Li Bingbing, Ren Quan deny insider trading allegations

Two Chinese celebrities denied on Thursday Weibo postings claiming that they conducted insider trading and made 20 million yuan ($3.28 million) in profits from a fund company they had invested in.

The verified Weibo account of lanjinger.com, a forum for China's financial journalists to share story ideas and contacts, posted multiple Weibo entries since Tuesday saying that actress Li Bingbing and actor Ren Quan were involved in a fund company, which allegedly conducted insider trading to make illegal profits.

Li Bingbing, known for films such as A World Without Thieves and The Knot, owns Shanghai Tianlu Hesong Film and Culture Co, which holds 20 percent of the shares of Beijing Huabo Xinye Investment and Management Center, the Weibo postings said.

Ren Quan, a lesser known TV show star, holds a 50 percent stake in Shanghai Qiangsheng Film and Culture Co, which owns a 10 percent stake in the Beijing investment company, the posting said.

Huabo Xinye, the posting reported, had obtained insider information and invested heavily in Yunnan Xiangyun Feilong Renewable Technology Holdings in late June, four months before Xiangyun Feilong completed its back door listing in Shenzhen.

"Ren Quan and I invested in a fund company, which is in charge of making investment decisions," Li was quoted in a Thursday Xinhua News Agency report, which cited news portal qq.com. "I am just a shareholder of this company, and I do not make the investment decisions, so I do not know any insider information."

Ren's publicity director said that the postings were "complete lies," Xinhua reported.

Ningbo Sunlight Electrical Appliance Co, the target of Xiangyun Feilong's backdoor listing act, reported a net profit of 2.12 million yuan in the first nine months of 2013, according to its earnings report. The company made a 21.02 million yuan of net profit last year.