During this period, the company's shares increased by more than 50%. The investigation was triggered after a probe uncovered the secret trading activities. This incident highlights the regulatory scrutiny faced by Chinese tech companies, particularly those with significant market influence and those blacklisted by the US.
Key takeaways:
- Chinese regulators are investigating one of the country's leading AI and computing firms, Dawning Information Industry Co., after discovering illicit trading activities.
- The chairman's wife secretly traded 150 million yuan ($21 million) of company stock during a year-long mega-rally.
- Zhang Dihua made 590,000 yuan from 232 trades between March 3, 2023, and March 14, 2024.
- Dawning Information Industry Co., which is blacklisted by the US, saw its shares surge more than 50% during this period.