HK: Insider trading capital

In the meantime the SFC/HKex fatcats are ordering more dimsum. Cold comfort in the fact that it's worse across the border in the wild east.

"The share prices of 20 companies listed on the main board of the Hong Kong stock exchange that announced major transactions between November and January moved much more sharply than the benchmark Hang Seng Index in the two days before they suspended trading ahead of making an official statement."

"That's quite normal in the Hong Kong stock market, especially for third-line or fourth-line stocks," said Ricky Tam Siu-hing, chairman of the Hong Kong Institute of Investors. "A lot of people in the market seem to know the news before the company [announcement] or the general public, so they buy ahead of it."

Shares in one of the companies concerned, Continental Holdings, rose 17.3 per cent over four days. Shares in another, Pearl Oriental Innovation, rose 61 per cent in a week. Shares in Jackin International rose 13.6 per cent in a day. In each case the sharp movements were followed by a suspension of trading and an announcement.