose 20% off the value of the suspension.

After the resumption, Tianshan textile industry surged 5% straight, and fell back to 12.13 yuan after noon.

Tianshan textile announced a notice of suspension in July 22nd last year, saying that Xinjiang Katie Investment Co., Ltd., the major shareholder of the company, will restructure the company.

In June 18, 2010, Tianshan textile resumed its trading licence. The company plans to sell 120 million shares to Katie mining and Qinghai Xue Chi in accordance with the price of 5.66 yuan per share, and purchase 75% stake in Xinjiang mining industry Co., Ltd., which is invested by Limited by Share Ltd and Qinghai snow Technology Co., Ltd. in Xinjiang.

Since the suspension in July 22, 2009, Tianshan textile has risen by 103.18% in less than a year.

In this short period of time, Tianshan textile actually has only 14 trading days.

Insider trading suspicions

In June 21st, a detailed report on interest changes published by Tianshan textile revealed that in the 6 months before the suspension of reorganization last July 23rd, a total of 9 directors, supervisors, senior executives and immediate family members bought and sold shares of the company.

Including Cao Ge, Katie, deputy general manager of investment, Cong Lihua and others.

Cong Lihua bought 5000 shares in June 1, 2009, sold 5000 shares in July 13, 2009, bought 15000 shares in July 21, 2009, now holds 15000 shares of Tianshan textile shares, Zhang Fapeng bought 800 shares in June 11, 2009, sold all in June 12, 2009, and Li Rong bought 5000 shares in June 1, 2009 and sold them all in June 12, 2009.

{page_break}

Cong Lihua is Katie, the deputy general manager of Cao Ge investment company, Zhang Fapeng's wife of Chen Yu, the supervisor of Katie investment company, and Li Rong's wife, deputy general manager of the investment company.

But those people familiar with the matter told reporters that these accounts are all blind.

It is not these people who are actually suspected of insider trading.

The person told reporters that the account Cao Ge used to trade was not the Cong Hua and Li Rong mentioned in the notice, but two other personal accounts: Chen Xuesong and Zhang Rong.

Cao Ge is Katie general manager of investment asset management department and deputy general manager of the company.

And Katie investment is the Tianshan textile reorganization party.

Today, Katie investment is a powerful capital predator in the West. It is a wholly owned subsidiary of Xinjiang Financial Investment Co., Ltd. under the state owned assets supervision and Administration Commission of Xinjiang. At present, Katie investment has not only owned subsidiary companies such as Katie mining and Katie real estate, but also has penetrated into many listed companies and listed companies in Xinjiang.

"Cao Ge bought 105 thousand shares of Tianshan textiles in Urumqi and Renmin Road, Sales Department of Hongyuan securities on July 21, 2009 and 22, using Chen Xuesong's account."

People familiar with the matter said.

What is the relationship between Cao Ge and Chen Xuesong? Why do they use their accounts to buy and sell?

According to the reporter's investigation, Cao Ge and Chen Xuesong worked in hops Limited by Share Ltd (HOPS) in Xinjiang, while Cao Ge served as director and manager of Limited by Share Ltd's Securities Department of Xinjiang hops, while Chen Xuesong also had some trading activities with hops.

The reporter looked at the mid term report of hops in 2006, when hops pferred all the shares of the property company owned by them (51%) to Chen Xuesong, a natural person, at a price of 10200 yuan.

Cao Ge later left hops and served as the director, business director and deputy general manager of the investment banking department of China investment bank, Shanghai, and general manager of Shanghai Sino faith Financial Communication Co., Ltd.; later, he became the general manager of Shanghai Hengyuan Investment Company Limited; now he is the general manager and Deputy general manager of the asset management department of Xinjiang Katie investment limited liability company in Shanghai.

"Although Cao Ge left hops, he was actually friends with Chen Xuesong.

After that, Cao bought 87 thousand shares in Zhang Rong's account, amounting to 550 thousand yuan.

Zhang Rong is Cao Ge's sister-in-law.

The insider said.

As the above pactions did not meet the disclosure standards, our reporter failed to confirm the public information.

Yao Rongjiang bought and sold by hand.

"In addition to Cao Ge, Yao Rongjiang, the general manager of Katie investment, also bought and sold Tianshan textile stock through other people's accounts."

People close to the exchange said.

Yao Rongjiang, from 1997 to 2005, served as director, vice president and general manager of hops. In July 2004, Aikelamu Aishayoufu, chairman of hops, was mysteriously missing. Due to the lack of timely disclosure of information, Yao Rongjiang, vice chairman of the board, was warned and fined by the SFC.

In August 2005, Yao left hops.

In May of next year, Yao joined Katie as director and general manager, and became director of Hongyuan securities in September 2006.

"Yao Rongjiang is an able man. He bought the purchase plan, but he is said to have been suspended."

The person familiar with the matter said.

The reporter called Katie to invest in his subsidiary, and the staff member said, "Yao has left the company."

But the specific reason is not.

Yao Rongjiang, who participated in the drafting program, revealed the news to Wang Qing, a university student.

Yao Rongjiang and Wang Qing are 84 students in the school of chemical and environmental engineering, Beijing Technology and Business University.

Wang Qing is currently the legal representative of Xinjiang Hanyang Investment Company Limited (Hanyang investment).

The registered location of Hanyang investment office is 1008 room of hops Building No. 339 Jiefang North Road, Urumqi, with a registered capital of 10 million yuan.

Han Yang investment was originally held by Yao Rongjiang, and later pferred 90% to Wang Qing, but this is only a proxy.

When Wang Qing had so much money to take over, Yao Rongjiang was the real controller of Han Yang.

People familiar with the matter told reporters.

Yao Rongjiang bought the Tianshan textile stock by Wang Qing's hand. People familiar with the matter said that Wang Qing bought four yuan in Tianshan textiles, about 8000000 yuan in Guangming Road, Urumqi, and about 1 million 285 thousand shares.