The stock price of Shunxin Agriculture once exceeded 36 yuan after closing positive for several consecutive trading days.
Starting from the cost of 18 yuan when Henglong Capital opened a position, the investment income has doubled.
The investors who were thrown off the bus in March and April watched helplessly as this dark horse rode away from home, and the fire in their hearts became more and more intense.
They went to the Securities Regulatory Commission official account and left messages one after another to report--
"Henglong Capital built a position accurately in the first quarter, and the results exploded in the first quarter. Isn't this insider trading?"
"Check Zhao Chen, check Henglong, they must have known the performance data in advance!"
"Doubling in one quarter, our small retail investors don't even get the soup, why should they?"
The messages were overwhelming and people were outraged.
Tuesday, May 8th.
Securities Regulatory Commission official Weibo posted a short update:
"In response to the recent suspected insider trading of Henglong Capital, which has attracted market attention, Securities Regulatory Commission has officially launched the investigation process and will carry out verification work in accordance with laws and regulations."
As soon as the news came out, those who were jealous of Zhao Chen clapped their hands and applauded.
"Securities Regulatory Commission finally took action! Zhao Chen must have failed this time."
"Insider trading should be strictly investigated, no matter who you are."
"Henglong's stock price is going to collapse, just wait and see the show."
Some media also took notice.
The headline on the Caijing.com site was changed to "Henglong Capital was investigated by Securities Regulatory Commission, and Zhao Chen was suspected of insider trading." Each headline became more sensational than the last.
The article quoted the doubts in Stock Bar and quoted the "analysis" of anonymous people. Every line of the article implies that there is something wrong with Henglong.
Some media uncovered the cases of Henglong's previous investment in Bubble Mary and Yunnan Agriculture Group, and questioned Zhao Chen's "why it can accurately check the spots every time."
Some media also used Zhao Chen's age to make an argument - "A young man in his early twenties has repeatedly succeeded in the capital market. Is there an ulterior secret behind it?"
Henglong Group's official Weibo issued a statement that afternoon, with only one sentence:
"Those who purify themselves will purify themselves. Investigations are welcome."
No explanations, no justifications, no long arguments.
Four words plus a comma, then four words and a period.
On the day the investigation team entered Henglong, Henglong's stock price plummeted.
It opened lower and gapped lower at the opening. It once fell 8% during the session, and the closing decline narrowed to 5.6%.
Someone in Stock Bar is gloating--
"Look, I feel guilty and the stock price has dropped."
"Securities Regulatory Commission dropped when I checked it, which means there is something wrong." Someone also spoke for Henglong--
"The stock price fell because of market panic, not because there was something wrong with Henglong. Everything will come to light when the investigation results come out."
Shen Jue called me on the night when the stock price plummeted.
"Zhao Chen, are you in the office?"
"Here."
"I'll come find you."
In less than an hour, Shen Jue appeared at the door of Zhao Chen's office.
She was wearing a dark trench coat and her face was much more solemn than usual. She didn't say any greetings after entering the door and sat directly opposite Zhao Chen.
"Zhao Chen, let me ask you the truth."
Shen Jue stared straight at him, "Have you done any insider trading?"
Zhao Chen leaned back on the chair and looked into her eyes. "No."
Shen Jue was silent for a few seconds, as if judging the weight of these two words.
Then she nodded, leaned forward slightly, and lowered her voice.
"Okay. I believe you. But Securities Regulatory Commission has already filed a case, and this matter will not pass easily.
I have some connections at Beijing. Although they cannot directly affect the results, they can at least make the investigation process fair and prevent it from being manipulated.
If you need-"
Zhao Chen interrupted her. "Director Shen, no need."
Shen Jue looked at him.
Zhao Chen said:
"Henglong did not engage in insider trading before and will not do so in the future.
This matter can withstand investigation. If you use your connections to help me, it will appear that we are guilty.
Let them investigate. Once the investigation is completed, our innocence will be confirmed."
Shen Jue stared at him for a while, then leaned back on the chair and took a long breath.
"You're right. I was too impatient."
Zhao Chen picked up the tea cup and took a sip.
"Director Shen, thank you for your concern."
Shen Jue shook his head and stood up.
"Okay, then I won't make any more trouble. If you need anything, call me anytime."
She walked to the door, suddenly stopped, and turned around.
"Zhao Chen, do you know what I admire most about you?"
Zhao Chen said nothing.
Shen Jue said:
"You have never been afraid of anything. From the first day you took over Henglong, you have never been afraid."
She opened the door and walked out.
Zhao Chen was sitting alone in the office. He picked up the tea cup and found that the tea was already cold.
He didn't ask Su Wantang to refill the water. He took a sip, and the bitter taste spread on the tip of his tongue.
The investigation team was sent by Securities Regulatory Commission Inspection Corps, a group of five people. The leader's surname was Zhou, who was in his early forties, wore a pair of silver-rimmed glasses, and spoke in a leisurely manner.
On the first day they entered Henglong, they retrieved all transaction records of Henglong Capital, Henglong Group's Board of Directors resolution document regarding Shunxin Agriculture's investment, and the communication records of all relevant personnel.
Meeting Room was temporarily requisitioned as the office space of the investigation team.
When the Henglong employees passed that door, they unconsciously slowed down their steps.
The investigation team called relevant personnel one by one for questioning.
The first one is Chen Xi, the person in charge of Henglong Capital.
The inquiry room is located in Small Meeting Room of Henglong, with a Long Table, two chairs, and a voice recorder on the table.
Three people from the investigation team are sitting across from each other, and Chen Xi is sitting here alone.
Team Leader Zhou is sitting in the middle, next to two younger investigators, one is responsible for recording and the other is responsible for retrieving information.
"Ms. Chen Xi, what position do you hold at Henglong Capital?"
Team Leader Zhou's voice is calm, but there is an unavoidable pressure.
"General Manager of Henglong Capital." Chen Xi's voice was steadier than she expected.
"Shunxin Agriculture This investment was led by you?"
"I took the lead in the details of the purchase. It was Board of Directors's decision to confirm the purchase - Board of Directors passed the resolution and I was responsible for its execution."
Team Leader Zhou flipped through the documents in front of him. "Your position opening time starts in late March, right?"
"Yes."
"Shunxin Agriculture's first quarter report was released on April 28.
You started building positions one month before the results were released. What was the basis for your decision?"
Chen Xi took a deep breath and opened the notebook.
Her notebook is densely packed with records of the date, price, and quantity of each transaction, as well as the release date and core opinions of each brokerage research report.
"Our decisions are all based on public information. Around March 20, Zhao Zong asked me to investigate the company Shunxin Agriculture.
I started collecting public information - the company's annual report, brokerage research reports, channel survey data, and industry analysis reports.
All materials are publicly available."
Team Leader Zhou asked, "Can you provide the release date of the brokerage research report?"
Chen Xi opened the notebook and pointed to him page by page.
"This is a research report released by Pacific Securities on March 2, with the title "Baijiu continues to improve, and operations gradually improve."
This is Shenwan Hongyuan's research report in mid-March, which mentions channel feedback and Baijiu's business growth expectations.
This is the research report of Dongxing Securities, Guosen Securities, BOCI, and Zhōngtài Securities, all at the end of February or mid-March.
All research reports are based on public channel research and information disclosed by the company."
Team Leader Zhou nodded and motioned to the recorder to write this down.
"Who decides the specific time and price when you open a position?"
"Zhao Zong's strategy - buy in batches below 18 yuan, don't rush, buy a little every day.
Board of Directors After passing the resolution, we started to implement it."
"We need to retrieve the communication records between you and Zhao Chen about this investment, including WeChat, emails, and call records."
Chen Xi nodded. "Okay. My mobile phone and computer are both here."
She handed over her mobile phone and laptop to the investigation team.
The investigator took over the equipment and began extracting data.
The questioning lasted for more than an hour.
When Chen Xi walked out of Meeting Room, the clothes on her back were soaked, but her expression was still calm.