Thursday, May 10, 2007
There's NO Insider Trading in HK!
Everyone knows it's a damn lie! But this is the message behind the HKEX's response when asked about the Dow Jones incident, yet another typical head-in-the-sand approach to problems, or is there a head at all?
(This post is not about and won't comment the individuals involved in the U.S. SEC investigations, who are only being accused at the moment.)
Maybe the HKEX finds this a good PR opportunity to promote HK as an even-better-than-the-real-thing financial centre, just the way Donald likes it. "Hey, it's a cleaner market here! We won't allow that kind of things." But they seem to forget the persons under investigations are also active in the HK market.
The incident also comes timely as the HKEX has been taking a beating from the the Shanghai market for pretty much all this year.
Let me repeat what the masterminds in the HKEX have come up in response:
"There's enough laws and regulations in Hong Kong to deter insider trading from happening here." Well, I'm sure the U.S. regulations are really deficient in this regard even with truckload of lawyers over there.
"HK has a stellar record in prosecuting against insider trading." Yeah, there's been no new prosecutions since 2003 when it was made a criminal offense under the SFO. How can you have a bad record when there's no record? Or just like the HKEX suggests either it's a cleaner market here or the laws are really perfect.
Peter Lynch says 'invest in companies with a franchise so strong that even dummies can run it'. HKEX is a case in mind.
DISCLOSURE: I don't hold 388 at time of writing.
(This post is not about and won't comment the individuals involved in the U.S. SEC investigations, who are only being accused at the moment.)
Maybe the HKEX finds this a good PR opportunity to promote HK as an even-better-than-the-real-thing financial centre, just the way Donald likes it. "Hey, it's a cleaner market here! We won't allow that kind of things." But they seem to forget the persons under investigations are also active in the HK market.
The incident also comes timely as the HKEX has been taking a beating from the the Shanghai market for pretty much all this year.
Let me repeat what the masterminds in the HKEX have come up in response:
"There's enough laws and regulations in Hong Kong to deter insider trading from happening here." Well, I'm sure the U.S. regulations are really deficient in this regard even with truckload of lawyers over there.
"HK has a stellar record in prosecuting against insider trading." Yeah, there's been no new prosecutions since 2003 when it was made a criminal offense under the SFO. How can you have a bad record when there's no record? Or just like the HKEX suggests either it's a cleaner market here or the laws are really perfect.
Peter Lynch says 'invest in companies with a franchise so strong that even dummies can run it'. HKEX is a case in mind.
DISCLOSURE: I don't hold 388 at time of writing.
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