The recent conviction of Du Jun, a former managing director of Morgan Stanley Asia’s fixed-income department from 2006 until May 2007, highlights the major crackdown on insider trading that has occurred in that territory in the past few years. Du now faces up to seven years in jail after a court found him guilty this week in the highest-profile “insider dealing” case ever prosecuted in the territory.
Insider trading (aka “insider dealing”) has been a criminal offense in Hong Kong since 2003. Hong Kong’s Securities and Futures Commission did not prosecute anyone under this law for five years, but came to life in this area in 2007 when it initiated a series of such investigations.
