Hikvision CEO Alleged Illegal Activities Investigated

By: Charles Rollet, Published on Dec 13, 2019

Hikvision's CEO Hu Yangzhong is under investigation for suspected illegal activities, according to the PRC's securities regulator. This has become the source of notable analysis and discussion within the PRC.

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Inside this note, we examine the allegations, what PRC financial news reports claim, what the illegality they believe may be and how this might impact the company. We also share insights from noted PRC financial markets expert Fraser Howie on the party state's operations and the role of the PRC's securities regulator.

Investigation **** *** ****

** ******** **,********* ************* *** *** *** its ******* ******* ***********, Gong *******, **** **** under ************* ** *** China ********** ********** ********** (CSRC) **** "********* ********** of ********** ************". ******* Hikvision *** *** **** gave *** **** *******.

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PRC ******* *** ********

**** **** ** ******* did *** **** ******* PRC ********* **** ******* from ********** ******** ******** speculating ***** *** ***** of *** *************, **** even ***** **** ****** Xinhua (*** *** ********** Shanghai ********** ****) ******* in:

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  • **** *** ****** ******** Being ************, *** ********* Get **** **** **?******/******** ********** ****.
  • *********: ******* ****** *********'* Senior ********** *************(***** **** ****** -**** *,**** *)
  • **** ******* *****, ** Yangzhong ****. ** ********* Playing ** ****** ************?****** *******
  • *** ********* ***** ******* Under ************* **** * Net ***** **** $** Billion; *** ** **** has *** ******** ****-****.******** ******** *****.

Potential ******* **********

***** ******** *** ******* Hikvision's ********* ******* ** raise *** *********** **** Co-Founder **** ******* **** large ******* ** ***** to *** ** ********* without ****** ***** ********** it, ********* ******* ** of ******* **************** ******* ****** **** such ************ **** ** announced:

******* **: *** ****** in *** ****** ** the ******* **** ** the *********, *********** *** senior ********** ********* ** a ****** ******* ***** be ******** ** *** listed ******* ****** *** trading **** **** *** date ** *** **** and *** ****** ******* shall **** ** ************ on *** ******* ** the ***** ********.

*** ****** *** *** non-disclosure ** ***** ****** is *******. ***** **** Market************** *** **** **** to ****** ********* ******** income *****, ****** **** anyone *** **** ***** amounts ** ***** ***** to * *******'* *** - **** ** **** Hongjia, ** ***** ********* investor - ***** **** a ***** *** **** upon *******.

Financial ****** ********: "*** ***** ******* *** ***"

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**** ***** ****** *****, a ************* *** ********* *******, about ********* ***** ************ despite ****************** *** *** **********. Howie **** **** *** actually ****** *** ****** the **** ***** ** the *****:

******* ******** *** ******** is *** * ******** so **** ***** *** founder ** * *** technology [*******] **** *** mean *** *** ***********. TheParty ***** ******* *** ***!
**** ******* ********* ** so ********* *** *** police ***** ** **** not **** *** *** execs *** *********** ** any *****. ****** ** stories ** *** ******* in ***** *** **** becoming *** **** ****** the **** ****!As *** ***** **** ***** *** *** ***** ** ***** * ******* **** ** *** ** ****** *** ***** ** *** *****. Almost all large private groups have had their founders disappeared for a few weeks, all illegal, all unexplained, and all modern day China. [emphasis added]

**** **** ***** ***** about *** ****'* ************ and *** ******/******* ***** such ** *********'* ****:

* ***'* *** *** common **** ********** ********* is *** ***CSRC ** ********* ******* ***** *** *** ***** ******* ***** ******** *** ** *********** ******* *** ****** ** ********** ************. That mantra about protecting retail investors is commonly heard because there is concern that they all come out to protest, especially outside the CSRC office!

** *** ****, ** it **** ** * independent *** *********** *********?Here *** ****** ** ****** *** *** **. NO financial regulator in China is independent or transparent as we understand those terms in Western or developed markets BUT that does not mean they don't try and crack down on clear breaches of rules and falsification of financials etc. There is plenty in the way of breaches and poor disclosure and all sorts of manipulations and the CSRC has fined and punished many companies and people.

*** **** **** *** to ** **** ** best ** ***but ** *** ********* ********** ** **** that it needs to juggle. [emphasis added]

Timing *** *********

**** *** ******** *** CSRC's***********/*********** ** ***** *** find *** ***** ********* about *** **** ************** can **** *** ******* there ** * ******** for ****** ******* ** be *********.

** *** *********, ** we ***** ******, ********* to ************* *** ** *** PRC, *** **** *** the ***** ** ****** administrative ********* **** ** fines *** ** *** violations ****** ** ******** acts, "** ***** ******** the ****" ** * separate *****.

** *********, ******* *** flurry ** *** ***** coverage, ********** ** *** details ***** **** ************* have **** ******** **** any ****.

Uncensored ****** *** ***

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*** *** *** ******* these ******* ** ** published, ***** ** ******* in ****** ***** **** the *** ******** *** of ********************** ******* ** *** world. *** ******* ****** 177/180 ********* ** ***** of ***** **************** ** ***************** ******* *******, **** worse **** **** ****:

** *** ********** ** suddenly ******** ******** ******** of *********'* *** ********** (something **** *** ***** observed ** *** ***** before), **** ** *** a **** **** *** Hikvision.

Hikvision ********

********* ******** ** ******* specifically ** ***** *******, given *** ******* *************, but *** **** ** this *********:

********* **** ********* ***** with *** ***** ********** Regulatory **********’* ************* ** the ***** ********* ** accordance **** *** ********** requirements. *** ******* **** has **** ******* **** the ***** ********* ****** to ** *** ****.

Impact ** *********

***** ********* *** ******** that **** ************* ** only ******* ** *** two *********** *** *** the ******* ******, ***** is ****** ***** **** any ******** ****** ** its *** **** **** a ****** ****** ** the *******.

** *** **** *** since *** *******'* ******** in ****. ********* ********* have **** **** ** that "**. **" ** central ** *********'* **********, driving *** ****'* ********** expansion **** *** *****'* largest ***** ************ ************.

*******, ** *** ******** side *** *********,*********'* ********, **** ********, *** *******'* ****-**** Communist ***** ********* *** a****** ** *** ******** government ***** ****, *** **** ********* by **** *************. ** this *** **** *** continued ***** ********** **** offsetting **** ** *** negative *********** ******* **** may **** **** *** action ******* **.

Comments (7)

*******, **** ****!

******* *** **** **** details **** *** *** make *** ****** *** space ************** *** *** those ** *** ********** in ******* ***** **** details, ** **** ****** them *****:

****** *******'************* **** *** ** important ****** ** *** very *** ** *** article.

****年*月**日、****年*月**日及**日,龚虹嘉通过大宗交易分别减持*.**亿股、*.*亿股股票,交易金额而分别为**亿元、**亿元。但上述三笔交易并未及时明确公告,直到****年*月*日被深交所下发问询函,海康威视才在答复函中披露相关信息。

**** *** *** ***** sell-offs, *** ** **** 27, ****, *** ******* one ** *** ** and **** ** ****. But ***** **** ** timely *********** **** ******* of *** ************. ********* did *** ***** ****** these *** ************, ***** 3.1 *** *.* ******* yuan ************, ***** *** 2018 **** ** ******** an ******* ****** **** the ******** ***** ********.

**** ** *********'*********** *** ******* ******, listing ****'* ****-*** *** stating ***** *** ** violating ** *** ********** regulations.

Screen Shot 2019-12-08 at 10 42 08 PM

** **** **, ****, Hikvision********* ****** ** ******** the **** ** ****. 27. *** ***** *** no ******** *** ****** disclosure ** ******** ******** to *** *** **&** 4.8 ******* **** **** by **** ***** *** response ****** ** *** Shenzhen ***** ********.

*******, ** *** **, Hikvision ******** * ****** detailing **** **** ** Yangzhong's ******** ******** **** the ****. *** *** Jan ** *** ** respectively, ** ****** **.* million *** **.* ******* shares ************.

Screen Shot 2019-12-08 at 10 57 43 PM

**** *** ** ** issue **** ** **** Gong **** ***.* ******* shares ** *** **, and **.* ******* ** Jan **. *** ***** was ** ********* ********** of **** ***** *** 8, **** ********* ********* to *** ********'* *******. The **** ***** *** 37.48 ****

*********, ********* **** ******** on *** ** **** Hu ****** **.* ******* shares ** *** ** and ******* **.* ******* on *** **. *** purchase ***** *** **.** too. ** ***** **** Hu *** ********** **** Gong *** ******* *** part ***** **** ******* was *** ***** ********* until ********* *** *****.

***** ***** ****** *** a******-** ******** ***. ** ***** this ********** ** *********** detail / ****** *** these ******* – ******** tax *********.

*** ****** **** *** are *** ******** ********** stocks ***** ** *** IPO. ** **** ***** shares *** ***** ***** trades, **** **** *** 20%-25% ****** *** **** the ****.

**** * *** ** original ***** ****** ***** do ** ** **** until *** ***** **** a ***** *****, *** then **** **** ** another ******/****** ********* ** them (**** ***** *********, partners) ** **** **** stocks ** ***** ******. In **** ***, **** would *** * ********** lower *** *** **** don't *********** **** ***** assets.

***** **** * ****, those ******** ****** ****** non-original ****** ** ******* now **** ***** *** sell - **** *** price ** **** ***** - *** *** ********* market ******* ****** ** pay ****** ***. **** is * ******* ****** stock-laundering.

***** ******** ***** ** the *********** ****:

  1. **** **** ****** ** several *** ***** ***** transactions **** ****-****, ** prices ***** ** ******
  2. ** ****** ****** *** block ****** ** *** same ***** ** *** same *****
  3. **** ****'* ***** ******** all ***** ***** ****** until ***** *****
  4. **'* ******** **** *** two **** ******* ******* each ***** *** ** this *****, ** ***'* know ** ****'* ****** the **** ******* **** didn't ******** **
  5. ** **** **** ******* between **** *****, ****** they ******** **** ***** their ************ ** **** other *** ** *** company.

* **** ******** ******* this **** *********** ******* ****** *. SPALDING *** > *.*. Air ***** > ********* Display

**'* *********, * ******* everyone ********** ** ***** do *** ****!

* ***** *** ******* something *********, **** * link ** *** **** or **** *** ****!

*** *** ******* ************ ***: *** ***** Took **** ***** *******'* Elite *****?

**** *** ** *** already ***** *** ***, as ********* ** *** uncensored ********. ****** **** to ****** * ******** case *** ** *** at ***** *** ** them ******.

**** ** **** ****. Excellent ****.

** ** ***** *****, he's ***** ** ****** an ***** ***** **** soon

***** ** ** ***** in ** **** **** Mr ** ** *** absolute ******* ***** ****** Hikvision. * **** *** some **** *********** ************* with ***, * *** say * ******* * lot.

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