Ex-Citic Pacific’s Chui Appeals Insider Trades ConvictionAibing Guo
Citic Pacific Ltd.’s former deputy head of finance Chui Wing Nin appealed his conviction and sentence for insider trading.
Magistrate Li Kwok-wai, who convicted Chui last year and sentenced him to 15 months in prison, failed to adequately evaluate submissions on his behalf, Chui’s lawyer told Hong Kong’s Court of First Instance today.
Chui, who was also fined HK$1 million ($128,909), was convicted of two counts of selling shares in Citic Pacific in 2008 before the steelmaker issued a public statement disclosing potential losses of as much as HK$15.5 billion from wrong-way currency bets.
Stella Fung, a prosecution witness in the trial, testified on many subjects she had no expertise in, defense Lawyer Joseph Tse told the court today.
Citic Pacific, controlled by China’s biggest state-owned investment company, fell 55 percent on Oct. 22, 2008 after its announcement. Chui sold a total of 81,000 shares on Sept. 9 and Sept. 12 and avoided losses of as much as HK$1.36 million, according to Hong Kong’s Securities and Futures Commission.
Citic Pacific’s bets on the Australian dollar prompted a bailout from its parent Citic Group, which is backed by China’s cabinet, and the resignation of its then chairman Larry Yung.
The case is Hong Kong SAR and, HCMA15/2013 in Hong Kong’s Court of First Instance.