繁

Company secretary jailed for insider dealing

Issue date: 2021-01-11 18:49:01

The Eastern Magistrates’ Court today sentenced Mr Chow Chiu Chi, company secretary of China Automation Group Limited (China Automation), to 45 days of imprisonment after he was convicted of insider dealing in the shares of China Automation following a prosecution by the Securities and Futures Commission (SFC) (Notes 1 & 2).

Chow was also ordered to pay a fine of $45,000 and the SFC’s investigation costs of $37,029.51.

The court heard that on 11 April 2016, Chow purchased a total of 534,000 China Automation shares through his wife’s securities account when he became aware of a possible general offer and was instructed to arrange suspension of trading (Note 3).

Between 14 and 21 April 2016, Chow sold some of the China Automation shares and made a profit of $7,417.  The notional profit of the shares remained unsold was $36,865.

“Chow’s position as the company secretary of China Automation enabled him to have access to inside information.  By using this inside information to profit from trading the company’s shares, he gained an unfair advantage in the market and abused the trust of the company,” said the SFC’s Executive Director of Enforcement, Mr Thomas Atkinson.

“Insider dealing is a serious criminal offence.  The SFC will continue to strive to bring criminal proceedings to deter such market misconduct,” Mr Atkinson added.

End

Notes:

1. China Automation was listed on the Main Board of The Stock Exchange of Hong Kong Limited in 2007.  The shares were delisted following a proposal of privatisation of the company which became effective from 29 October 2019.
2. Please see the SFC’s press release dated 17 December 2020 for further details.
3. The shares of China Automation were beneficially owned by Chow but held in his wife’s securities account.

News captured as of:2021-01-11 18:49:02

Source: SFC