In Hong Kong, the insider trading trial of former Morgan Stanley managing director Du Jun has begun in the district court. Du faces up to seven years in prison, the maximum that may be given out at the district court level, The Standard reports.
As previously discussed here, former BNP Paribas Peregrine Capital banker Ma Hon-yeung was sentenced to 26 months in jail last month after the city’s first criminal trial for insider trading. Until 2003, the offense of insider trading was only punishable with fines in Hong Kong.
Du allegedly obtained the information when he was part of a Morgan Stanley team involved in advising CITIC, regulators said, and allegedly bought 26.7 million shares of CITIC Resources for about HK$86 million.