China analyst faces insider trading charges

14 August 2009

An analyst at Haitong Securities in China has been accused of using insider information to manipulate stock prices.

Ye Zhigang is currently under investigation for allegedly causing the value of stock to rise by issuing positive comments about firms, China Daily reports.

This resulted in investors securing a profit on the shares and estimates in the Chinese media indicate that he personally made around $1.46 million from the activity.

A spokesperson at Haitong Securities told the news source that an investigation is "still underway", adding that Mr Zhigang has not been seen at the company since the end of last month.

According to the news source, insiders believe the company involved was Zongshen Power Machinery, as shares in the firm more than doubled in value after he advised investing in the company five months previously.

In related news, a number of bank officials and property developers have gone on trial in China for allegedly defrauding the Bank of Communications.

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