Monday, August 30, 2010

Gome's Du Juan Freed, SFC helpless

Chinese company listed in HK, insiders rape the company and the SFC is powerless to act.

"The Beijing high court upheld on appeal Wong's 14-year jail sentence for bribery and insider trading handed down in May. But it commuted a three year and six month term given to Du and released her, prosecutors said in a statement.

Wong, known on the mainland as Huang Guangyu, and Du have yet to answer allegations by Hong Kong's Securities and Futures Commission that they perpetrated stock market malpractice resulting in HK$1.6 billion in losses in 2008.

Last August the SFC won a High Court order freezing HK$1.66 billion in Gome shares controlled by Wong and Du. But to date it has been unable to serve a summons on the pair as their whereabouts were unknown.

People with direct knowledge of the case said the regulator cannot send a writ to Du across the border. Meanwhile, Du could send her representative to take part in Gome's special general meeting in the city next month."

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