Xian Yan, the Chairman of P2P Financial Information Service Company, was fined 3.47 billion yuan (about $503 million USD) for stock market manipulation. The China Securities Regulatory Commission (CSRC) levied that penalty that included penalties and forking over illicit profits, according to ECNS. The fine was described as one of the largest ever as Chinese authorities increase their scrutiny of market manipulation and dubious activities. Yan is apparently banned for life from trading on Chinese securities markets.
P2P Financial Information Service Company used to be called Shanghai Duolun Industry Co. Two years ago, the company that is largely engaged in the real estate development business changed its name to include “P2P” to take advantage of the hot internet finance market. The company had acquired the domain P2P.com explaining it was worth “$100 million“. Its shares rose immediately. According to a report at that time, the company was forced to halt trading of its shares as the only difference was the new name.
Late last month, P2P Financial said their net loss had widened from 102.4 million yuan in 2015 to 459.8 million yuan in 2016.