Insider dealing in hong kong essay

I agree that Hong Kong is an attractive place for tourists. In this essay, I will give reasons why I think so. First of all, Hong Kong is a shopping and eating paradise.

Insider dealing in hong kong essay

The purpose of this memorandum is to provide an overview of the provisions of the SFO as they relate to Insider Dealing only. Insider dealing, also referred to as disclosure of price sensitive information or PSI.

Sections and of the SFO set out seven occasions on which insider dealing in relation to a listed corporation occurs. They are as follows: Person with inside information deals in shares of a corporation with which he is connected — Sections 1 a and 1 a Insider dealing in relation to a listed corporation occurs when a person connected with the corporation has information which he knows is inside information in relation to that corporation and: Take-over offer — bidder deals in shares of target — Sections 1 b and 2 Insider dealing in relation to a listed corporation also occurs when a person who is contemplating or has contemplated making a take-over offer for the corporation and knows that the information that the offer is contemplated or is no longer contemplated is inside information: This provision is designed to stop, for instance, a director of a company which is about to launch a take-over bid from telling his friends to buy shares in the intended target in order to make a profit when the price of those shares inevitably rises.

Impacts of insider trading | PolyU Institutional Research Archive

The provision is also designed to catch, say, a director of the bidder who sells short in the target when he knows but the public does not that the bidder is not going to increase its offer price at the end of the initial offer period but instead is to let the offer lapse.

The sub-section is designed to cover the person who deliberately leaks confidential information with a view to someone whether it be the person to whom he has leaked the information or some other person using that information to make a favourable deal on the Exchange. Recipient of inside information from a person connected with a corporation deals in shares of that corporation — Sections 1 e and 5 Insider dealing in relation to a listed corporation also occurs when a person has information which he knows is inside information in relation to a listed corporation which he received, directly or indirectly, from a person whom he knows is connected with the corporation and whom he knows or has reasonable cause to believe held the information as a result of being so connected: This catches the recipient of the leaked information who uses it either by dealing himself or by counselling or procuring someone else to deal.

The person who actually leaks the information would be caught by Sections 1 c and 3. Recipient of inside information about a take-over deals in shares of the target — Sections 1 f and 6 Insider dealing also occurs when a person has received, directly or indirectly, from a person whom he knows or has reasonable cause to believe is contemplating or no longer contemplating making a take-over offer for the listed corporation, information to that effect which he knows is inside information in relation to the corporation and: Person with inside information seeks to facilitate a dealing on an overseas market — Sections 2 and 7 Insider dealing also occurs when a person who knowingly has inside information in relation to a listed corporation in any of the circumstances set out above i.I agree that Hong Kong is an attractive place for tourists.

In this essay, I will give reasons why I think so. First of all, Hong Kong is a shopping and eating paradise. Essay on Insider Dealing in Hong Kong Insider dealing in Hong Kong Although insider dealing has been a criminal offence under section of Chapter , Securities and Futures Ordinance (SFO) in Hong Kong since , the Securities and Futures Commission (SFC) was initially slow to prosecute offenders, commencing its first criminal insider.

Although prohibited since the s, insider dealing has only become a crime in Hong Kong since After briefly discussing the reasons for and against the prohibition of insider dealing, this paper outlines the legislative history of the regulatory mechanism for insider dealing in Hong Kong, and critically analyses the current regulatory regime.

Therefore, Essay 1 addresses the signaling impact of directors' dealing in an informationally asymmetric environment like Hong Kong. Both the short-term and long-term abnormal share price reactions of the insider trading firms are examined.

Oct 24,  · Hong Kong's Richest Malaysia's Richest Insider Trading: Civil Or Criminal Crime? "If the person targeted for insider trading [tips] is a lawyer or some fiduciary that had an obligation to.

Insider dealing in hong kong essay

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Insider dealing under the Securities and Futures Ordinance