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China: Around The Nation

Chinese accountancy professor ‘fined for insider trading’

Academic profited from inside knowledge about mergers and acquisitions deals while share trading, according to newspaper report

PUBLISHED : Friday, 20 January, 2017, 3:24pm
UPDATED : Friday, 20 January, 2017, 3:24pm

An accounting professor at a top university in China has been fined 1.1 million yuan (HK$1.24 million) and banned from investing in stocks for 10 years for insider trading, according to Chinese media reports.

Song Chang, from Renmin University’s business school in Beijing, was placed under investigation by the China Securities Regulatory Commission at the start of last year, the National Business Daily reported.

Song, an accounting expert who has served as independent director for many listed companies, was found guilty of having taken part in several inside trading and short-term swing trading activities over the past few years, the article said.

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The professor relied on tip-offs from one of his students engaged in the merger and acquisitions business in China, according to the article.

One of the operations that aroused the authorities’ attention involved Song buying over 900,000 shares in Gofar Marine Biological Industry Co for 7.16 million yuan in January 2015, several days before the company suspended its stock trading as it prepared for “important projects”, the report said, without elaborating.

The authorities were alerted due to the sensitive timing of Song’s trading and the large amounts involved.

Song later lost more than 400,000 yuan selling his stock in Gofar two months later when the company resumed share trading, according to the article.

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Song has resigned from four listed companies after he was placed under investigation, but was still the independent director of at least two firms by the end of last year, the report said.

One of the companies said Song would later be dismissed.

It is not clear whether Song will be punished by his university. His biographical details are still on the website of the business school.