*ST Velvet ((000982): Insider Trading Penalty

In July 11th, the Shanghai Securities Regulatory Commission disclosed the administrative penalty decision of Ma Guobin and Ma Qianchao in the case of silver cashmere shares in insider trading.

It was found that Ma Guobin and Ma Qianchao had the following illegal facts:

I. the formation and disclosure process of insider information.

Because of the poor operation of the silver cashmere industry in 2015 and 2016, the Heng Tian Jinshi Cci Capital Ltd (hereinafter referred to as "Heng Tian Jin Shi") is the second largest shareholder of the cashmere industry, the private equity fund manager of the Heng Tian poly (Shenzhen) Investment Center (limited partnership), and the Bank of China, which is actually controlled by a certain country.

In the first half of 2016, Shanghai FXX Data Communication Technology Co., Ltd. (hereinafter referred to as Shanghai Fei Xun) operating cash flow problems, endangering the normal operation of enterprises. At the meeting of the core shareholders and creditors of Shanghai in May 2016, the participants at the meeting agreed to push forward the listing process of Shanghai's Fiji through asset restructuring, and entrust Shanghai and Hei Cci Capital Ltd (hereinafter referred to as Hexi investment, the largest shareholder and actual controller of Shanghai's Fxxx) to dock with the capital market.

In June 2016, Yang Mouzhu, general manager of Heng Tian Jinshi, contacted the chairman of Hexi investment company Kang, and met in Fei Xun, Shanghai in June 24th. The two sides agreed that the agency would arrange an intermediary investigation to Shanghai, according to the due diligence.

In October 17, 2016, Yang Mouzhu went to Yinchuan to meet with Ma state, telling Ma country to plan the reorganization of the silver cashmere industry and Shanghai Fei Xun, and Ma Mou country arranged for Yang Mouzhu to further discuss with Fei Xun of Shanghai.

Around October 21, 2016, according to the agreement between Heng Tian Jinshi and Hexi investment, the intermediary agencies hired by Heng Tian Jin Shi went to Shanghai to perform due diligence.

In early November 2016, Yang Mouzhu visited the Qin District of Songjiang District District of Shanghai. The government of Songjiang District basically agreed to the reorganization plan of the silver cashmere industry and Shanghai Fei Xun. In November 4th, Yang Mouzhu reported to the vice mayor of Yinchuan Guo Mouchun and got the approval. In November 5th, Yang Mouzhu informed that the restructuring of the Bank of China and Shanghai's Fei Xun was approved and supported by the governments of Songjiang District and Yinchuan of Shanghai, and was recognized by Ma state.

Under the coordination of Yang Mouzhu, in from November 14 to 15, 2016, Qin took a tour of the cashmere industry to investigate, and exchanged talks with Guo Mouchun and Ma Mouzhong, respectively. The two sides clearly expressed their support for the restructuring of Shanghai's Fei Xun and the Bank of China's cashmere industry.

In November 22, 2016, the Bank of China issued a notice on the suspension of stock trading fluctuations, and the company's stock began trading in November 22nd.

In February 6, 2017, the Bank of China released the notice on holding shareholders' meeting to consider continuing the suspension of major asset restructuring matters, disclosing that the cashmere industry intends to purchase more than 51% of Shanghai's FX news by paying cash in installments.

The Bank of China industry intends to acquire shares in Shanghai's Phil Xun stock. The insider information was not later than November 5, 2016. It was published in February 6, 2017. As the actual controller of the cashmere industry, Ma Mou state participated in the decision-making process of restructuring matters. It was not later than November 5, 2016 when the insider information insider of the seventy-fourth articles and second provisions of the securities law was informed.

Two, the fact that Ma Guobin and Ma Qianchao shared the insider trading "cashmere industry".

(1) the contact and contact between Ma Guobin and Ma state before the formation of insider information to public.

Ma Guobin, a cashmere supplier of the silver cashmere industry, has been a business partner for many years. The communication records between Ma Guobin and Ma Mou state show that two people have made 38 calls from November 5, 2016 to February 6, 2017. In addition, Ma Guobin and Ma Guo met in Beijing before November 8, 2016, and the two stayed in Beijing China Hotel, and returned to Yinchuan from Beijing on the same plane in November 10th.

(two) Ma Guobin and Ma Qianchao jointly took advantage of the "Ma Qianchao" securities account transaction in the "silver cashmere industry" situation.

Ma Guobin and Ma Qianchao jointly used the "Ma Qianchao" securities account transaction, "the silver cashmere industry", opened the securities account by Ma Qianchao and made the transaction, Ma Guobin provided all the trading funds, and the trading decisions were made jointly by Ma Guobin and Ma Qianchao.

The case involving "Ma Qianchao" Nanjing securities account was opened in Nanjing securities Yinchuan Zhongshan North Street securities business department in November 14, 2016. "Ma Qianchao" securities account in 2016 11, 18, and November 21st bought the "silver cashmere industry" a total of 594300 shares, the transaction amount of 4998100 yuan. In September 7, 2017 and September 8th, the "Ma Qianchao" securities account sold a total of 209600 shares in the "cashmere industry", with a turnover of 1011270 yuan. After calculation, the "Ma Qianchao" securities account has lost the above transaction.

(three) "Ma Qianchao" securities account transactions "silver cashmere industry" is highly consistent with the insider information and has obvious anomalies.

The securities trading activities of Ma Qianchao securities account are highly consistent with the insider information. Ma Guobin and Ma Qianchao opened a new "Ma Qianchao" securities account in November 14, 2016. The three party depository bank account, which corresponds to the "Ma Qianchao" securities account, was transferred to the "Ma Qianchao" securities account immediately after receiving the 5 million yuan transferred from the bank account of Ma Guobin in November 18th, and almost all of them were used to buy the "silver cashmere industry". The related transactions were obviously abnormal and Ma Guobin and Ma Qianchao could not make a reasonable explanation.

Three, the fact that Ma Qianchao's insider trading is "cashmere industry".

(1) Ma Qianchao's use of "Ma" securities account transactions "silver cashmere industry" situation

In addition to using Ma Guobin's securities account transactions with "Ma Guobin" and "cashmere industry", Ma Qianchao also used his wife, Ma's securities account, to carry out insider trading "cashmere industry". The case involving "Ma Mou" Nanjing securities account was opened in Nanjing securities Yinchuan Zhongshan North Street securities business department in July 15, 2015. The "Ma Mou" securities account bought a total of 97600 shares from November 14, 2016 to November 21st, with a turnover of 781261 yuan. In November 17, 2016 and September 6, 2017, it sold a total of 67600 shares in the "cashmere industry", with a turnover of 449362 yuan. After calculation, the "Mou" securities account transactions losses.

(two) the "cashmere industry" of "Ma Mou" securities account transaction is highly consistent with the insider information and has obvious anomalies.

The securities trading activities of the "Ma Mou" securities account are highly consistent with the insider information. Before the first purchase of the "Bank of China" securities account in November 14, 2016, the balance of capital shares was only 12.43 yuan. However, on November 14th, 16 and 21, the three party depository bank account of the "Ma Mou" securities account was transferred to funds totaling 485 thousand yuan, and immediately after the 480 thousand yuan was transferred to the "Ma Mou" securities account, almost all of them were used for transactions in the "silver cashmere industry". Since its opening in July 15, 2015, "Ma Mou" securities account has never traded the "silver cashmere industry", and has not traded since 2016. On November 14, 2016, 16 and 21, the assault was transferred to capital and almost all used for the transaction of "silver cashmere industry". The related transactions were obviously abnormal and Ma Qianchao could not make a reasonable explanation.

The above facts include securities account information, bank account information, transcripts, communication records and mobile phone information of Ma Qianchao and Ma Mou.

The above acts of Ma Guobin and Ma Qianchao violated the provisions of the seventy-third and seventy-sixth clauses of the securities law, and constituted the insider trading act described in the 202nd section of the securities law.

The Shanghai Securities Regulatory Commission decided to punish two people:

1. Aiming at the common insider trading behavior of Ma Guobin and Ma Qianchao, he ordered Ma Guobin and Ma Qianchao to deal with illegally held securities according to law, and imposed a fine of three hundred thousand yuan on Ma Guobin and a fine of three hundred thousand yuan for Ma Qianchao.

Two, in order to deal with the insider trading behavior of Ma Qian Chao, Ma Qianchao was ordered to deal with illegally held securities according to law, and Ma Qianchao was fined one hundred thousand yuan.