Justin Ho King-man, the son of Macau Chief Executive Edmund Ho Hau-wah and a former broker at JP Morgan Broking, was banned by the Securities and Futures Commission from the industry for four months for breaching the 'Chinese Wall' rule.
The SFC said the infraction occurred in March 2006, when Mr Ho, 26, then working in the equity sales department of JP Morgan, disclosed information about a share placement to his colleagues without authorisation from his supervisor, while continuing to recommend the listed company to clients.
The watchdog did not name the company but a source familiar with the situation said Mr Ho was handling a placement for mid-sized property developer Kowloon Development, a Macau landlord.
The 'Chinese Wall' restricts industry participants from exchanging information with colleagues or other departments about forthcoming or continuing deals to forestall the use of insider information.
Insider trading is illegal under Hong Kong law.
Kowloon Development's HK$1.16 billion placement took place in September 2006 with Cazenove Asia as bookrunner.