The Zhejiang Securities Regulatory Bureau recently announced that Fu Baoshan, then an independent director of Dongjing Electronics, was ordered to disgorge illegal gains of 233,000 yuan and fined 700,000 yuan for insider trading in Dongjing Electronics shares. During the sensitive period of inside information, Fu Baoshan controlled and used another person's securities account to buy a total of 76,000 shares of Dongjing Electronics, with a transaction value of 422,400 yuan, making a profit of 233,000 yuan. The Zhejiang bureau determined that his trading behavior was clearly abnormal, highly consistent with the timing of his contact with inside information and insiders, and he failed to provide a reasonable explanation. Previously, Zhang Xin, then an independent director of Tianrui Instrument, was also fined 2.5 million yuan by the Anhui Securities Regulatory Bureau for insider trading. Experts point out that insider trading by independent directors is more harmful than ordinary insider trading, and strict punishment according to law helps safeguard the ethics of independent directors' duties and market fairness, and strengthens investor confidence.
Zhejiang East Crystal Electronic Co LtdIndependent director fined for insider trading in Dongjing Electronics shares
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