Hong Kong’s Securities and Futures Commission has charged U.S.-based hedge fund Tiger Asia Management LLC with insider dealing and market manipulation. According to Dow Jones, the SFC claims that Tiger Asia used confidential information to make a HK$29.9 million (US$3.83 million) profit trading China Construction Bank Corp. shares in January.
The SFC alleges that Tiger Asia, its founder, and two other staff sold short 93 million CCB shares on Jan. 6 before the market opened, after having learned of a planned sell-off of shares in the Chinese bank by Bank of America Corp. Tiger Asia then allegedly covered its short sales after BofA cut its stake in the Chinese bank.
