Ma Huateng never thought that he would be involved in a mysterious insider trading case because of drinking and lying guns.

With the information disclosed by the CSRC, this huge amount of money, involving many dignitaries and celebrities, the case has emerged.

It all starts with the "health yuan".

Zhu Baoguo, a "post-60s" who started a business worth 5000 yuan, has always kept a low profile. according to public information, he worked in a store after graduating from university and later worked as a technician at the Fifth Chemical Plant in Xinxiang City, Henan Province. In 1992, Zhu Baoguo spent 90,000 yuan on the formula of female health care oral liquid invented by an old traditional Chinese medicine in Xinxiang and began to set up his own enterprise to produce "wife oral liquid."

Since then, Zhu Baoguo's business from health products to pharmaceutical industry began to take off-in 2001, "wife Pharmaceutical" was listed in Shanghai; in 2002, "wife" gained control of Lizhu Group, another pharmaceutical listed company, and acquired Hong Kong ginseng Eagle Brand. In 2003, Zhu Baoguo changed the name of "wife Pharmaceutical" to "Health Yuan Pharmaceutical" and spent 50 million yuan to return "Joy" ginseng to its unit.

Today, Health Yuan has the title of "the number one private enterprise in China's pharmaceutical industry", and Zhu Baoguo ranks 82nd on the 2020 New Fortune 500 rich list with 29.59 billion yuan.

At the end of 2014, Zhu Baoguo is preparing to reduce his holdings of Health Yuan. This makes the key role of the case "ou Yaping" have the opportunity to take the stage.

Ou Yaping is by no means an ordinary role. He has fought with Li Ka-shing and is chosen by Jack Ma, Ma Huateng and Ma Mingzhe.

Ou Yaping, who graduated from Beijing Institute of Technology, worked as a teacher in the management department of East China University of Science and Technology in Nanjing. Public data show that his first bucket of gold came from Hong Kong's oil trade in the early 1990s.

In 1987, ou Yaping was appointed Deputy General Manager of Hunan Foreign Economic and Trade Development Corporation. After that, ou Yaping left Hunan Foreign Economic and Trade Development Corporation to establish Hong Kong Yuheng Group Co., Ltd., serving as chairman and general manager. Ou Yaping's Hong Kong Yuheng Group Co., Ltd. is mainly engaged in fuel import and export business, and even the subsequent establishment of Bestar is also mainly engaged in the fuel business.

In 1993, Blackstone entered the real estate industry and developed Blackstone Garden in Shenzhen. In 1997, ou Yaping established China Baijiang Group, which specializes in urban gas development and holding management business, and actively distributes in the mainland. In 2007, ou Yaping sold most of his stake in Baijiang Gas to Li Shaoji. Ou Yaping concentrated his business on the real estate business and retained part of the power business.

Before he was promoted to the position of chairman of Zhongan Insurance by Sanma, he did not work much in the financial sector.

There is no exact information on how Zhu Baoguo and ou Yaping know each other. What is clear is that the circle of the top rich is not large, and the two have a lot of common friends.

Here's the point-Zhu Baoguo, who came up with the idea of reducing health yuan holdings at the end of 2014, received a promise from ou Yaping in February 2015. Ou Yaping told Zhu Baoguo that he was willing to help him reduce his holdings of Health Yuan shares. Taking into account the influence of Tencent, Zhu Baoguo also proposed to Ma Huateng in February and March 2015, hoping that Tencent Company would buy a stake in Health Yuan.

Ma Huateng then agreed to use his Hong Kong investment company to help transfer some healthy yuan stocks. During this period, ou Yaping and Ma Huateng also helped Zhu Baoguo reduce his holdings.

On the evening of March 24th, Zhongan Online held a financing celebration reception in Hong Kong, which was attended by Ma Huateng and Zhu Baoguo.

On that day, Wang Yaoyuan, the core character of the case, also attended the reception.

Compared with Zhu Baoguo and ou Yaping, Wang Yaoyuan's identity is much more ordinary. There is not much information about Wang Yaoyuan in the public data. Before 2013, the "Niu San" had repeatedly appeared on the list of the top 10 outstanding shareholders of listed companies, including ST Coconut Island, Huayuan Real Estate, ST Geology and Mining, and after 2014, Wang Yaoyuan seemed to have "disappeared".

Until 2015, the announcement showed that since March 16, 2015, Wang Yaoyuan had bought a lot of Health Yuan shares through his controlled account, buying 1.009 billion yuan in just half a month, with a net purchase of 820 million yuan.

Coincidentally, at the reception on March 24, 2015, Zhu Baoguo, ou Yaping and Ma Huateng agreed to participate in Hongxin's reduction of Health Yuan shares, and Ma Huateng commissioned ou Yaping to operate specifically. Wang Yaoyuan also met Zhu Baoguo, ou Yaping and Ma Huateng.

According to the CSRC, during this period-on the afternoon of March 14, Wang Yaoyuan spoke with ou Yaping for 57 seconds; on the afternoon of March 15, Wang Yaoyuan spoke with ou Yaping for 9 minutes and 13 seconds; on March 16, the accounts involved began to buy large amounts of Health Yuan stocks; on the morning of March 25, Wang Yaoyuan spoke with ou Yaping for 2 minutes and 20 seconds. Since then, the relevant accounts have further increased their volume and bought Health Yuan stocks.

I have to admire your efficiency.

On April 1, ou Yaping and Zhu Baoguo agreed on the framework plan for the reduction of Hongxinxing's holdings, including transfer price, transfer quantity, transfer mode, and so on. At 3 p.m., Zhu Baoguo Wechat informed Qiu Qingfeng, the then secretary of the board, that Hong Xinxing decided to reduce his holdings of Health Yuan shares. Upon application, shares of Health Yuan Company have been suspended from trading since April 2.

On April 4, Health Yuan issued an official announcement, revealing Hongxinhang's intention to transfer its shares held by Hongxinhang and its shareholders' intention to transfer all the issued interests of Hongxinhang Company. The shareholders of Hong Xinxing will transfer all the shares held by Hongxinxing to Miaofeng Co., Ltd. (ou Yaping's actual control) and Advance Data Services Limited (Ma Huateng's actual control). After the completion of the transfer, ou Yaping and Ma Huateng indirectly held 74.39184 million shares of Health Yuan through Hongxinxing, accounting for 4.81 per cent of the total share capital of Health Yuan.

This was immediately translated by the market as "Tencent invested in Health Yuan", and the share price of Health Yuan pulled up the limit for five times in a row.

Were it not for the disclosure of the CSRC, Wang Yaoyuan's operation would be difficult to be known to the outside world.

According to the CSRC, during the insider information sensitive period, Wang Yaoyuan spoke on the phone with ou Yaping five times and had contact with inside information insiders ou Yaping and Zhu Baoguo. While grasping the inside information, the Wang father and daughter mobilized nearly 1 billion yuan before and after to buy health yuan stocks on a large scale.

The CSRC determined that the time when Wang and his daughter bought "Health Yuan" was highly consistent with their contact and contact time with insiders with insider information, and even bought stocks several times, all of which occurred after Wang Yaoyuan spoke with ou Yaping, and their trading behavior was obviously abnormal, and there was no legitimate reason or legitimate source of information. The above-mentioned actions of Wang Yaoyuan and Wang Fengyi constitute insider trading.

Although Wang Yaoyuan argued that he did not operate the account involved in the case, trading "healthy yuan" was the personal behavior of his daughter Wang Yingyi. However, in the end, the CSRC decided to confiscate 906 million yuan of illegal income from Wang Yaoyuan and Wang Yingyi, and impose a three-fold fine totaling 2.719 billion yuan, totaling 3.625 billion yuan.

Insider trading means that insiders buy and sell securities or help others according to insider information, which makes securities prices the result of speculation made by a small number of people using insider information, rather than the result of a comprehensive evaluation of the company's performance by the investing public, which is explicitly prohibited by the Securities Law of the people's Republic of China.

The CSRC said that this case is a typical case of administrative violation of contact and contact insider trading, which undermines the "three public" principles of the securities market, infringes on the broad masses of investors' right to know and fair trade on the information of listed companies, and should be punished in accordance with the law.

The sky-high fine of 3.6 billion is also the largest for insider trading in recent years.