Hong Kong's Securities And Futures Commission: Arrest Warrant Issued For Alleged Insider Dealer

The Eastern Magistrate’s Court today issued an arrest warrant for Ms Tang Xian, a Mainland resident, who did not appear at Court today to answer three insider dealing charges laid by the Securities and Futures Commission (SFC).

On 18 May 2011, China Wireless Technologies Limited (China Wireless) issued a profit warning announcement (Note 1).  On 19 May 2011, China Wireless’ share price fell 28.9%. 

The SFC alleges that Tang, a then manager of the finance department of Yulong Computer Telecommunication Scientific (Shenzhen) Co Ltd, a wholly owned subsidiary of China Wireless, knew that China Wireless recorded a significant decline in profit earnings for the months of January, February and March 2011. 

The SFC alleges that, between 11 March and 27 April 2011, Tang traded whilst she knew of information that was price sensitive and was not public until China Wireless disclosed it.  Tang made a total profit of about $130,000 from the exercise of 48,000 share options and from the subsequent sale of the converted shares and also avoided a loss of about $192,000 from the sale of 140,000 China Wireless shares she already owned.

The SFC told the Court that Tang resides in the Mainland and that she had not returned to Hong Kong since 26 November 2011 after the SFC’s investigation started.

Upon the SFC’s application, Mr Chu Chung Keung, Magistrate of the Eastern Magistracy, issued an arrest warrant against Tang.

Note:

1. China Wireless is now known as Coolpad Group Limited.