SOHO China says CFO invested by policy over alleged insider trading

SOHO China

07/07/2022 11:02

HONG KONG, July 7 (Reuters) - Commercial property developer
SOHO China  0410.HK  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  BX.N .
    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.  urn:newsml:reuters.com:*:nL3N2NY12L urn:newsml:reuters.com:*:nL1N2QF04H    
    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% following the firm's
announcement, to the lowest in three weeks. They have lost 6% so
far this week. 

 (Reporting by Clare Jim; Editing by Frank Jack Daniel)
 ((clare.jim@thomsonreuters.com;))