HK insider trader jailed for nine months and China cracks whip on corrupt officials

A court in Hong Kong has jailed a former director of a holding company for selling shares FCA - insider tradingprior 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.

Students dance at 90th anniversary of Communist Party of China

Students dance at 90th anniversary of Communist Party of China

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.”

 

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