Concerned party: Sichuan Donghefeng Investment Co., Ltd.（hereinafter referred to as Sichuan Donghefeng）, whose legal representative is Zhu Yanfen，and registered address is Suites A, B, and H, F 7, Guodong Central Business Building, No. 52, Jindun Road, Qingyang District, Chengdu City, Sichuan Province.
Zhu Yanfen, female, was born in March 1972. Her address is No. 3, Chaidamu Central Road, Golmud City, Qinghai Province. She served as the legal representative of Sichuan Donghefeng at the time of the violation.
Gong Tianming，male, was born in July 1972. His address is Building 6, Golden Home, Futian District, Shenzhen City, Guangdong Province. He served as the Director of Capital Operation of Sichuan Donghefeng at the time of the violation.
Sichuan Donghefeng engaged in the stock trading by using others' accounts. According to the relevant provisions in the Securities Law of the People’s Republic of China (hereinafter referred to as the Securities Law)，CSRC placed the case on file for investigation and prosecution，and informed, pursuant to relevant laws and regulations, the concerned party of the fact, reasons and legal basis of deciding on an administrative punishment, as well as the rights of concerned party under the law. The concerned party did not make legal statement or defense, nor requested a hearing. The investigation and trial of the case has finished.
The investigation results show that the concerned parties including Sichuan Donghefeng had the following violations：
The account of Zhang XXX and the account of Zhu Yanfen were opened on January 5, 2010 in a branch of Essence Securities Co. Ltd., located at Lingshiguan Road in Chengdu City. The mode of transactions of the two accounts is online entrustment. Gong Tianming was responsible for the management and operation of the accounts.
The situation about the transfer of large-sum funds through the third-party custody account of Zhang XXX is as follows. 1. Transfer from other accounts: Transfer of funds of RMB 37.8 million and RMB 20 million both from the bank account of Chaidamu Qinghai Salt Lake Chemical Co., Ltd. (Hereinafter referred to as Salt Lake Chemical) separately on January 6 and April 1, 2010; transfer of funds of RMB 3 million from the bank account of Sichuan Donghefeng on October 26, 2010. 2. Transfer to other accounts: Transfer of funds of RMB 15,999,990 to the bank account of He Mouxia on March 9, 2010; transfer of funds of RMB 20 million to the bank account of Salt Lake Chemical on March 23, 2010. On July 14, 2011, this account suffered a loss of 7,659,189.63. On August 3, 2011, this account suffered a loss of RMB 10,719,899.35. On August 30, 2011, this account suffered a loss of RMB 15,706,393.58. As of December 12, 2011, this account still suffered a loss.
The situation about the transfer of large-sum funds through the third-party custody account of Zhu Yanfen is as follows. 1. Transfer from other accounts: Transfer of total funds of RMB 70 million through the bank account of Salt Lake Chemical separately on January 5, January 11 and April 1, 2010; transfer of funds of RMB 3 million through the bank account of Sichuan Donghefeng on January 14, 2010; transfer of funds of RMB 3 million through the bank account of Zhu Yanfen on October 20, 2010. 2. Transfer to other accounts: transfer of funds of RMB 30 million to the bank account of Salt Lake Chemical on March 23, 2010. On July 14, 2011, this account suffered a loss of RMB 3,855,731.93. On August 3, 2011, this account suffered a loss of RMB 5,322,853.99. On August 30, 2011, this account suffered a loss of RMB 8,596,616.50. As of December 12, 2011, this account still suffered a loss.
The financial accounts and bank vouchers of Salt Lake Chemical show the funds were directly transferred to the accounts of Zhang XXX and Zhu Yanfen. But the loan receipts were issued by Sichuan Donghefeng, and the accounting treatment name was “other receivables-Sichuan Donghefeng”. The accounts and bank vouchers of Sichuan Donghefeng show funds were directly transferred to the personal accounts, namely those of Zhang XXX and Zhu Yanfen. The accounting treatment names were “other receivables – Zhang XXX” and “other receivables - Zhu Yanfen”.
The above-mentioned illegal facts can be fully confirmed by many evidences including the account opening information, detailed transactions records, detail records of financial transactions, inquiry records of concerned parties, and financial books.
Sichuan Donghefeng’s behavior of stock trading through the accounts of Zhang XXX and Zhu Yanfen violates Article 80 of Securities Law，and constitutes the unlawful act prescribed in Article 208 of Securities Law. Zhu Yanfen is the executive officer directly responsible for the unlawful act of Sichuan Donghefeng, and Gong Tianming is the person directly responsible for it.
According to the fact, nature, case and social harm degree of concerned party’s unlawful act, CSRC made the following decision in accordance with the provisions of Article 208 of the Securities Law：
1. Order Sichuan Donghefeng to correct its behavior and impose a fine of RMB 30,000;
2. Give warnings to Zhu Yanfen and Gong Tianming， and impose a fine of RMB 30,000 to each of them.
Within 15 days after receiving the punishment decision, the above concerned party should submit the fine to China Securities Regulatory Commission.（Bank of deposit：Head Office of China Citic Bank; account No.: 7111010189800000162. China Citic Bank will directly turn over the fine to the State Treasury.）Copies of payment voucher marked with the name of concerned party shall be sent to the Enforcement Bureau of China Securities Regulatory Commission for filing. In case of refusing to accept the punishment decision, the concerned party may submit the application for administrative review to China Securities Regulatory Commission within 60 days after receiving the punishment decision, or institute an administrative litigation to the people’s court with the jurisdiction within three months after receiving the punishment decision. During the period of review and litigation, enforcement of the above decision shall not suspend.
China Securities Regulatory Commission
February 25, 2012
