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To: Hubei Xingzheng Investment Co., Ltd.
Our Ref: No.5 [2003] CSRC
June 24, 2003
China Securities Regulatory Commission (hereinafter referred to as the CSRC), has carried out an investigation about the illegal practices violating the securities laws and regulations, and found that your company had illegal practices in the transaction of shares of Shenzhen Worldsun Enterprise Co., Ltd (hereinafter referred to as “Shen Wan Shan A Share”, stock code: 000049).
Between March 19, 2001 and April 2, 2001, your company opened a capital account (account No.: 0599) in the name of Dun Congyang in the securities business branch at Pulan 2nd Road, Foshao City of Changjiang Securities Co., Ltd, and bought 4,817,601 shares of “Shen Wan Shan A Share” by using 30 individual stock accounts. These shares were sold out as of July 16, 2001, with a loss of CNY4, 210, 800.33.
The practices described hereinbefore have violated the provisions under Article 74 of the Securities Law of the People’s Republic of China. Hence your company shall undertake the legal responsibilities as stipulated in Article 190 of the Securities Law of the People’s Republic of China. We hereby make decisions that your company shall rectify your illegal practices and punish the direct person-in-charge responsible for the above illegal practices, and cancel all the illegal accounts within 1 month after the date of receipt of this notice. And then your company shall report the rectification result to the Department of Legal Affairs of the CSRC.
Your company shall draw lessons from this rectification and prohibit practices of this kind happening again.
The China Securities Regulatory Commission
(This English version by Shenzhen Securities Information Co., Ltd. is for your reference only. In case any discrepancy exists between the Chinese and English context, the Chinese version shall prevail.)
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