Recor Holdings' deputy chairman last week breached stock exchange listing rules by buying a 3.76 per cent stake in the electronics-manufacturing company before its interim results announcement, scheduled for today, according to Recor.
Deng Kun Xiong last Thursday bought 62.77 million Recor shares through a British Virgin Islands-listed company, Recor said.
The purchase, which represented 73.24 per cent of Recor's turnover on Thursday, substantially increased the price and trading volume, brokers said.
Mr Deng breached the stock exchange's model code for directors, the company said.
Under the code, a company director should not buy shares in the month before results are reported.
The stock exchange said it 'reserved the right to take action' against Mr Deng.
