Financial Secretary accuses Chaoda Chairman of insider trading

Aside from Chaoda Modern Agriculture’s Kwok Ho, CFO Andy Chan and Fidelity Management’s George Stairs were also implicated.

A Bloomberg report said, “The government alleges Kwok and Chan told Stairs about a June 2009 share placement three days before it was publicly announced, and the fund manager traded profitably as a result, according to a notice released by Hong Kong’s Market Misconduct Tribunal yesterday.”

The portfolio manager at Fidelity Management & Research Company, according to the report, allegedly netted HK$1.98 million on behalf of the funds that he managed by selling 374,000 shares prior to the placement and then buying 630,000 shares at a lower price as part of the stock sale.

View the report here.