Progress in Hengrun Stock Manipulation Case: Multiple Groups of Investors Have Filed Lawsuits

Investors affected by the case can register their claims on the Sina Investor Rights Protection Platform.

The latest development in the securities market manipulation case involving Jiangyin Hengrun Heavy Industries Co., Ltd. (stock code: 603985) reveals that multiple groups of investors have submitted lawsuit materials to the court. The defendants include Cheng Lixin, the former second-largest shareholder, legal representative, and chairman of the company, along with two others.

Li Jian, a lawyer from Zhejiang Yufeng Law Firm, who has successfully represented investors in over 100 listed company cases, stated that the claim period for this case has not yet expired, and affected investors can still file lawsuits.

The case dates back to December 6, 2023, when the China Securities Regulatory Commission (CSRC) issued Penalty Decision No. [2024]142. The CSRC found that Cheng Lixin, Ding Jian, and Zhang Yazhou engaged in illegal activities, including colluding to hype the "computing power" concept by controlling the content, timing, and pace of information disclosure to manipulate the stock price.

From July 29 to November 8, 2023, the defendants allegedly released four pieces of positive news to artificially inflate the stock price of Hengrun. During this period, the stock price surged by 96.65%, significantly outperforming the SSE Composite Index, which fell by 6.86%, and the CSI Wind Power Industry Index, which dropped by 10.30%.

Additionally, from July 10 to December 1, 2023, Ding Jian reportedly used 22 securities accounts to buy shares during price declines to stabilize the stock price, generating profits of approximately 20.52 million yuan.

Under China’s Securities Law, market manipulation that causes investor losses is subject to legal liability. Li Jian noted that investors who traded Hengrun shares between July 10 and December 27, 2023, and suffered losses may be eligible for compensation, subject to court approval.

Affected investors are required to provide securities account information, transaction records (from July 1, 2023, onward), and contact details when filing claims.