Xiao Shiqing (smoker) sometimes plays cards with cellmates to pass the time. Last April, Xiao Shiqing, the former president of Galaxy Securities, was sentenced to suspended death sentence for taking bribes and insider trading. He is preparing to write a book on solving the "three rural issues" to give back to the poor land that raised him. â–¡Reporter Han Jingwei, text and pictures. Reading prompt: Silent and not good at talking. It was hard to find the shadow of a "securities tycoon" in Xiao Shiqing at the first provincial prison. In late April 2011, Xiao Shiqing, the former president of Galaxy Securities (at the level of a full-time hall official), was finally sentenced to a suspended death sentence by the Higher People's Court of Henan Province for taking bribes and insider trading. Xiao Shiqing took bribes amounting to 15.46 million yuan and made a profit of 100 million yuan through insider trading. On December 27, 2011, the Supervision Department, Ministry of Public Security, and CSRC jointly held a press conference, exposing the details of Xiao Shiqing's insider trading case for the first time. On February 4 this year, I met Xiao Shiqing, who is currently serving his sentence, at the First Provincial Prison, hoping to get a close-up understanding of this legendary figure who had twice entered and left the CSRC, always changing between the roles of an official and a businessman, and used his power to gain huge benefits for himself, which also sent him to prison.
Part A: From a mountain child to a popular figure skilled in navigating both political and business circles. When the reporter met Xiao Shiqing, Xiao was playing cards with his fellow inmates. Xiao has a baby face, somewhat resembling a fortune, and he looks very kind when he smiles, but he almost never smiles. Inside the prison, Xiao Shiqing's main task is to do odd jobs in the kitchen. As a full-time hall-level official, Xiao does not resent the position assigned to him by the prison; it seems he has adapted to life inside the prison. However, Xiao Shiqing rarely communicates with others and is even less willing to reveal the details of his crime. He told the reporter: The process of his crime can be found in the court's files, and one can understand from there.
It is understood that Xiao Shiqing was born in 1964 in Wengtang Village, Sange Si Township, Longhui County, Shaoyang City, Hunan Province, where his ancestors were farmers. As a child from the mountains, after graduating from university, Xiao Shiqing became a teacher at the Central Financial Management Cadre College and holds a Ph.D. in management. In 1996, at the age of 32, after meeting Wang Yi, the former vice chairman of the CSRC, Xiao was transferred as a special talent to the China Securities Regulatory Commission while still being a university professor. In 2001, at the age of 37, Xiao Shiqing was suddenly appointed to Orient Securities as Chairman and Party Secretary, President. In January 2007, Xiao Shiqing was transferred to serve as a member of the party committee of China Galaxy Financial Holding Co., Ltd., and as Party Secretary, Discipline Inspection Secretary, President, and Legal Representative of China Galaxy Securities Co., Ltd. In April 2009, Xiao was taken away by relevant departments for investigation. Afterwards, it was rumored inside the CSRC that nearly ten million yuan in cash was found in Xiao Shiqing's home.
Part B: Breaking records, making a profit of 100 million yuan through insider trading. The charges against Xiao Shiqing mainly revolve around two crimes: taking bribes and insider trading. The act of taking bribes mainly manifests in two areas.
Firstly, Wang Lei, Wang Yi's younger brother, sought Xiao Shiqing's help to remove obstacles for Qingdao Jinwang's listing. With Xiao's help, Wang Lei managed to get Qingdao Jinwang's IPO approved. To thank Xiao Shiqing for his help, Wang Lei gave Xiao 200,000 yuan in cash in the parking lot of a Beijing club in December 2006. Another bribery charge against Xiao came from his purchase of a residential property at a low price in 2008. This property involved another listed company, Yicheng Shares. At the time, Yicheng Shares was seeking an increase in issuance, and China Galaxy Securities Co., Ltd., where Xiao Shiqing worked, was the sponsor and underwriter of this share issuance.
Yicheng Shares' financial report showed that its debt-to-asset ratio had reached 74.9%. Yicheng Shares' application for increased issuance was rejected by the CSRC. Later, with Xiao Shiqing's help, Yicheng Shares passed a new issuance plan, and the issuance method was changed to public offering. On October 30 of the same year, the new plan was approved by the CSRC. Through this issuance, Yicheng Shares ultimately raised 1.2 billion yuan. Yicheng's debt-to-asset ratio pressure was relieved.
Judicial materials show that as a powerful regulator, Xiao Shiqing had various ways of rent-seeking, involving the listing, increased issuance, or restructuring of multiple stocks such as Qingdao Jinwang, Yicheng Shares, Jiuzhitang, Guojin Securities, etc. Among them, through insider trading, he made a profit of about 100 million yuan by buying and selling Guoyuan Securities stock, breaking the record for insider trading profits among fallen officials. In April 2011, after the second trial, the Higher People's Court of Henan Province made a final verdict on Xiao Shiqing's case of taking bribes and insider trading. Xiao Shiqing was found guilty on both counts and sentenced to death, with a two-year reprieve.
Part C: Planning to write a book, expecting to give back to the poor land that raised him through writing. Police officer Ma Chiyu, responsible for managing Xiao Shiqing, told reporters. On July 8, 2011, Xiao Shiqing entered the First Provincial Prison to serve his sentence and undergo reform. When he first entered prison, Xiao Shiqing appeared to have a heavy mental burden. His sleep was poor, and he only got four or five hours of real sleep each day. Xiao smoked heavily, consuming at least two packs a day. Due to suffering from hypertension and heart disease, his physical and mental health conditions were somewhat poor. On the evening of October 3 last year, Xiao Shiqing fainted due to a heart attack while sleeping, but fortunately, he was discovered in time, avoiding a crisis.
Regarding Xiao Shiqing, this relatively special teaching object, police officer Ma Chiyu said that no matter how long it takes, he almost talks to Xiao Shiqing every day, trying to help him resolve negative emotions. Xiao usually also likes to play cards and chess with other prisoners. However, Xiao Shiqing is always unwilling to talk about any deep inner pain, and whenever touched upon, he generally skillfully changes the subject. On January 19 this year, Xiao Shiqing's family specially came from Hunan before the Spring Festival to see him. Due to Xiao Shiqing's strong self-esteem and inner conflicts, the pain of wanting to see yet fearing to see his relatives made him not happy because of the visit. On the way back to the dormitory with the police officer, Xiao Shiqing shed tears all the way and did not make a sound.
In a confession letter during the prisoner education phase, Xiao Shiqing wrote down the following content: "Deeply reflecting on my own crimes, I deeply regret and feel guilty about my past behavior. I am sorry for the many years of cultivation by the Party and the people, and I am sorry for the care and support of my parents, wife and children, and friends... In the process of transformation, I will use my blood, tears, and sweat to wash away the filth in my thoughts, change my ways, and start anew."
As a southerner, Xiao cannot adapt well to the local eating habits and cold winter climate in Kaifeng. However, due to his usual polite behavior, he has received active care from many prisoners. "His cotton clothes, pants, and shoes were remodeled by his fellow prisoners."
Under the education of prison police officers, Xiao Shiqing has planned the following idea for how to spend his long sentence and reposition his life: to write a book from an economic perspective on solving the 'three rural issues', looking forward to giving back to the poor land that raised him through his thoughts.