By Du Yuan(杜远 )
Economic Observer Online
August 22, 2012
Translated by Zhang Dian
Original article: [Chinese]

Ji Minbo (季敏波), former vice president and general manager of the securities investment management department of Southwest Securities (西南证券), stood trial yesterday (Aug 21) in Chongqing on charges of insider trading.

Ji stands accused of using his position at Southwest Securities to obtain confidential information and make illegal trades from March 2009 to August 2011. Three illegal transactions were discovered with a trading volume as high as 54.6 million yuan. 

The first case was from March 1, 2009 to June 30, 2011, which involved Jingfeng Wine (金枫酒业), Chalkistomato (新中基) and two other stocks. Ji allegedly traded indirectly through the accounts of five other people at a volume of 2.72 million yuan.

Ji also allegedly traded 20 stocks including Avcon (华平股份) and Dingli Communications (世纪鼎利) at a volume of 48.2 million yuan through another’s personal account.  

Then on April 12, 2011, Ji asked a subordinate to sell 449,800 shares of Jinggu Linye (景谷林业). At the same time, Ji bought 267,000 shares through five other accounts and later sold them for a profit. 

In response to the accusations, Ji and his lawyer only admitted the third case. They claim Ji made money through his financial proficiency rather than power abuse in the first two cases. The hearing ended in one day with the court announcing that it will release the verdict at a later date.