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Transparency of Information in the Market: The Citic Case Before the Market Misconduct Tribunal

4 Pages Posted: 24 Jul 2017 Last revised: 7 Sep 2017

Syren Johnstone

Department of Law, University of Hong Kong; Asian Institute of International Financial Law

Nigel Davis

University of Hong Kong

Date Written: June 1, 2017

Abstract

This paper identifies some of the more important issues raised by the finding of the Market Misconduct Tribunal that CITIC's non-disclosure of price sensitive information at a time when it made a no material adverse change statement did not amount to market misconduct for the purposes of section 277 of the Securities and Futures Ordinance. It is suggested that the causal relationship between "no change" public announcements and maintenance is inadequately explored, and that the Tribunal's interpretative process and approach to the listing rules is inappropriately circumscribed. The case has left the market in an unsatisfactory situation in a number of regards.

Keywords: securities and futures ordinance, SFO, CITIC, SFC, securities and futures commission, information, transparency, listing rules

Suggested Citation

Johnstone, Syren and Davis, Nigel, Transparency of Information in the Market: The Citic Case Before the Market Misconduct Tribunal (June 1, 2017). Hong Kong Lawyer, Forthcoming; University of Hong Kong Faculty of Law Research Paper No. 2017/014. Available at SSRN: https://ssrn.com/abstract=3006477

Syren Johnstone (Contact Author)

Department of Law, University of Hong Kong ( email )

Faculty of Law, Pokfulam Road
Pokfulam
Hong Kong
Hong Kong

HOME PAGE: http://www.law.hku.hk/faculty/staff/syren_johnstone.php

Asian Institute of International Financial Law ( email )

Faculty of Law, Pokfulam Road
Pokfulam
Hong Kong
Hong Kong

HOME PAGE: http://www.law.hku.hk/faculty/staff/syren_johnstone.php

Nigel Davis

University of Hong Kong ( email )

Pokfulam Road
Hong Kong, Hong Kong
China

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