Hong Kong’s SFC Fines Sun Min HK$15.6 Million for Insider Trading

The Securities and Futures Commission (SFC), Hong Kong’s paramount securities regulator, today fined businesswoman Sun Min HK$15,629,341 ($2.00 million) for engaging in market abuse.

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The SFC found that Ms Sun bought shares in China Huiyuan Juice Group Limited (Huiyuan) based on inside information accidentally provided to her and her husband.

The Market Misconduct Tribunal has found Sun Min guilty of insider trading in the shares of China Huiyuan Juice Group in connection with Coca-Cola's failed bid to acquire the Hong Kong-listed firm.

In 2008, Coca-Cola made an offer to acquire Huiyuan, one of the China’ biggest juice producers, for HK$12.20 per share and discussions continued into March 2009 without a deal being finalised as the mainland’s authority rejected the Acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term.

Before any public announcement had been made, Sun used her Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term account to purchase 3.13 million Huiyuan shares. But after announcement of the acquisition proposal, Huiyuan shares jumped 170 percent form HK$4.14 to HK$10.94

The authorities cited as evidence the notes of Min's secretary in her diary. The diary entries included: "Anti-trust Law in PRC the State might not agree to sell. There are risk(s). PE may not be able to reflect the post-acquisition PE."

In particular, the most telling point is the phrase concerning the antitrust law of China whereby the state might not agree to sell. This was seen as a direct reference to the antitrust provision, which an ordinary investor would not take into consideration unless they had knowledge of a potential takeover bid.