In the News: China Convicts Ex-UBS Banker for Insider Trading; New China-Japan ETF Connectivity Scheme; and M&A Profitability Requirements
July 02, 2019 | BY
Marilyn RomeroIn a landmark case, an ex-UBS banker was jailed for nine years for cross-border insider trading; the China-Japan ETF Connectivity scheme was launched with four index-tracking ETFs; and the CSRC is considering lifting profitability rules on listed company M&A activities.
Shanghai court convicts ex-UBS banker for insider trading
In a landmark criminal conviction in China linked to the Hong Kong Stock Connect scheme, the Shanghai No. 1 Intermediate People’s Court convicted a former banker of UBS’ Shanghai office in a cross-border insider trading case. The former banker, identified only by his surname, Sang, was sentenced to nine years in prison for his role in leaks made about a $6.3 billion takeover of Hong Kong-based Orient Overseas by Cosco Shipping Holdings Co in 2017. Court documents said that Sang shared information with two associates about the acquisition. Sang denied any wrongdoing, and said will appeal the verdict, according the court’s statement. Sang’s associates paid him Rmb5 million, or $731,000, for the information, and subsequently made total profits of more than $17 million by trading shares in the two companies.
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now