ByteDance employee fined nine times his profit for insider trading by China’s market regulator
- A ByteDance employee was fined nine times the 54,880 yuan (US$8,845) profit he made from selling 55,700 shares of Shenzhen-listed COL Digital Publishing
- The ByteDance employee was involved in discussions with COL Digital to expand its audio business
A ByteDance employee has been heavily fined from profiting from insider information of a digital publishing company it had partnered with, China’s market regulator said on Monday.
Tomato Novel, ByteDance’s free online literature platform, planned to develop its audio business in February last year, in which Wang was involved. He began discussions with COL Digital for a potential partnership since March 4, according to the document by the CSRC. His involvement constituted insider information and was a violation of China’s securities laws, the CSRC said.
Wang bought the shares of COL Digital on July 13 and 15 last year, and sold them on July 16, 2020.
ByteDance and COL Digital did not immediately respond to requests for comment.
COL Digital Publishing Group was founded in Tsinghua University in 2000. The company listed on the GEM board of the Shenzhen Stock Exchange in January 2015, and has over four million web novels, according to its website.