Since the news of being investigated on April 26, 2020, Yihua Life's share price has hit new lows one after another. By 2 1 on May 20th, the company's share price had been lower than 1 yuan/share. According to the listing rules of Shanghai Stock Exchange, if the daily closing price of the company's shares is lower than RMB 65,438+0 yuan for 20 consecutive trading days, the company's shares will be terminated from listing, which is a forced delisting transaction.
In the face of the delisting crisis, in order to boost the stock price, the executives of Yihua Life chose to increase their holdings. On May 2, 2020, directors Huang Guoan and Liu Weihong increased their holdings by 500,000 shares, with an average price of 0.99 yuan/share; On May 22nd, Chairman Liu increased his holding of 500,000 shares at an average price of 65,438+0 yuan per share.
Since then, Yihua Life's share price has rebounded, but it has always hovered around 1 yuan.
On 65438+February 10, 2020, the share price of Yihua Life began to fall continuously, and reached a record low of 0.76 yuan/share on 65438+February 23. From 65438+February 65438+May 2020 to 202 1 65438+20201October 6, the closing price of Yihua Life Insurance has been lower than1yuan/share for 6 consecutive trading days. Therefore, the company issued seven risk warnings that the stock may be terminated from listing.
654381October 6, Yihua Life once again announced that the company's senior management increased its shareholding. On October 6th, 65438/kloc-0, director Liu Weihong and director Zhou Tianmou increased their holdings of 806,000 shares through the trading system of the Shanghai Stock Exchange with their own funds, and they plan to increase their holdings of no less than 2 million shares (including those already increased) within 1 month.
At that time, Yihua Life said that the purpose of the two executives' holdings was to be optimistic about the company's sustained, stable and healthy development prospects based on their confidence in the company's future development and recognition of long-term investment value. Yihua Life's share price returned to above 1 yuan on October 7th.
After the notification by the CSRC, I wonder if these two executives can save Yihua Life from delisting again.
Since 2020, the CSRC has resolutely implemented the overall plan of the CPC Central Committee and the State Council to crack down on illegal securities activities according to law, followed the working principle of "establishing rules and regulations, non-intervention, and zero tolerance", and severely cracked down on major violations of laws and regulations such as fraud and counterfeiting of listed companies according to law. 57 listed companies were investigated for information disclosure violations, and 26 related criminal cases suspected of financial fraud were transferred to public security organs.
At present, Yihua Life's financial fraud case has entered the administrative punishment procedure. If the facts identified in the administrative penalty decision touch the major illegal forced delisting stipulated in the Measures for the Implementation of Major Illegal Forced Delisting of Listed Companies of Shanghai Stock Exchange, the company's shares will face the risk of major illegal forced delisting.
In addition, on March 1 day, 2020, the new securities law was formally implemented. Compared with the old law, the new "Securities Law" has greatly increased the penalties for securities violations of relevant entities.
According to the Securities Law, if there are false records, misleading statements or major omissions in the disclosed information, it shall be ordered to make corrections, given a warning, and fined between one million yuan and ten million yuan; Give a warning to the directly responsible person in charge and other directly responsible personnel, and impose a fine of not less than 500,000 yuan but not more than 5 million yuan. If the controlling shareholder or actual controller of the issuer organizes or instigates the above-mentioned illegal acts, or conceals relevant matters, resulting in the above-mentioned situation, a fine of more than1000000 yuan and less than1000000 yuan shall be imposed; The directly responsible person in charge and other directly responsible personnel shall be fined from 500,000 yuan to 5 million yuan.