Former Morgan Stanley Asia managing director Du Jun had received approval from the bank before trading HK$87 million worth of Citic Resources shares and therefore was not guilty of insider dealing, his defence lawyer told the District Court yesterday. Senior counsel Alexander King said Du bought and sold the shares because he had a positive outlook on the company due to his own research, not because he had access to price-sensitive information. Also, Du acted 'in the belief that they were legitimate trades' because he had Morgan Stanley's internal control rules and sought permission from the bank's compliance department on several occasions before trading the shares. Prosecuting counsel Charlotte Draycott contended last Friday that Du only received permission because the compliance system at Morgan Stanley was run in 'a haphazard and ineffective manner'. She also said compliance officer Samantha Ng had misheard the name of the stock that Du wanted to trade as Citic Pacific instead of Citic Resources the first time he traded the shares in February 2007. Yesterday, however, Mr King rejected such claims, saying although Ms Ng got mixed up the first time Du sought approval, she and other compliance staff had recorded the correct company name on subsequent occasions when Du sought permission from the compliance department. 'The women sitting in Morgan Stanley's compliance group are well-educated professionals who are experienced in what they are doing,' Mr King said. 'They are not a group of women sitting there just to gossip about shopping.' Du, who has pleaded not guilty to insider dealing charges, was alleged to have traded shares of Citic Resources between February and April 2007 after reading e-mails containing price-sensitive information about the firm's bond offering plan and some oilfield acquisitions. He was part of the Morgan Stanley team organising the bond offering and among a small group of bankers who received the e-mails. Du bought 26.7 million Citic Resources shares for HK$87 million with HK$50 million of margin financing and sold them at a profit. Mr King will complete his final submission today, after which Judge Andrew Chan Hing-wai will make his ruling.