The chairman of audio-cassette manufacturer Yanion International Holdings has denied insider trading allegations against him and said he was the victim of bad legal and banking advice. Leung Wah-chai yesterday told the tribunal investigating his stock activities he had received inadequate advice from his lawyers and bankers. Tribunal member Felix Chow Fu-yee asked Mr Leung if he believed he had been properly advised about the regulations surrounding publicly listed companies. Mr Leung said he had been busy and had trusted the recommendations of his experts. 'From the time of the listing and for a period after, a lot of things were put to me, but because of my poor education level I probably didn't understand,' Mr Leung said. Mr Leung, who said his gross assets in 1991-92 were in excess of $180 million, was educated to primary six in China and did one year of English in Hong Kong. The investigation is centred on dealings in listed securities of Yanion by Danbridge Investments, Langer Services and Golden Key Investment between January 1 and May 12, 1993. On May 12, 1993, Yanion shares closed at 67 cents. The next day, after announcement of poor trading results for the year to December 1992, the shares dropped 10 cents, later stabilising at 60 cents. It was maintained at the hearing that no external factors, other than the announcement, could have effected the sudden price drop; that only insider knowledge about the poor year-end report could explain the escalated selling. During the period, the Hang Seng Index surged. It closed at 7,109 points on May 13, up 106 points on the day. On May 27 it hit 7,447. Counsel to the inquiry, Daniel Marash, said Mr Leung was behind the sudden dumping of Yanion shares before the dismal 1992 year-end report. 'I suggest that to you that you did know and were secretly trading in those shares in breach of stock exchange rules prohibiting you from doing so,' Mr Marash said. Mr Leung denied the allegation. In October 1991, 75 million Yanion shares were offered to the public at $1 each. The offer was 8.43 times oversubscribed. Danbridge had been allotted 11.2 million shares and paid $11.5 million for them by 12 cheques. One of the cheques, for $5.75 million, had been made out to Mr Leung. If the tribunal rules he dealt illegally, he will face a fine of $4.35 million - three times the $1.45 million he is alleged to have saved by selling high - and court costs. Mr Leung's sisters-in-law are the directors of Danbridge, but it was suggested Mr Leung was 'the true controller of Danbridge'. Golden Key and Langer are under the directorship of Mr Leung's relatives. Until early 1993, the three companies traded heavily in favour of buying, rather than selling, Yanion shares. It was suggested that 'it was beyond the capacity of the owners of those companies to fund such enormous trading', and that Mr Leung was behind the dealings. The trading pattern changed dramatically in early 1993. Danbridge, which had not bought or sold any Yanion shares since November 1992, sold 10.66 million between April 30 and May 12. Golden Key, which had not traded Yanion shares since June 1992, dumped 2.08 million between May 3 and 5. Langer had followed a similar trading pattern. The tribunal, before Mr Justice Michael Burrell, Mr Chow and Michael Sze Tsai-ping, continues on Monday. This is its fourth case.