Changan Auto Insider Trading Case Revealed: Multiple Individuals Fined $23.5M for Buying Shares Ahead of Partnership Announcement

On November 25, 2023, Chongqing Changan Automobile Co., Ltd. (hereinafter referred to as "Changan Automobile," stock code: 000625.SZ) signed a Memorandum of Investment Cooperation in Shenzhen with a well-known technology company, proposing to jointly support the establishment of a new company focused on intelligent automotive systems and component solutions. The official announcement was released on November 27. Prior to the public announcement, related information had already circulated online. Regulatory authorities discovered that certain securities accounts linked to the two cooperating parties had made unusually large purchases of Changan Automobile shares shortly before the announcement, prompting an immediate investigation into these suspicious trading activities. The investigation revealed that, prior to the public disclosure of this material event, employees from the cooperating party—including Han, Peng, Jie, Wei, and Wang—collectively purchased Changan Automobile shares worth RMB 61 million using insider information, illegally profiting over RMB 4 million. The China Securities Regulatory Commission (CSRC) determined their actions constituted insider trading, confiscated all illegal gains, and imposed total fines amounting to RMB 16.69 million. Han and Wei have fully paid the penalties, and relevant leads suggesting criminal activity have been referred to public security authorities. According to publicly available data, Changan Automobile’s global sales reached 2.913 million vehicles in 2025, including 637,000 units sold overseas, representing an average annual growth rate of 50.4% in overseas sales over the past five years. The company aims to achieve overseas sales of 1.5 to 1.8 million vehicles by 2030, accounting for 35% to 40% of its total sales. Its overall annual vehicle sales target for 2030 is 5 million units, with the goal of ranking among the world's top ten automakers. In April 2026, Changan Automobile delivered 209,500 new vehicles, up 1.7% year-on-year, including 72,700 units delivered overseas—a 69.9% year-on-year increase—and 94,200 new energy vehicles, up 32.2% year-on-year.