Disposal triggers talk of insider trading
By Ding Yining |
June 29, 2012, Friday
|
Print Edition
Print Edition
CONCERNS of insider trading have surfaced after a former school alumni of the retired chairman of Tsingtao Brewery cashed in about HK$1.55 billion (US$193 million) by selling the brewer's 32 million Hong Kong-listed shares before the retirement was announced.
The brewery yesterday announced the retirement of Chairman Jin Zhiguo, citing personal health issues. He will, however, become the company's honorary chairman and chief advisor.
Ahead of the announcement of Jin's retirement, his former school alumni Chen Fashu, chairman of Shenzhen-listed New Huadu, cut his holding in Tsingtao by disposing of the H shares last week.
Tsingtao has been suspended from trading in Shanghai and Hong Kong since Wednesday pending announcement of òprice sensitive information.ó The stock will resume trading today.
The timing of Chen?s disposal of the brewer?s shares sparked talk among the media that he took advantage of his close relationship with Jin and sold the shares prior to the official disclosure of Jin?s retirement as chairman, a post he has held since 2008.
But Tsingtao rejected the speculation and said at a briefing yesterday that it had no knowledge of the sale and that the two parties didn?t confer with each other prior to the disposal.
Chen also defended himself in an e-mailed statement to financial news website Jinrongjie yesterday, saying that he sold Tsingtao?s shares on financial investment decisions and his investment met securities laws and regulations.
The brewery yesterday announced the retirement of Chairman Jin Zhiguo, citing personal health issues. He will, however, become the company's honorary chairman and chief advisor.
Ahead of the announcement of Jin's retirement, his former school alumni Chen Fashu, chairman of Shenzhen-listed New Huadu, cut his holding in Tsingtao by disposing of the H shares last week.
Tsingtao has been suspended from trading in Shanghai and Hong Kong since Wednesday pending announcement of òprice sensitive information.ó The stock will resume trading today.
The timing of Chen?s disposal of the brewer?s shares sparked talk among the media that he took advantage of his close relationship with Jin and sold the shares prior to the official disclosure of Jin?s retirement as chairman, a post he has held since 2008.
But Tsingtao rejected the speculation and said at a briefing yesterday that it had no knowledge of the sale and that the two parties didn?t confer with each other prior to the disposal.
Chen also defended himself in an e-mailed statement to financial news website Jinrongjie yesterday, saying that he sold Tsingtao?s shares on financial investment decisions and his investment met securities laws and regulations.
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