It’s not just the UK that is cracking down on insider trading. Take a look at Hong Kong.
Less than three weeks after Ma Hon-yeung, a former BNP Paribas vice president, and his girlfriend, Ivy Lo, became the first people in Hong Kong to be jailed for insider trading (sentenced to 26 months and 12 months, respectively), the Hong Kong’s securities regulator secured a prison sentence in a second case today involving a former official from Chinese Estates Holdings who was sentenced to eight months in prison.
Reuters reports that Andy Lam, a former accounting manager with Chinese Estates Holdings, was also fined HK$130,000 (US$16,770) and an additional HK$54,394 in investigation costs. As discussed here in late March, Lam was convicted on two criminal charges of insider dealing in the shares of Chi Cheung Investment Co, Ltd. Hong Kong’s Securities and Futures Commission found that in 2007, while employed as an accountant by a subsidiary of Chinese Estates, Lam learned of a proposed asset swap between Chinese Estates and Chi Cheung. AHN reports that Lam placed orders in his own account as well as his wife’s to buy Chi Cheung shares before the asset swap proposal was announced publicly, and made a profit of HK$209,000 when the transaction was announced.