ANNOUNCEMENT: UK Adviser is now PA Adviser. Read more.

SFC issues arrest warrant for lawyer

An arrest warrant has been issued for a lawyer working in Hong Kong.

|

The Securities and Futures Commission has accused Pan Caihong, who is based in China, of nine counts of insider dealing. The regulator alleges that in July 2009 Caihong was engaged by Great World Company Holdings Limited, a company listed on the Hong Kong Stock Exchange, to manage the proposed placement of 80,000,000 of its shares.

According to the SFC, the details of the proposed placement, including the fact that it was priced at a discount of about 14.5% to the prevailing market price, was confidential price sensitive information and that Caihong was an insider before the placement was announced to the market. As well as handling the announcement and the press conference, it is alleged that Caihong was also a shareholder in the company.

The SFC said that a few days prior to the announcement on 23 July 2009 Caihong sold 1,652,000 Great World shares, avoiding a potential loss of about HK$87,000.

Caihong, who is described as a Chinese mainland resident but frequent traveller to Hong Kong, is understood not to have returned to Hong Kong since the investigation began.
 

Latest Stories