A probe by the U.S. Securities and Exchange Commission into insider trading by a Hong Kong company controlled by Chinese billionaire Zhang Zhirong won?t affect the operations of his main two listed businesses, according to statements by the two today.
The SEC said on Friday it had obtained an emergency court order to freeze the assets of Well Advantage, a company it said is controlled by Zhang and which is suspected of earning illegal profits by buying shares in Nexen in advance of last week?s announcement by Chinese government-controlled Cnooc that it would acquire the Canadian energy firm. (Click here for a link to the full SEC statement.)
Zhang controls China Rongsheng Heavy Industries Group, a shipbuilding and offshore engineering and equipment supplier that has a strategic cooperation agreement with Cnooc. (See related article here.)
Rongsheng said in a statement today its board ?does not expect that the SEC matter will affect the normal business and operations? of the company. Zhang is Rongsheng?s chairman and non-executive director. Glorious Property, a real estate developer where Zhang is chairman and an executive director, said the same.
Zhang ranked No. 464 on the 2012 Forbes Billionaires List with wealth of $2.6 billion.
Rongsheng investors face some other bad news this morning:? the company in a separate statement today warned first-half profit would ?decrease significantly? from a year earlier (see link here).
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