Rumor: Hong Kong SFC Investigates Alibaba-ChinaVision Deal
Apple Daily, 5/13/14
According to an industry insider, in early March, the Hong Kong Securities and Futures Commission (SFC) issued a directive requesting that multiple securities dealers submit all of their transaction information involving Hong Kong-based television entertainment company ChinaVision Media Group (1060.HK) from January 2 to February 25.
ChinaVision's stock price and transaction volume during the aforementioned period showed unusual movement, with the company's share price rising 58% from HKD 0.405 to HKD 0.640, while the Hang Seng Index (HIS) fell approximately 4.4% during the same period. Additionally, the transaction volume of ChinaVision's stock during the period was at least twice that of the previous three months. The SFC suspects that, although Chinese e-commerce conglomerate Alibaba Group's plan to acquire a majority stake in ChinaVision was not announced until the middle of March, news of the transaction was leaked earlier to a group of investors that profited from the information.
In late March, the SFC narrowed down its list of suspected insider traders, and asked securities dealers to provide transaction data for the suspects. In early May, the SFC again requested transaction records, trading modes, and account information for the suspected insider traders.
The SFC has not commented on the rumor.
Editor's Note: For more background on this topic, please see "Alibaba Acquires Majority Stake in ChinaVision for HKD 6.22 Bln" MD 3/11/14 issue.
Keywords: scandal bourse e-commerce Hang Seng Index Internet television ChinaVision 1060.HK Alibaba Group film production TV content production
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