Hong Kong’s Securities and Exchange Commission (SFC) announces that the Market Misconduct Tribunal (MMT) has ordered Mr. Wu Kam Shing, former executive deputy general manager of China CITIC Bank International Limited, to release nearly $3 million in illegal proceeds. profits.
The Court found that he had engaged in insider trading in the shares of Bloomage BioTechnology Corporation Limited.
Between March 2017 and June 2017, Wu worked with a group of bank staff members on a loan transaction to finance Grand Full Development Limited’s bid to privatize Bloomage.
Once the loan was approved by the bank on May 22, 2017, Wu, in possession of the insider information, began acquiring shares of Bloomage – using his wife’s controlled securities accounts and his personal trading accounts – accumulating a total of 1,275,000 shares before the privatization program was announced to the public about three weeks later. Wu then disposed of the majority of the shares, making a profit of $2,971,604.43.
The MMT, in addition to ordering Wu to release the illegal profit from his insider trading, also made the following orders against him:
- a disqualification order prohibiting him from being a director, liquidator or receiver or administrator of the estate or business, or from participating in the management of any listed or unlisted company in Hong Kong, without leave of court, for three years, with effect from 29 July 2024;
- is prohibited from dealing in securities, futures contracts, foreign exchange leveraged contracts or collective investment schemes in Hong Kong for three years, effective from 29 July 2024;
- must not engage in any conduct that constitutes market misconduct;
- must pay the public and SFC costs and expenses; and
- the MMT report to be referred to the Accounting and Financial Reporting Board with a recommendation to take disciplinary action against Wu.