A Hong Kong court has given the Securities and Futures Commission permission to serve a lawsuit on former China Forestry chief executive Li Hanchun, currently being detained on the mainland.
China Forestry - one of the nation's largest logging firms - said this week that Li had been arrested on the mainland for allegedly embezzling more than 30 million yuan (HK$35.5 million). He was relieved of his post just under three weeks ago.
Mr Justice Andrew Chung On-tak granted leave to serve legal papers outside Hong Kong after the securities watchdog made an application in the Court of First Instance yesterday.
The judge will allow it to serve the papers on Li and Top Wisdom Overseas Holdings, a company wholly owned by him, in the British Virgin Islands, the SFC said.
The SFC alleged in the proceedings that Li and Top Wisdom engaged in insider dealing in relation to the sale of 119 million shares of China Forestry through a share placement on January 12. The regulator asked for permission to amend the summons it had filed against Li and Top Wisdom and to continue a temporary injunction it had earlier obtained.
The judge granted leave for the SFC to amend the proceedings and that interim orders freezing HK$398 million held by Li and Top Wisdom continue.