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China firm execs and fund manager charged in HK

AsiaOne 09/29/2011 23:12
China firm execs and fund manager charged in HK - Hong Kong - China - crime - Business

Hong Kong authorities have charged two executives at a Chinese agricultural firm and a fund manager for a US-based company with insider dealing, documents showed Wednesday.

The city’s financial secretary accused Chaoda Modern Agriculture’s Chairman Kwok Ho and Chief Financial Officer Andy Chan of supplying inside information to George Stairs, a fund manager at Fidelity Management.

The claims, detailed in a notice posted to the city’s Market Misconduct Tribunal, said Stairs used the information to improperly trade Chaoda stock before and after a HK$1.78 billion (S$294 million) share sale in June 2009.

Acting on insider information from Kwok and Chan, Stairs allegedly sold HK$1.98 million worth of Chaoda shares at HK$5.30 each before the placement and bought back HK$2.90 million worth of shares at HK$4.60.

The pair “knew or had reasonable cause to believe that Stairs will make use of the relevant information to deal in shares of Chaoda,” the documents said.