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Taiwan probes insider trading claims over Asus subsidiary

Taiwanese authorities on Thursday said they were investigating reports of insider trading implicating an executive at leading tech firm Asus that involved the shares of a subsidiary chip designer.

TAIPEI: Taiwanese authorities on Thursday said they were investigating reports of insider trading implicating an executive at leading tech firm Asus that involved the shares of a subsidiary chip designer.

The Investigation Bureau, which also probes corporate irregularities, confirmed that it has launched an investigation after receiving a complaint involving ASMedia Technology.

The bureau declined to elaborate. But local media reported that an unidentified Asus vice president had made over NT$10 million (US$333,000) in profits from ASMedia share prices, which surged nearly 400 per cent in the April-July period to a high of NT$228.5 on July 7.

Asus chairman Jonney Shih started to look into the claims after he received a complaint from an ASMedia shareholder on the recent fluctuation in its share prices, it was reported.

ASMedia, which designs data storage controller chips, closed limit-down 7.0 per cent to NT$154.5 on Thursday.

Asus and ASMedia said that they would tighten internal controls after the allegations surfaced this week.

Asus made its name making motherboards but is now the world's number three tablet seller, with a five per cent share, and fifth in the PC rankings.  

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