A court in Hong Kong has jailed a former director of a holding company for selling shares prior to a company announcement which would have affected the share price, the Securities and Exchange Commission has announced.
Simon Chui Wing-nin, former assistant director of finance at CITIC Pacific, received a nine month custodial sentence and a HK$612,000 fine for selling 81,000 shares on September 9 and September 12, 2008, thus avoiding losses of as much as HK$1.36 million.
Read the original story from The Standard.
Chui sold the shares prior to an announcement by CITIC Pacific disclosing potential losses of as much as HK$15.5 billion from wrong-way currency bets.
CITIC Pacific is 58 % owned by the CITIC Group Corporation, formerly the China International Trust and Investment Corporation. This is a state-owned investment company of the People’s Republic of China, established by Rong Yiren in 1979 with the approval of Deng Xiaoping.
Meanwhile in China
The Chinese government, meanwhile, has launched a new anti-corruption offensive, warning officials not to cover up corruption, despite arresting at least 20 activists who called for transparency in the accounts of officials.
From the Reuters report:
“The Central Commission for Discipline Inspection, an arm of China’s anti-corruption watchdog, said investigators should probe the perpetrators of graft, besides supervising members of the ruling Communist Party and local investigators themselves.”