Netease Tech, 5/25/11
Nine senior executives at Chinese e-reader and handwriting input peripherals manufacturer Hanvon (002362.SZ) are suspected of insider trading for selling off 1.2 mln of their own shares on March 21, although Hanvon's 2010 annual report neglected to disclose that Hanvon expected major losses in Q1 2011.
The nine executives made the sale the first day the shares became eligible for trading. One deputy general manager sold 25% of his stake, the maximum a senior executive is allowed to sell in a single year for an A-share listed company, according to the China Securities Regulatory Commission (CSRC).
Hanvon chairman Liu Yingjian responded to the allegations by saying that the senior executives in question are all founding employees who have reached middle age and are facing domestic financial pressures, such as their children's tuition fees.