Canadian Hedge Fund Analyst Faces Verdict in China on Defamation Charges10-11 12:13 Caijing
A Canadian hedge fund analyst is facing a verdict by a Chinese court after he was jailed for more than a year on charges of defaming a Canadian company, the Beijing News reported.
Kun Huang, a 36-year-old stock analyst and head at the Chinese branch of a Canadian hedge fund was arrested after his employer alleged that ore samples from a mine in central China's Luoyang run by Silvercorp Metals tested low for silver content.
Huang's employer in September, 2011 released four reports written by Alfred Little in which the author also said Silvercorp may have been involved in a $1.3billion accounting fraud which caused its shares plunge 19percent in a single trading day.
Silvercorp, a Canadian company listed on the New York and Toronto exchanges, has six mines in China and most of its executives are Chinese, said the paper.
Huang was arrested in December 28, 2011 by Chinese police and later accused of defaming Silvercorp and watching the company's mine operations by illegally setting up cameras.
The People’s Court of Luoning County in Luoyang held a closed-door trial on September 10th and is yet to hand down a verdict.
Silvercorp CEO filed a lawsuit against Alfred in New York Supreme Court which ruled against the company, citing speeches of short sellers are protected in the U.S..
Huang and Wei Haizhang, one of his colleagues who has fled to London, have clear evidence of Silvercorp bribing Luoyang police which may have led to Huang’s arrest, the paper quoted Huang’s lawyer as saying.
"The bribery has made Luoyang police a Silvercorp tool, " he said.
The Canadian company later took the case to a court in Luoyang where its mine is a prominent enterprise and filed a lawsuit against Huang on defamation charges.
Huang didn't write the report and only provided related information and data which is neither threatening nor dangerous, said the lawyer.
He said Huang is physically well in prison and needs to wait for about half a month before a verdict is announced.
The researcher' arrests may be a response to the plunging popularity of Chinese shares that trade on U.S. exchanges, said Barron’s.
Investigators like Huang helped expose unflattering evidence on companies listed here via the back-door maneuver known as a "reverse takeover" -- inspiring a wave of short-selling, delistings, and fraud charges by U.S. regulators, the journal said.
Editors’ Picks »
- 1China to Cut Reserve Ratio for Some Rural Banks
- 2China M2 up 12.1Pc, Outstanding Yuan Loans 13.9 Pc in March
- 3Delayed Response to Tainted Water Raises Concerns
- 4Beijing Ranks 8th City with Most Global Appeal
- 5China's MMG to Acquire Las Bambas
- 6China’s Rare Earth Exchange Begins Trading Following WTO Ruling
- 7China Trade Fair Shadowed by Weak Exports
- 8Alibaba’s Q4 Net Income More than Doubles Ahead of IPO
- 9Embassy Says 2 Chinese Nationals Aboard Capsized S.Korean Ship
- 10South Korean Ferry Sinks off South Coast