Recently, lithium metal producer Ganfeng Lithium was fined $0.62 million (4.42 million yuan) by Chinese regulators for insider trading.
The Jiangxi Supervision Bureau of the China Securities Regulatory Commission issued a prior notice of administrative punishment. The statement argues that Ganfeng Lithium’s behavior constitutes insider trading.
According to the China Securities Regulatory Commission, the company’s trading of Jiangxi Special Motor stocks was suspected of violating the securities law.
The Jiangxi Supervisory Bureau of the China Securities Regulatory Commission will confiscate Ganfeng Lithium’s illegal income of 1.105 million yuan. The company also will be imposed a fine of 3.316 million yuan.
In addition, the agency fined the chairman and president of Ganfeng Lithium $86,000 (600,000 yuan).
Ganfeng Lithium said that the company’s current production and operation are normal. But he also admitted that this matter might affect Ganfeng Lithium.Ganfeng Lithium’s share price fell after this information was published.