Hunan TV & Broadcasting Intermediary Accused of Insider Trading
LMTW, 7/11/11
The Hunan Qiyuan Law Firm has revealed that in its investigation of 1,679 individuals during the six months before Hunan TV & Broadcast Intermediary (000917.SZ) suspended its stock for asset reorganization (i.e., from June 25, 2010 to December 27, 2010), it found that 48 people -- including Yin Zhigang, a relative of general manager Yin Zhike -- had engaged in insider trading. The investigation also found that several individuals at China Merchants Securities, the company's financial advisor, and assets appraisal company CAREA Assets Appraisal had bought and sold the company's stock during the same period.
Hunan TV & Broadcasting Intermediary responded to the accusations, claiming that only a few employees had taken part in drafting and planning the restructuring of the company, and that employees of subsidiary companies, including Yin Zhigang, had not participated in the planning. Trading by the individuals in question was based solely on their personal understanding of public market data, the statement said, and was not related to any inside information.
Keywords: scandal corporate restructuring Yin Zhigang Yin Zhike law television China Merchants Securities Hunan TV & Broadcast Intermediary 000917.SZ
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