Former fund manager denies profiting US$4.6m illegally

A former Ping An fund manager and his wife went on trial yesterday in Shanghai on allegation of trading in stocks using insider information to earn illegal profit of 28.61 million yuan (US$4.6 million) but he denied the profit was that high.

At his trial in the Shanghai No. 1 Intermediate People's Court, Zhang Zhimin, 43, former vice manager of the investment department at Ping An Asset Management Co, was alleged to use his insider information to earn 28.61 million yuan in profit when he worked in the company between 2009 and 2012.

Zhang asked his wife Yin Qiong to trade 140 stocks, including Xugong Construction Machinery, Tianma Micro-electronics Co and Hubei Yihua Chemical Industry Co, in three accounts totaling 1.34 billion yuan, according to the charge.

Zhang confessed that he bought shares using insider information but he disputed he made a profit of 28.61 million yuan.

"I confess to the guilt but I only made around 10 million yuan," Zhang told the court.

Last May, the China Securities Regulatory Commission made an announcement about Zhang's case, also known as "rat trading," saying preliminary investigations found he made about 15 million yuan through his total investment of 487 million yuan. But yesterday the alleged investment amount was nearly tripled.

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