Gov’t fines Asiasec Properties’ ex-secretary $1m for insider dealing

It stemmed from insider information regarding the sale of Dan Form's controlling stake.

The Market Misconduct Tribunal (MMT) found a former secretary and Mainland associate of Asiasec Properties (formerly, Dan Form) guilty of insider dealing with its shares, ordering them to disgorge over $1m in illicit profits.

The misconduct stemmed from insider information regarding the sale of Dan Form's controlling stake to Dai Xiaoming, then its chairman, chief executive, and executive director, at $2.75 per share.

The former secretary shared this with her Mainland associate, leading him to purchase 1.5 million Dan Form shares through various accounts between 5 and 19 September 2016.

The ex-secretary was found to have a financial interest in the trading activities through his Shenwan Hongyuan account. She was ordered to disgorge $794,347, whilst the associate had to return $206,067.

Both received four-year ‘cold shoulder’ orders, preventing them from trading securities, futures, or collective investment schemes in Hong Kong.

Additionally, the former secretary was disqualified from managing any listed corporations in Hong Kong.