Financial Associated Press Review: Is there a two-pronged approach to insider trading self-examination and big data?
[Financial Associated Press Review: Is there a dual-pronged approach to insider trading self-examination and big data]Cailian Press, June 27, on the evening of June 26, many investors questioned the existence of insider trading in Baotou Steel Co., Ltd. and Northern Rare Earth. In response to an inquiry from the Shanghai Stock Exchange, it said that the price increase was due to the sharp rise in the price of rare earth oxides since the beginning of this year. After self-examination, no inside information was found to have been leaked. This response has once again raised public doubts. In view of the increasing controversy over this incident, the author believes that the conventional exchange inquiries are not enough, and the supervision should simultaneously invoke big data for cross-examination. And similar phenomenon is not the first time in the A-share market, and there are many cases that have been confirmed by big data afterwards, as evidenced by the previous Wangfujing case. Operational information such as obtaining tax-free licenses and substantial price adjustments in purchase and sales contracts involves a wide range of people and there are many insiders in the company. It is difficult to completely block the channels for obtaining inside information. However, the leakage of inside information usually leads to abnormal transactions, that is, before the official announcement of good news, some investors suddenly buy in large quantities, which is abnormal in terms of their trading habits. Such transactions should not only be the focus of day-to-day supervision, but also make good use of this tool in cases that have caused huge market disputes. (Special commentator Xu Wenshan)Return to Sohu, see more
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