This paper examines the characteristics and price movements of legal insider transactions in hong kong abnormal returns are analyzed for intensive trading, as well as for samples grouped by industry classification, firm size, book-to- market ratio, price–earnings ratio, and relative trading volume of the insider transactions. Insider dealing: s 270, 291 sfo 9 • a person connected with a listed corporation • having information • which he knows to be inside information • deals in the listed securities cf previous s9(1) securities (insider dealing) ordinance: all the other employees of atml in hong kong and the mainland. Most of the forex traders use sigma option (one of world's best platform),since they are making some continues profit through their platform in forex trading, binary option, stocks and options trading. Under the hong kong market misconduct regime, insider dealing is typically enforced under sections 270 or 291 of the securities and futures ordinance ( sfo) however, these provisions are expressly subject to a territorial limitation, in that these provisions can only be used to prosecute insider dealing in. News of contraventions of the securities and futures ordinance by two locally admitted solicitors caught the headlines earlier this year one with respect to s 291 of the ordinance (“insider dealing” – listed securities in hong kong) the other with respect to s 300 (“fraudulent or deceptive” practices in a transaction involving.
Hong kong's securities and futures commission (“sfc”), the regulator responsible for monitoring and enforcing hong kong's insider dealing laws, signed multiple cooperation agreements with foreign regulators in 2017 this includes: a supervisory cooperation arrangement with the united states. Abstract although prohibited since the 1970s, insider dealing has only become a crime in hong kong since 2002 after briefly discussing the reasons for and against the prohibition of insider dealing, this paper outlines the legislative history of the regulatory mechanism for insider dealing in hong kong,. Welcome message the insider dealing tribunal was replaced by the market misconduct tribunal in 2003 and ceased operation from december 2009 upon completion of all cases in hand.
It has long been considered a paradise for investors who have a juicy bit of inside knowledge insider trading was not even a criminal offence in hong kong until 2003 earlier this year local tycoons banded together to block proposed changes to disclosure rules that, in effect, allow executives to front-run. Du jun was given seven years by a hong kong court for buying shares in an energy company while advising about the purchase of an oil field. Insider activity fell based on filings on the hong kong stock exchange from july 24 to 28 with 23 companies that recorded 158 purchases worth hk$119 million versus eight firms with 45 disposals worth hk$55 million the buy figures were down from.
This article presents the results of a detailed comparative empirical study of sanctions imposed for insider trading in australia, canada (ontario), hong kong, singapore, the united kingdom, and the united states the comparative study is based on a dataset of a significant size, scope and comprehensiveness,. Insider trading law in australia and hong kong – a brief comparison 香港内幕 交易法 （author, mr edward tai, consultant of our firm born and educated in hong kong, he is a solicitor admitted in hong kong, australia (nsw & sa) and england & wales he started off his legal career by practicing as a.
We examine the profitability of insider trading in hong kong between 1993 and 1997 on average, firms in hong kong have very concentrated ownership and insiders trade more actively and account for larger fractions of total turnover of their firms' shares than do us insiders inside sellers in hong kong earn negligible. Manipulating the secret information rules and regulations were developed to restrict insider dealing in the securities market in 2009, a major criminal prosecution in insider dealing (the “case”) took place in hong kong resulting in a 7-year imprisonment of the insider trader the penalty was regarded as one of the most. Abstract many previous studies on insider trading are based on data in the us capital market and conclude that insiders can earn abnormal profits this paper examines abnormal price perform- ance associated with insider trading in the hong kong stock market we find that abnormal profits associated with insider trading. The securities and futures ordinance establishes dual civil and criminal regimes for all types of market misconduct including insider dealing in hong kong.
The market misconduct tribunal has found sun min guilty of insider trading in the shares of china huiyuan juice group in connection with coca-cola's failed bid to acquire the hong kong-listed firm in 2008, coca-cola made an offer to acquire huiyuan, one of the china' biggest juice producers, for. Although prohibited since the 1970s, insider dealing has only become a crime in hong kong since 2002 by virtue of section 291 of the sfo a person connected with a listed company and having information he knows is relevant information commits an offence if he or she deals in the listed securities or counsels or procures.
The us securities and exchange commission said friday it obtained an emergency court order freezing brokerage accounts holding more than $29 million of profits gained from insider trading in advance of the april 2016 acquisition of dreamworks animation by comcast the sec alleges that michael. Hong kong's market regulator has earned a reputation as a force to be reckoned with over the past year, aggressively prosecuting market misconduct and securing a string of insider trading convictions having put a slew of financial professionals behind bars in 2009, the securities and futures commission. Our recent article examines the type, frequency, and severity of sanctions imposed for insider trading and trade-based financial market manipulation (“ market manipulation”) over seven years from 2009 to 2015 in australia, ontario ( canada), hong kong, singapore, and the united kingdom (uk.
In its landmark judgment of 15 january 2016 (the securities and futures commission v young bik fung & others, hcmp 2575/2010), hong kong's court of first instance found that two solicitors and others had contravened the securities and futures ordinance (sfo) by insider dealing in the shares of. Hong kongregulatory newsletter [sfc] to use section 300 which prohibits fraudulent schemes in transactions involving securities, to pursue insider dealing cases involving securities listed on foreign markets laundering compliance (ii) cybersecurity—with a greater emphasis for firms of all sizes on documenting. The mmt said that this may explain why some academic commentators have expressed the view that the s271(3) defence should be limited to occasions when a person was compelled to deal or had no choice to deal, a limitation that has been disapproved in hong kong in henry tai hon leung v insider.