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SOHO China says CFO investigated by police over alleged insider trading

SOHO China says CFO investigated by police over alleged insider trading

People walk between buildings of Wangjing SOHO on the opening day of the compound, in Beijing September 20, 2014. REUTERS/Barry Huang/File Photo

(Corrects typo in headline to say investigated by police)

HONG KONG :Commercial property developer SOHO China said on Thursday its chief financial officer was under investigation by police for alleged insider trading in the company's shares.

The firm said in a filing its directors and other senior officers were not directly involved in the investigation, adding they are aware of the circumstances of the alleged insider trading.

State-owned Global Times carried reports from other media on Thursday that the alleged insider trading by CFO Ni Kuiyang was related to the developer's now-terminated deal with U.S. private equity Blackstone Group Inc.

In more than 12 months leading to the announcement of the deal, SOHO China's shares listed in Hong Kong were volatile whenever deal information was leaked, the state-backed media said, citing the reports.

SOHO China said in a statement in June 2021 Blackstone offered $3 billion to buy out the firm, but the deal lapsed three months later.

SOHO China and Ni did not immediately respond to email request for comment about the allegations of insider trading or whether the investigation related to the talks with Blackstone.

In the Thursday filing, the developer said because of the investigation, it has transferred the responsibilities of Ni on an interim basis to the financial controller. It added the investigation has no material adverse impact on its business operations.

Shares of SOHO China dropped 2.8 per cent following the firm's announcement, to the lowest in three weeks. They have lost 6 per cent so far this week.

Source: Reuters


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