Hong Kong’s Securities and Futures Commission has charged a former investment banker at regional broker CLSA with insider trading. The Financial Times reports that this is the fourth insider trading case brought this year by the SFC.
According to the SFC, in May 2005 Allen Lam of CLSA tipped off a local fund manager about plans by JCDecaux Pearl & Dean, an outdoor advertising company, to buy a 73 per cent interest in Hong Kong-listed Media Partners International Holdings. CLSA was advising JCDecaux on the transaction. The SFC alleges that the fund manager, Ryan Fong, then purchased more than 10m shares in Media Partners International ahead of the deal’s announcement, dumping them later for a 30-80% gain.
The FT reports that both Lam, who left CLSA in 2006, and Fong appeared in court yesterday but did not enter a plea.