BEIJING – Chinese regulators say an investigation reveals that the wife of a company chairman secretly traded 150 million yuan (S$28.6 million) in company shares during a year of mega-corporate trading. After becoming one of the country's most prominent artificial intelligence (AI) and computing companies, it is focused on. Larry.
Leiming Information Industry, one of a number of Chinese technology leaders on the US blacklist, revealed how Ms. Zhang Dihua was involved in 232 transactions between March 3, 2023 and March 14, 2024. He explained how he had obtained 590,000 yuan. The company's stock price soared more than 50 percent during this period. period.
That's when investors flocked to companies expected to ride the wave of AI development across the country, which is embroiled in a technology race with the United States. Dawning, who revealed her affair following an investigation by her stock exchange, apologized for the incident, but she stressed that Zhang had kept her husband Li Guojie in the dark.
The company's stock price rose as much as 4.1% on April 12th. Chinese regulators have vowed to crack down on insider trading and other market irregularities that persist at relatively young exchanges in a business environment where connections often matter.
Still, the rare public admission threatens to hurt one of the country's most influential tech figures. Backed by China's elite scientific research institutions, Dawning is one of the few domestic companies developing high-performance chips and servers for state-backed projects.
In 2019, the U.S. government sanctioned the company for its role in developing supercomputers, effectively cutting it off from American software and components.
Mr. Li, 80, who has served as Dawning's chairman for the past 10 years, is a distinguished academic and a member of the Chinese Academy of Engineering since 1995.
The Purdue University-trained computer scientist led Dawning during a computing boom sparked by the Chinese government's efforts to replace American technology. Just recently, investors recognized Dawning as one of his potential winners in the AI space.
Zhang's trading began two weeks before the stock started rising, and the stock peaked around June 2023. The stock has since risen another 83% between its February 2024 low and March 11, amid renewed excitement about machine-generated content.
Her actions were seen as a short-term deal by the executive's spouse. Dorning said Zhang submitted all profits in accordance with securities laws. However, she stressed that the transaction did not amount to insider trading based on private information, as the company's chairman was not consulted, according to her filing.
Mr. Dorning said that in addition to providing relevant training for executives, Mr. Lee and his wife would comply with the law.bloomberg
